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TPG targets Telstra, Optus & Vodafone with its own mobile network

The ISP is forking out a cool AU$1.9 billion to build a network that will cover 80 percent of the Australian population.


TPG wants to be your mobile provider, and it's spending AU$1.9 billion to prove it.

The internet service provider has previously sold SIM-only data plans, but it had to rely on Vodafone for physical infrastructure.

That's all going to change, after TPG successfully won a bid at Australia's recent spectrum auction. TPG spent $1.26 billion to secure 2x10MHz of mobile spectrum on the 700MHz band (previously occupied by free-to-air TV).

While that's a lot of niche spectra talk for the average person (we've done a handy guide on 4G technologies if you're interested), it means TPG will soon be a serious player in mobile. And Telstra, Optus and Vodafone will be taking notice.

TPG will pony up the AU$1.26 billion over three yearly installments, spending a further AU$600 million on network rollout, to eventually serve 80 percent of the Australian population.

CEO David Teoh said TPG's success in fixed-line broadband meant it was well positioned to bring more competition to the mobile market.

"We believe that our mobile strategy will be complementary to our ongoing fixed line business, with the ability to bundle mobile and fixed services," he said.