3G Shutdown endangers Triple-0 Calls | Dirt Report

Singtel rules out an Optus sale

Singtel, the Singapore-based telecommunications operator that owns Optus, has denied reports that it was considering a deal to sell a stake in the Australian operator. The reports followed speculation about a potential investment involving Canadian company Brookfield, reportedly valued at $12 billion.

Singtel sought a trading halt after its shares fell, and later reiterated that there was no Optus investment deal on the table. Brookfield declined to comment. The discussion has nevertheless prompted questions about Optus’s future, including whether the business may undergo an internal shake-up, cost cutting or mobile plan price increases.

An analyst cited in the report said Optus’s return on invested capital was too low to monetise at present, suggesting that improving the business could be preferable to selling a stake. Optus is one of Singtel’s largest overseas investments, so developments involving the Australian operator can affect the wider company.

Aussie Broadband sells down its Superloop stake

Aussie Broadband’s attempt to build a larger position in Superloop has also come to an end, at least for now. After acquiring more than 12% of Superloop, Aussie Broadband was directed to reduce its holding to comply with requirements associated with Superloop’s operations in Singapore.

Aussie Broadband sought an injunction on 19 March 2024 to retain its full 19.9% stake, but the court dismissed the application. On 1 April, the company agreed to sell 37,625,003 shares at $3 per share. An ASX announcement dated 2 April said this reduced its holding from 19.9% to 11.9%.

The remaining stake was described as strategically significant because holding more than 10% can prevent compulsory acquisition if another shareholder reaches the relevant 90% threshold. The sale therefore reduced Aussie Broadband’s position while leaving it above 10%.

3G shutdown raises Triple-0 concerns

Vodafone was the first Australian operator to begin shutting down its 3G network, starting in December 2023 and progressing region by region. Telstra and Optus announced plans to begin their own shutdowns in June and September 2024 respectively. By the end of 2024, 3G was expected to be gone from all three networks.

Analysis from Opensignal found little to no disruption to Vodafone’s mobile broadband services during the shutdown. The spectrum released by the closure is being repurposed for 5G, including Vodafone’s 2100 MHz and 900 MHz spectrum. This is intended to make 5G deployment more economical and improve existing network capacity.

However, mobile broadband performance is not the only concern. Some older 4G phones do not support voice over LTE, also known as VoLTE. Once 3G is switched off, those devices may be unable to make emergency Triple-0 calls, creating a serious safety issue even if mobile data performance improves. The transcript also notes that some users still rely on 3G coverage in areas where 4G service is limited.

Inquiry timing

The issue has been referred to a Senate inquiry through the Rural and Regional Affairs and Transport References Committee. Its report was not scheduled until 30 November 2024, after the shutdowns were due to commence across all three networks. The inquiry is intended to examine potential problems for users with older 4G devices and other effects of the planned closure.

Opensignal’s analysis also reported improvements for Vodafone users since August 2023, including higher average download speeds on overall and 5G networks, along with more modest upload speed improvements. These results relate to network experience and do not remove the need to address emergency calling compatibility.