Home Industry Market Telstra to raise a billion Euros to fund spectrum auction
Telstra to raise a billion Euros to fund spectrum auction Featured
Get all your tech news delivered to your mail box five days a week
iTWire UPDATE - it's FREE!

Telstra has gone to the Eurozone to raise more than a billion dollars. It seems the money will be used to buy more spectrum in next month’s Digital Dividend auction.

In a brief two line statement to the Australian Securities Exchange, Telstra has announced a ‘benchmark’ €1 billion ($1.275 billion) ten year bond issue. The bonds will attract a tiny 2.50% interest rate and mature on 15 September 2023.

Telstra says the bond issue is part of its ‘debt financing program’. The Sydney Morning Herald reports Telstra spokesman Scott Whiffin as saying that it would be used for “general corporate purposes”, which may include funding the purchase of more spectrum.

“We may predominantly finance spectrum through debt in the first instance,” Whiffin said. He was referring to the Government’s auction of extra spectrum freed up by the end of analogue TV transmissions, which stop in December this year. He was confirming what CFO Andy Penn said in announcing Telstra’s recent half year financial results, when he indicated that Telstra would use debt to fund spectrum purchases.

The Government hopes to make more than $3 billion from the so-called ‘Digital Dividend’ auction. Telstra’s bond issue will account for nearly half that, and further consolidate its market dominance.

The auction has become a contentious issue – Vodafone has said that it may not take part, and Optus has criticised the pricing and the process. Communications Minister Stephen Conroy has taken personal charge of the process, taking it out of ACMA’s hands.

In the context of Telstra’s overall financial position it is not an enormous amount of money. It is equal to about two weeks’ revenue, or one third of the company’s annual profits.


Tomorrow, 26 August we’re delivering a FREE day of high-impact content to give you the know-how to lead in the App Economy. Please don’t be sorry you missed it.

• Keynotes on how software is rewriting businesses the world over, including our own backyard

• View code level details with context and repair problems quickly

• Fix problems in minutes before they wreak havoc

• Streams covering DevOps, Security and Management Cloud from pioneers at the coalface.

Register Now - it's FREE!



Where are your clients backing up to right now?

Is your DR strategy as advanced as the rest of your service portfolio?

What areas of your business could be improved if you outsourced your backups to a trusted source?

Read the industry whitepaper and discover where to turn to for managed backup


Graeme Philipson

Graeme Philipson is senior associate editor at iTWire and editor of sister publication CommsWire. He is also founder and Research Director of Connection Research, a market research and analysis firm specialising in the convergence of sustainable, digital and environmental technologies. He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.


Displaying dp_logo_transparent.png