Unwired Australia has struck up an agreement with Allco Finance for a $15.7million secured loan to finance the Austar spectrum swap deal.
The medium-term loan will enable Unwired to enter into the spectrum swap arrangements with Austar, giving Unwired the important 2.3GHz and 3.5GHz licences in most of the major metropolitan centres in Australia, without any impact on the Sydney business.
The WiMax-enabled 2.3GHz and 3.5GHz spectrum licences will let Unwired focus on the introduction of wireless broadband in Sydney, Newcastle, Melbourne, Geelong, Canberra, Brisbane, Adelaide and Perth.
Unwired's coverage area will represents about two-thirds of Australia's population.
David Spence, Unwired CEO, said the funding gives the organization the flexibility to own the spectrum it needs in the areas of most interest in its build out.
"Instead of spending $50 million to acquire the 2.3GHz spectrum nationally, with the spectrum swap we are able to concentrate on the centres of population to build the scale of business we want for only $15 million, thereby decreasing our future funding needs for roll-out in other metropolitan markets," Spence said.
"It also removes the annual $3 million 2.3GHz spectrum lease cost we are incurring."