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OPTUS will invest on 3G spectrum licences to increase its share in Australia’s market for mobile broadband services.  

The deal, once approved by Foreign Investment Review Board (FIRB) as well as cleared by the Australian Competition and Consumer Commission (ACCC), is expected to increase the data capacity on Optus’s 2100MHz paired spectrum holdings to 20MHz from the current 10MHz in eight capital cities.

Optus refused to divulge the financial outlay for the purchase.  In 2001, it acquired from Qualcomm its 10MHz of 2100MHz paired spectrum for $206 million. 3G Investments, a Qualcomm Incorporated subsidiary, will provide the 3G licenses. 

Andrew Buay, Optus’s Products and Delivery managing director, said that the additional capacity will be for the support retail as well as wholesale consumer demand for Optus’s various data services.

Telstra was disturbed by Optus's latest investments, saying that telcos that have not invested enough in infrastructure need to do so now or suffer from slow speeds or congestion.

Demand for 3G mobile broadband services have increased significantly in the previous year to reach over than two million subscribers, resulting from the heavy downloads to such devices as the iPhone.

Research data from the Australian Communications and Media Authority (ACMA) show a 162 per cent jump in the number of subscribers for wireless broadband services in 2008-09. On the other hand, demand for fixed-line telephone connection declined by 3 per cent.

According to the ACMA report, internet subscribers increased to 8.4 million from 7.2 million in the previous year. Subscribers for wireless broadband services accounted for 25 per cent of internet users, showing a significant increase from the 11 per cent share in 2008.

In the year until September 30, 2009, Optus reported that its 3G services grew by 43 per cent to 3.08 million from 2.16 million, inclusive of the company’s mobile broadband subscribers which posted a 240 per cent increase to 688,000.