AusBN - Internet provider TPG Telecom (ASX:TPM) has announced it plans to spend AUS$1.9 billion on building its own network, the fourth of its kind in Australia.
TPG will join a competitive Australian mobile market, with Telstra, Optus and Vodafone currently leading the industry, each providing their own network services.
The company has already spent $1.26 billion for premium mobile broadband spectrum in a government auction, and will now invest another $600 million into constructing a network that will cover 80% of the population.
TPG, Australia’s second largest fixed-line internet provider behind Telstra, has expanded in the last decade via a merger with SP Telemedia in 2008 and takeover of iiNet in 2015.
Executive chairman David Teoh said: “[the spectrum acquisition is a] tremendous development for the long-term future of TPG.
"We are uniquely positioned to leverage our success in the Australian fixed-line broadband market to drive the next phase of growth for TPG's shareholders and bring new competition to the Australian mobile market."
The construction of TPG’s mobile network will commence in 2018, and is set to be made available to the general population two to three years later.