• Enjoy the freedom to innovate and grow your business


    [ad] With Microsoft Azure you have hybrid cloud flexibility, allowing your platform to span your cloud and on premise data centre. Learn more at microsoftcloud.com.

  • IT Admin: No Time to Save Time?


    [ad] Do you spend too much time patching machines or cleaning up after virus attacks? With automation controlled from a central IT management console accessible anytime, anywhere – you can save time for bigger tasks. Try simple IT management from GFI Cloud and start saving time today!

  • Free Forrester analysis of CRM solutions


    [ad] In this 25 page report, independent analyst house Forrester evaluates 18 significant products in the customer relationship management space from a broad range of vendors, detailing its findings on how CRM suites measure up and plotting where they stand in relation to each other. Download it for free now.

  • Great articles on other sites
  • RSS Great articles on other sites


  • Reader giveaway: Google Nexus 5


    We’re big fans of Google’s Nexus line-up in general at Delimiter towers. Nexus 4, Nexus 7, Nexus 10 … we love pretty much anything Nexus. Because of this we've kicked off a new competition to give away one of Google’s new Nexus 5 smartphones to a lucky reader. Click here to enter.

  • Featured, News, Telecommunications - Written by on Monday, February 20, 2012 10:42 - 10 Comments

    Optus buys Vividwireless for $230m

    news Australia’s number two telco Optus this morning revealed it would buy wireless broadband player Vividwireless from its parent the Seven Group, for a total cost of $230 million, in a move which Optus said will birth a new 4G mobile broadband network in Australia.

    Much of the asset base of Vividwireless is believed to have come from Unwired, which was acquired by Seven for about $127 million in late 2007, as its plan to conquer Australia’s mobile broadband market through using the burgeoning WiMax standard was rapidly coming undone through the encroaching popularity of third-generation mobile broadband networks launched by companies like Telstra, Optus and Vodafone. It had previously counted chip giant Intel among its investors.

    In a statement released this morning, Optus said the deal would eliver it access to up to 98Mhz of wireless spectrum in the 2.3GHz band — a band which was already used by “some of the world’s leading operators” to provide 4G services. 4G is a term used to describe the next generation of wireless broadband services, which will allow speeds up to levels such as 100Mbps — far beyond the current generation of 3G services.

    Optus said it planned to use this spectrum “to build a new 4G network using LTE-TDD technology”.

    “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,” said Optus. “It will be integrated with Optus’ 1800MHz network, which will be launched in Newcastle and the Hunter region of NSW in April 2012.”

    Paul O’Sullivan, Optus Chief Executive 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.”

    “Optus was born out of a desire to provide choice and competition to Australians for telecommunications services. Today’s announcement demonstrates our commitment to being a leader in 4G and in providing Australians with a range of high speed mobile services. This is an important step in our vision to lead the industry in customer experience by delivering relevant content and applications anywhere, on any device,” O’Sullivan said.

    Peter Gammell, Chief Executive Officer of 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 acquisition includes the transfer of Vividwireless’ operating businesses, customers, spectrum licences and existing wireless broadband network. Optus will also need to pay a substantial fee — estimated at $50 million — to the Australian Communications and Media Authority for the reissue of the spectrum. In a separate statement, Optus parent SinTel said the consolidated net asset value of Vividwireless based on its 30 June 2011 financial statements was approximately $11 million.

    Vividwireless will continue to provide services to its customers with Optus planning to migrate customers to the upgraded LTE network as rollout progresses.

    In a later statement issued by an Optus spokesperson in reply to questions from Delimiter, the company said that Vividwireless will continue to provide services to its customers post the acquisition, with Optus planning to migrate customers to the upgraded LTE network as rollout progresses.

    With respect to the issue of whether the new 4G network will be data-only or will also support mobile telephony, the statement said: “Like all current 4G networks it will initially be a 4G data network but we expect a rich ecosystem to develop with a variety of devices like smartphones etc being available.” The company noted that customers will be able to access both the 1800Mhz and 2.3Ghz spectrum bands, referring to the “integration” part of its original statement. Network vendors for the planned 4G rollout had not been finalised, as the Vividwireless transaction had not been completed, they said.

    The news comes as rival telcos Telstra and Vodafone have also been developing their 4G offerings. Telstra has already launched its fledgling 4G network in CBD areas, while Vodafone is still testing its offering in certain regions.

    opinion/analysis
    This acquisition appears to be almost purely about access to spectrum — spectrum which Optus needs to build out its 4G network and compete with Telstra. Vividwireless (and Unwired before it), was broadly unsuccessful in its business model of launching fixed wireless broadband services in Australia, and while the company has some customers, it’s not building any scale at any speed. The existing 3G mobile broadband networks have simply offered too much competition for the company to grow at any decent rate. It had to die at some point and this looks like that point.

    In addition, with this acquisition, it appears as if Optus has finally been able to convince its parent SingTel to unlock the purse strings for Australian acquisitions, if only in its core mobile market. This bodes well for Optus — it indicates that the company is becoming more flexible. Optus missed the acquisitions of AAPT, Internode, TransACT and more in the fixed broadband market. It can’t afford to keep doing so. Perhaps we’ll see a more active Optus in the near future.

    On a final note, I must add that I am disappointed that Optus didn’t hold a press conference this morning to announce the Vividwireless acquisition. In years gone by, for major company moves like this, Optus CEO Paul O’Sullivan would have fronted journalists and taken questions on the issue. Today, all we have is a brief media release issued unexpectedly in the dead of Monday morning. As a company, Optus is gradually becoming less transparent over the years, and that’s not a good thing.

    Image credit: Optus

    submit to reddit

    10 Comments

    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Daniel
      Posted 20/02/2012 at 11:39 am | Permalink |

      I seen this coming amile away Optus.
      Now Optus tell the pubic you have vendors in BTS hardware.?

      • Posted 20/02/2012 at 4:09 pm | Permalink |

        What does BTS stand for?

        • Ian
          Posted 20/02/2012 at 4:30 pm | Permalink |

          Base (Transceiver) Station. The electronics that go with a tower.

        • Daniel
          Posted 20/02/2012 at 6:20 pm | Permalink |

          @Renai LeMay Optus seem to have dumped NSN (nokia siemens networks) in flavour Huawei in rolling out SingleRan BTS gear.

    2. Ian
      Posted 20/02/2012 at 1:01 pm | Permalink |

      So Optus are doing FD-LTE at 1800MHz and 700MHz, and now they’re doing TD-LTE at 2300MHz as well? At least they’re not putting all their eggs in one basket, I guess.

      Good luck buying a device compatible with all three networks though.

      • Posted 20/02/2012 at 4:10 pm | Permalink |

        It is quite weird … but then Telstra attracted similar comments when it picked 850MHz in 2005. That’s why I’m waiting to see what happens here before I judge Optus too harshly ;)

    3. nonny-moose
      Posted 20/02/2012 at 2:04 pm | Permalink |

      its a bit confusingly written but if the Vivid network is TD then it would be kind of difficult to integrate “with Optus’ 1800MHz network, which will be launched in Newcastle and the Hunter region of NSW in April 2012.” if that network is FD.

      from one of the other stories about on the development, i think the plan is that vivid customers will be migrated over to Optus 4g services which suggests to me the vivid hardware wont be reused and the spectrum used to augment the existing 4g services. thats the kind of integration im expecting.

      whatever winds up happening, its a fairly big slab of spectrum, i dont know if its contiguous or whatever but going by the 4g trial reports ive seen so farit would pretty much work out to 4 20Mhz channels with either a small between channel buffer or the last 16 Mhz subdivided in some fashion. thats in addition to LTE spectrum Optus already hold. the purchase makes absolute sense as the speed you get on a 4g service has a direct relationship to how much spectrum is in the slice the tower/carrier affords you – one of the trials i recall had slices from 5 through 10 and up to 20 with the best throughput figures in the order of 40 mbit using the 20Mhz slice. might have been the Telstra trial….

      At any rate id suggest Optus seem to be gearing up to take on Telstra, having learned something from the way Next G ran away with the show due to speed and coverage, they wont want a repeat so the next generation of mobile services is likely going to be an interesting one to watch. if they are really going on the acquisition trail thats just more reason to be watching.

      • Mathew
        Posted 20/02/2012 at 3:56 pm | Permalink |

        Vivid effectively has the entire 2.3GHz band to itself, plus the 3.4GHz used for Unwired.

        No reason why FD and TD can’t be run together, there is already a network in Poland with both. And Sprint and Clearwire in the US will be doing the same. Vivid is currently WiMAX but their Huawei base stations can be upgraded to TD-LTE

        • nonny-moose
          Posted 20/02/2012 at 6:21 pm | Permalink |

          ahhh dint know about the Polish example. id thought it was a bit of an either or thing, but if they can coexist happily thats likely too. i did suspect that similar basestation hardware allowing an upgrade was a possibility too, forgot to mention earlier. That sort of deal certainly worked for Internode and iiNet, so its clear this has left Optus with a few ways to jump. mind you i would have thought a network with both TD and FD elements would have been more complicated to run, which is why i initially thought it was a pure spectrum play. having most of a band to itself is a pretty strong position to hold.

    4. FREDDY
      Posted 01/03/2012 at 9:38 pm | Permalink |

      does this mean optus will get rid of vivids plans?




    Get our 'Best of the Week' newsletter on Fridays

    Just the most important stories, one email a week.

    Email address:


  • Most Popular Content


  • Six smart secrets for nurturing customer relationships
    [ad] Today, we are experiencing a world where behind every app, every device, and every connection, is a customer. Your customers will demand you to be where they and managing customer relationship is the key to your business’s growth. The question is where do you start? Click here to download six free whitepapers to help you connect with your customers in a whole new way.
  • Enterprise IT stories

    • Greens claim NSW LMBR project turning into a disaster sydney

      The NSW Greens late last week claimed to have obtained documents showing that the NSW Department of Education and Communities’ wide-ranging Learning Management and Business Reform program, which involves a number of rolling upgrades of business administration software, was deployed before it was ready, with “appalling consequences for administrative staff, principals, teachers and students”.

    • NSW Govt trials inter-truck safety devices trucks-cohda

      The New South Wales Government has inked a contract with connected vehicle technology supplier Cohda Wireless, as part of a trial of so-called Cooperative Intelligent Transport Systems (C-ITS) which allow heavy vehicles to communicate directly with each other about their position on the road to help reduce road accidents.

    • Victoria finally kills $180m Ultranet disaster thumbsdown1

      The Victorian Government has reportedly terminated its disastrous Ultranet schools portal, which ballooned in cost to $180 million over the past seven years but ended up being barely used by the education stakeholders it was supposed to serve.

    • NetSuite in whole of business TurboSmart deal turbosmart

      Business-focused software as a service giant NetSuite has unveiled yet another win with a mid-sized Australian company, revealing a deal with automotive performance products manufacturer Turbosmart that has seen the company deploy a comprehensive suite of NetSuite products across its business.

    • WA Health told: Hire a goddamn CIO already doctor

      A state parliamentary committee has told Western Australia’s Department of Health to end four years of acting appointments and hire a permanent CIO, in the wake of news that the lack of such an executive role in the department contributed directly to the fiasco at the state’s new Fiona Stanley Hospital, much of which has revolved around poorly delivered IT systems.

    • Former whole of Qld Govt CIO Grant resigns petergrant

      High-flying IT executive Peter Grant has left his senior position in the Queensland State Government, a year after the state demoted him from the whole of government chief information officer role he had held for the second time.

    • Hills dumped $18m ERP/CRM rollout for Salesforce.com hills

      According to a blog post published by Salesforce.com today, one of Ted Pretty’s first moves upon taking up managing director role at iconic Australian brand Hills in 2012 was to halt an expensive traditional business software project and call Salesforce.com instead.

    • Dropbox opens Sydney office koalabox

      Cloud computing storage player Dropbox has announced it is opening an office in Sydney, as competition in the local enterprise cloud storage market accelerates.

    • Heartbleed, internal outages: CBA’s horror 24 hours commbankatm

      The Commonwealth Bank’s IT division has suffered something of a nightmare 24 hours, with a catastrophic internal IT outage taking down multiple systems and resulting in physical branches being offline, and the bank separately suffering public opprobrium stemming from contradictory statements it made with respect to potential vulnerabilities stemming from the Heartbleed OpenSSL bug.

    • Android in the enterprise: Three Aussie examples from Samsung androidapple

      Forget iOS and Windows. Today we present three decently sized deployments of Android in the Australian market on Samsung’s hardware, which the Korean vendor has dug up from its archives over the past several years for us after a little prompting :)

  • Enterprise IT, News - Apr 23, 2014 15:58 - 4 Comments

    Greens claim NSW LMBR project turning into a disaster

    More In Enterprise IT


    Blog, Telecommunications - Apr 24, 2014 14:00 - 11 Comments

    iiNet to splurge $350m on content, media

    More In Telecommunications


    Analysis, Industry - Apr 24, 2014 16:05 - 0 Comments

    Free to fail: Why corporates are learning to love venture capital

    More In Industry


    Blog, Digital Rights - Apr 23, 2014 12:57 - 35 Comments

    Cinema execs blame piracy for $20 ticket prices

    More In Digital Rights