Australia’s second-placed mobile operator Optus says it will invest a further AU$315 million (US$295 million) in building-out its HSPA-enabled 3G network in an attempt to match the 99 percent 3G network coverage achieved by market-leader Telstra. Optus, a wholly owned subsidiary of Singapore’s SingTel, announced last year it would pump AU$500 million into extending its network to 96 percent of the population, while the latest investment will see it add a further 2 percent coverage (to 98 percent coverage in total) and a further 750 new basestations by the end of next year. The new sections of the network will operate on 900MHz, allowing it to travel further in rural areas. “With this significant expansion we will be the only mobile carrier capable of challenging the incumbent’s [Telstra’s] network reach,” CEO Paul O’Sullivan said in a statement.

According to Australian newspaper The Age, Optus’ decision to increase its investment in 3G HSPA may be linked to the recent closure of Telstra’s CDMA network. Optus leased space on Telstra’s CDMA network on a wholesale basis but Telstra does not offer wholesale access on its new HSPA network (known as ‘Next G’). This means that Telstra’s network is the only option available to many citizens in rural parts of the country, the newspaper says. The two operators are also likely to compete on network speeds: O’Sullivan claims Optus’ network will be able to offer speeds as fast as 42Mb/s by mid 2010, while Telstra has said previously that Next G will achieve similar speeds by next year as part of its migration to HSPA Evolved technology. Third-placed operator Vodafone Australia has also committed to rolling-out HSPA to 95 percent of the population by year-end.