Report Overview

Mobile Blackspot Programs: Telstra likely to be the future winner (again)

The Commonwealth Government and States have funded four rounds of blackspots resulting in 1,047 new base stations.

In March 2019, the Government announced two more blackspots rounds with total federal government funding of $160 million.

Similar to the previous rounds, we expect the majority of total state and federal funding to go to Telstra. However, there are still bidding concerns for the rounds.

Mobile Blackspot programs have been a feature of the Australian mobile industry since the Round One blackspot program was announced by the Department of Communications in December 2014.

Since then the Government has funded four rounds of blackspots resulting in 1,047 new base stations across Australia with $220 million of federal government funds and a total investment of $760 million across the government, states, mobile network operators and some local councils.

On 20 March 2019, the Government announced a further $160 million of funds to eliminate more mobile black spots across two funding rounds (5 & 6). Interestingly, these next two rounds will have a strong focus on improving mobile coverage in at Public Interest Premises which benefit the community such as medical facilities, schools and economic centres.

Contents

Key takeaways

Mobile Blackspot Programs

• Introduction
• Results of previous rounds
• Investment Incentives
• Investment Criteria
• Bidding Assumptions and Challenges

List of charts/tables

Figure 1. Total Base Stations Across Rounds 1 – 4

Figure 2. Total Base Station Funding After Round 4

Figure 3. Importance of Mobile Factors at Next Purchase

Figure 4. Round 5 & 6 Funding Estimates