Optus buys 4G co. Vividwireless for $246.5 mn

SINGAPORE CITY, SINGAPORE: Singapore telecommunications firm SingTel's Australian subsidiary Optus Mobile announced that it has entered into a conditional agreement to acquire Vividwireless Group Limited, which operates under the vividwireless and unwired brands, from Seven Group Holdings (SGH), for $246.5 million.

Through the acquisition, Optus will also gain access to up to 98MHz of spectrum in the 2.3GHz band. Optus plans to use this spectrum to build a new 4G network using LTE-TDD technology.

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This new network will deliver wireless broadband to households and businesses in metropolitan Australia with typical download speeds ranging from 25Mbps to 87Mbps — twice as fast as existing competitive 4G services, claims the company in a release.

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.

Paul O’Sullivan, chief executive, Optus, said “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. By integrating it with our current 4G rollout (in the 1800MHz band), we will be able to provide increased mobile speeds to our customers in metropolitan Australia.”

Peter Gammell, chief executive officer, Seven Group Holdings, said, “We are proud of our achievements with Vividwireless. For Seven Group Holdings this sale recognises value for the investment we’ve made in Vividwireless. Optus’ expertise will allow the business to grow into the future and take the pioneering work we’ve done in 4G to the next level.”

The successful completion of the transaction is subject to a number of conditions, including the reissue of Vividwireless’ 2.3GHz spectrum licence and approval from the ACCC and FIRB.