The New Zealand government plans to auction the 2×5 MHz block of 700 MHz spectrum unsold in its October 4G auction, despite objections from smallest player 2degrees.
The country’s three mobile operators – Telecom, Vodafone and 2degrees – all won…
The New Zealand government plans to auction the 2×5 MHz block of 700 MHz spectrum unsold in its October 4G auction, despite objections from smallest player 2degrees.
The country’s three mobile operators – Telecom, Vodafone and 2degrees – all won spectrum in last month’s auction.
Specifically, Telecom and Vodafone successfully bid NZ$66m (US$54.6m) for three blocks of 2×15 MHz, while 2degrees received two lots of 2×10 MHz at a price of NZ$44m (US$36.4m).
Telecom and Vodafone have both applied to the Commerce Commission for clearance to buy 2×20 MHz in total, the government said in a statement.
Telecom, Vodafone and 2degrees are all registered and eligible to participate in the auction for the remaining spectrum, set to begin on 26 November. The reserve price has been set at NZ$22m (US$18.3m), plus tax.
In October, 2degrees CEO Stewart Sheriff called upon the government not to sell the remaining spectrum before learning the outcome of an upcoming telecoms market review. He argued that selling the spectrum to Telecom or Vodafone would damage long-term competition in the market.
Under the auction terms, bidders who win three lots of spectrum must build at least five new cell sites a year for five years. Bidders winning four lots will have to build 10 new sites a year for the same period.
Auction conditions are designed to ensure at least 90% of the population has access to a 4G network and faster broadband coverage within five years.
