The auction of 4G spectrum in New Zealand, launched in October, has come to a close after the successful bidders were assigned their respective frequencies within the 700 MHz band.
Telecom New Zealand and rivals Vodafone, a subsidiary of the UK-based…
The auction of 4G spectrum in New Zealand, launched in October, has come to a close after the successful bidders were assigned their respective frequencies within the 700 MHz band.
Telecom New Zealand and rivals Vodafone, a subsidiary of the UK-based Vodafone Group, and 2degrees all won spectrum in the October auction.
Like the incumbent, Vodafone paid NZ$66m for three blocks of 2×15 MHz, while 2degrees received two lots of 2×10 MHz at a price of NZ$44m.
Telecom NZ later paid an extra NZ$83m to acquire an additional lot of 4G spectrum.
The communications ministry said that while Telecom NZ has bought the largest portion of the spectrum, “as a result of this assignment, 2degrees and Vodafone will occupy adjacent frequencies. This preserves for them the ability, if they so choose, to negotiate a 4G roaming agreement”.
Overall, the government has raised NZ$270m (US$235.6m) from this auction. The cost of clearing the spectrum was NZ$147m (US$128.3m).
The 700 MHz band has been freed up for new uses following the switchover to digital television. By using the spectrum for 4G mobile networks, New Zealand expects economic benefits of up to NZ$2.4bn (US$2bn) for the country over the next 10 years.
Communications minister Amy Adams stated that 90% of New Zealanders will have access to 4G services by 2019 and that 75 new towers will be built to increase mobile coverage.
Rollout conditions also include the necessity for operators to upgrade at least 75% of their existing rural 2G and 3G mobile infrastructure to 4G capability within five years.
