Incumbent Telecom New Zealand has received approval from the country’s Commerce Commission to buy an additional lot of 4G spectrum.
Early this year, the operator paid NZ$83m (US$69m) to acquire 700 MHz spectrum left over from the October 2013 4G…
Incumbent Telecom New Zealand has received approval from the country’s Commerce Commission to buy an additional lot of 4G spectrum.
Early this year, the operator paid NZ$83m (US$69m) to acquire 700 MHz spectrum left over from the October 2013 4G auction.
But the nation’s smallest player, 2degrees, had previously asked the government not to sell the remaining spectrum until it learned the outcome of a planned review of the telecoms market.
CEO Stewart Sheriff argued in November that selling the spectrum to Telecom NZ or number one Vodafone would damage long-term competition in the market.
In a statement today, Telecom NZ said it is now the only mobile operator with four lots of 700 MHz spectrum.
“This fourth lot puts Telecom in the best position in the market to deliver a very high-performance 4G mobile network for New Zealand, including in less densely populated areas,” the incumbent CEO Simon Moutter said in a statement.
Telecom NZ 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 (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).
The auction’s final assignment process, which will see operators bid for a location within each spectrum band, is yet to take place.
The 700 MHz spectrum 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 twenty years.
Rollout conditions 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. The aim is to ensure that at least 90% of New Zealanders have access to 4G by 2018.
Separately, Telecom NZ is expected to close imminently the sale of its 60% stake in its Cook Islands unit to Digicel for NZ$23m (US$20m).