Telecom New Zealand has paid NZ$83m (US$69m) to acquire spectrum left over from the nation’s October 2013 4G auction.
The NZ$83m price tag for the final 2×5 MHz of 700 MHz spectrum is higher than the NZ$66m (US$54.6m) the incumbent spent for three 700…
Telecom New Zealand has paid NZ$83m (US$69m) to acquire spectrum left over from the nation’s October 2013 4G auction.
The NZ$83m price tag for the final 2×5 MHz of 700 MHz spectrum is higher than the NZ$66m (US$54.6m) the incumbent spent for three 700 MHz frequency lots in the initial auction round. The purchase of the fourth lots is subject to the approval of regulator, the Commerce Commission.
The reserve price for the final lot was NZ$22m and rose NZ$1m at each bidding interval, representing a “significant price premium”, Telecom NZ said in a statement.
The auction’s final assignment process, which will see operators bid for a location within each spectrum band, is yet to take place.
Commenting on securing the extra spectrum, Telecom NZ CEO Simon Moutter said it will enable the company “to deliver a very high-performance 4G mobile network for New Zealand, including in less densely populated areas”.
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 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 nation’s smallest player, 2degrees, had 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 that selling the spectrum to Telecom or Vodafone would damage long-term competition in the market.
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