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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news