Government declares 2021 as 'Year of 5G'

Two 5G spectrum auctions are scheduled for next year. Is this good news for ASX-listed companies like Telstra and TPG Telecom?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Federal Government announced on Wednesday not 1 – but 2 – 5G spectrum auctions for next year.

Communications Minister Paul Fletcher revealed that high-band 5G spectrum (26GHz) would be sold off in April, while low-band (850-900MHz) would be auctioned sometime in the second half of 2021.

Mid-band spectrum was sold in late 2018.

"We are making the low, mid and high bands available so that the telcos can provide better, faster and stronger 5G in Australia," said Fletcher.

"Low band spectrum can carry the 5G mobile signal longer distances, and is best for wide coverage indoors and outside. The mid band spectrum provides broad coverage and fast speeds and the high band spectrum will allow blazing fast speeds over shorter distances."

The government thus declared 2021 as the 'Year of 5G'. 

It forecasts 5G technology will add up to $2,000 in gross domestic product for each Australian after the first decade.

5G's current state of play in Australia 

Telstra Corporation Ltd (ASX: TLS) and rival Optus – owned by Singapore Telecommunications Limited (SGX: Z74) – already operate 5G mobile networks in limited areas.

Third player TPG Telecom Ltd (ASX: TPG) has thousands of locations in the planning phase. It plans to cover Australia's 6 largest cities by the end of next year.

Telstra shares were down 1.09% on Wednesday, to sit at $2.73 at close of trade. TPG was down 0.99% at $7.00.

Fletcher said 5G was important not just for faster mobile and broadband speeds but it would enable use cases like "smart farming, robotics, telemedicine and automated vehicles".

"The sooner 5G is deployed, the sooner Australia can secure these benefits," he said.

For a given area, 5G can connect 10 times the numbers of devices as a 4G network. This is why it can better accommodate "internet of things" devices such as agricultural sensors and remote controls for vehicles.

Should you invest $1,000 in Woolworths Group Limited right now?

Before you buy Woolworths Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woolworths Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Communication Shares

Why are News Corp shares trading 4% higher today?

Investors respond to News Corp’s quarterly results announcement.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Communication Shares

Why this expert is calling time on Telstra shares

A leading expert forecasts tougher times ahead for Telstra shares. Let’s find out why.

Read more »

man looks at phone while disappointed
Communication Shares

$10,000 invested in Telstra shares at Christmas is now worth

Should you have put $10,000 into the telco giant before the Christmas break? Let's find out.

Read more »

A woman sits on sofa pondering a question.
Broker Notes

Battle of the online classifieds: Should I buy Car Group or Seek shares?

Brokers rate both shares highly.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone.
Communication Shares

Telstra is rewarding its shares investors today

Here's how.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Communication Shares

$10,000 invested in Telstra shares 5 years ago is now worth…

Buying Telstra shares in March 2020 would have delivered some term-deposit-busting returns.

Read more »

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Communication Shares

TPG share price higher following ACCC decision

TPG shares are lifting on Thursday after the ACCC issued a statement regarding a proposed asset sale to Vocus Group.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.
Communication Shares

Are Telstra shares a good buy right now?

Should I buy Telstra shares today?

Read more »