Telstra was the highest bidder, putting down $1.302 billion, purchasing 40 MHz of the 700 MHz band and 80 MHz of the 2.5GHz band.
Optus spent $649.1 million on 20 MHz of the 700 MHz band and 40 MHz of the 2.5 GHz band.
TPG was the surprise bidder, purchasing 20MHz of the 2.5 GHz band for $13.5 million.
The spectrum enables telecommunications carriers to deploy next generation of wireless broadband technologies, including Long Term Evolution (LTE) or 4G.
Communications minister, Senator Stephen Conroy, said 15MHz paired of the 700 MHz spectrum, which is worth about $1 billion, will remain in the Commonwealth's hands for now, with the intention to return it to the market in the next two or three years.