Australian mobile network provider Optus has entered into a conditional agreement to buy Vividwireless Group, which owns and operates two wireless broadband businesses in the country.
Vividwireless will be sold by media company Seven Group Holdings…
Australian mobile network provider Optus has entered into a conditional agreement to buy Vividwireless Group, which owns and operates two wireless broadband businesses in the country.
Vividwireless will be sold by media company Seven Group Holdings for a cash consideration of A$230m (US$248m). The deal is expected to be funded from internal sources of funds and debt.
The acquisition gives Optus access to up to 98MHz of spectrum in the 2.3GHz band, which is already used by some operators to provide 4G services.
“Optus plans to use this spectrum to build a 4G network using LTE-TDD technology,” the company said. “It will be integrated with Optus’ 1800MHz 4G network, which will be launched in Newcastle and the Hunter region of New South Wales in April 2012.”
Although Optus has already secured spectrum in the 1800Mhz band, it has yet to commercially launch 4G services.
“The acquisition of Vividwireless will give Optus a significant increase in network capacity to address the next wave of data growth that is just around the corner,” stated Paul O’Sullivan, Optus CEO.
“By integrating it with our current 4G rollout (in the 1800MHz band), we will be able to provide increase mobile speeds to our customers in metropolitan Australia.”
The only telco currently providing 4G services in Australia is incumbent Telstra.
Optus, which is owned by Singapore Telecommunications (SingTel), said that closing of the deal is subject to several conditions, including the reissue of Vividwireless’ 2.3GHz spectrum licence and approval from the Australian Competition & Consumer Commission and the Foreign Investment Review Board.
Viviwireless had a consolidated net asset value of A$11m (US$11.8m) as of 30 June 2011, when the company’s latest audited consolidated financial results.
