The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Wednesday.
This follows the release of an announcement by the telco giant this morning.
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Why is the Telstra share price on watch?
Investors may want to keep an eye on the Telstra share price today after it released an announcement relating to mobile spectrum.
According to the release, Telstra has invested $616 million to secure 2x10MHz in the Australian Communications and Media Authority's 850/900 MHz band auction.
This represents the maximum amount of low band spectrum Telstra was allowed to bid for under the competition limits set by the Government.
The telco giant believes this is a win for its Telstra customers, especially for the people, businesses and communities of regional and rural Australia.
Telstra's Chief Financial Officer and Group Executive, Strategy & Finance, Vicki Brady, explained: "We now hold 2x40MHz of low-band spectrum in the major cities and 2x45MHz in regional and remote areas. This is more than any other carrier, which is important given our larger customer base, and will help us continue to provide the best mobile coverage and service."
"Mobile and wireless broadband are key components of a successful digital economy, and this low band spectrum will help us support Australia's digital economy ambitions which is critical to our nation's pandemic recovery. The spectrum is essential for carrying mobile data, particularly 5G, over the vast distances needed across regional and remote areas and also enables us to provide better coverage indoors and other difficult to reach places in metro locations," she added.
5G coverage expansion
At present, Telstra's 5G network extends to more than 4,000 sites across the country, reaching 75% of the population. This new spectrum will help the company meet its T25 commitment of providing 5G coverage to 95% of the population by 2025.
It also extends its lead over rivals by an unthinkable amount.
Ms Brady explained: "Over the seven years to end FY22, we will have invested $11 billion in our mobile network nationally with $4 billion of this invested in our regional mobile network. Because of this our mobile network now covers one million square kilometres more than any other telco – that's the size of New South Wales and Victoria combined."
But it won't stop there. Telstra advised that it will keep investing to ensure it maintained its leading mobile coverage and helped regional and remote communities fully participate in the digital economy.
Payment for the 20-year licences is not expected until shortly before they commence in mid-2024.
