Optus to convert entire 2G network to 3G

Stuart Corner
Tuesday, 30 January 2007 09:51

Business IT - Networking

In a move that will put it on a more comparable footing with Telstra and its Next G network, Optus is to expand its 3G network from its present capital city coverage to match that of its 2G network, which reaches 96 percent of the population.

Rollout will commence in April and is expected to be completed by 2010 by which time Optus will have installed between 2000 and 2500 new base stations. Total capex will be between $500 million and $800 million depending on whether Optus uses the same frequency as its existing 3G network, 2100MHz or 900MHz.

The lower frequency provides greater range from each base station but there are at present few users elsewhere in the world and few handsets. Optus said a final decision on technology would be made later.

The cost will represent a capex equal to between 10 and 11 percent of Optus mobile revenues over the next three years and will take Optus total capex on 3G to between $1 and $1.3 billion by 2010.

The network will cover an area of around 650,000 square kms. The rollout will commence in the larger regional cities such a Newcastle, Bendigo, Ballarat and Newcastle at 2100MHz. A decision on 900MHz will be made later this year.

There are about 54 networks around the world using 2100MHz, according to Optus while 900MHz is in the development stage. France Germany and the Netherlands are all seeking to deploy 3G at 900MHz an Vodafone NZ has been trialling it.

"This will bring competition in 3G mobile to the vast majority of the population, Optus CEO, Paul O'Sullivan said. "Significantly more customers will now have a choice of which operator they look to for competitive 3G broadband services. Effectively we are liberating the 45 percent of Australians who live outside capital cities and major metropolitan areas by giving them a competitive 3G service."