Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Telecom pays $83 mln in winning bid for last 4G spectrum lot

Telecom pays $83 mln in winning bid for last 4G spectrum lot

By Paul McBeth

Jan 22 (BusinessDesk) - Telecom Corp, the country’s biggest telecommunications company, paid $83 million to win the final lot of 700 megahertz spectrum, flagged for fourth-generation mobile phone use.

The Auckland-based company secured the fourth 2x5 MHz lot, having spent $66 million on three lots of 2x15 MHz spectrum in the first auction, it said in a statement. Telecom and Vodafone were bidding for the final block of spectrum after Two Degrees Mobile bought two lots of 2x10 MHz lots during the first auction.

In effect, the deal sees Telecom paying close to a third more than its largest rival, Vodafone, for spectrum pairs, while locking out challenger brand 2Degrees, which sought a delay in sale of the last spectrum block in the current round.

“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,” chief executive Simon Moutter said.

“This demonstrates Telecom’s absolute commitment to being the leader in mobile and data network capability and provides a strong foundation for Telecom to continue to deliver world class mobile and data services to New Zealanders across the country,” he said.

The winning bid means the government raised $259 million from the auction of the spectrum, which became available as a result of the switchover to digital television from analogue.

The government put a minimum reserve price of $198 million for the spectrum, something privately-held 2degrees said was a premium to the $157 million spent clearing the radio waves in the switchover of analogue television to digital and the $119 million valuation attributed to the spectrum by the Treasury.

While some 4G capability is already available on higher MHz spectrum, the 700MHz range is especially well-suited to pushing fast mobile broadband into rural areas because it requires fewer repeater stations to achieve coverage and into densely populated urban settings, such as commercial buildings.

As part of the auction’s conditions, the mobile phone operators will have to upgrade existing rural cell sites to 4G capability within five years and continue to expand their coverage. That’s to ensure at least 90 percent of the country has access to a 4G network within five years.

Shares in Telecom increased 0.2 percent to $2.39 today, and have gained 3.5 percent this year.

Both 2Degrees and Telecom had expressed concerns that the auction of a fourth round of spectrum would advantage deep-pocketed global player Vodafone.

Telecom’s purchase remains subject to clearance by the competition regulator, the Commerce Commission.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news