"The 900MHz range for 3G/HSPA is perfectly suited to the Australian landscape. Using this frequency, radio signals have a greater range – giving better quality and wider coverage across sparsely populated rural and remote areas as well as an enhanced depth of coverage.
"The greater breadth of coverage generated by a 900MHz 3G/HSPA base station makes it better able to cater to areas that until now have had limited choice and limited network access. This also translates into cost efficiencies as fewer base stations are required to cover the land mass between locations.
"3G/HSPA network operators around the world are increasingly shifting to the 900 MHz frequency range, meaning that handsets and network equipment will be produced in high volume in this configuration, leading to cost efficiencies and bringing value to rural and regional Australia.
"Additionally, the use of 900MHz and 2100MHz for 3G/HSPA will give the network greater alignment with other mobile markets, as many European and Asia Pacific countries are currently either considering, or are already using, the technology. The two frequencies will inter-operate seamlessly," Mr O'Sullivan said.
The combination of 900MHz and 2100MHz will lead to network rollout costs of up to A$500 million instead of up to A$800 million if built entirely at 2100MHz. The build will be funded out of Optus' normal annual investment program.
Optus will continue to co-locate its existing 2100MHz 3G network in metropolitan Australia in a joint venture with Vodafone.