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

 


Telecom to Acquire Previously Unsold Radio Spectrum Block

Telecom Granted Clearance to Acquire Previously Unsold Radio Spectrum Block


The Commerce Commission has today granted a clearance to Telecom New Zealand Limited (Telecom) that will enable it to acquire the management rights for the final block of 5MHz radio spectrum in the 700MHz range from the Crown.

Spectrum in the 700MHz range is expected to be used in the provision of fourth generation (4G) mobile services. There are 45MHz available in the 700MHz range, which the Crown has sold management rights to by auction.

In the first round of the auction in October, Telecom acquired 15MHz, Vodafone 15MHz (the limit under first round auction rules) and 2degrees 10 MHz, leaving one block of 5MHz unsold. The auction rules provided for the Crown to sell the unsold block in a second round. Telecom won the second round of the auction over Vodafone in January this year.

In clearing this purchase the Commission had to be satisfied that Telecom’s acquisition of the spectrum will be unlikely to substantially lessen competition.

Commerce Commission Chairman Dr Mark Berry says the proposed placement of the unsold block (if not sold to Telecom), in a position that is not adjacent to 2degrees’ other spectrum holdings, was key to the Commission clearing Telecom’s acquisition.

“Current technology is unable to fully utilise non-adjacent blocks. Given the blocks are non-adjacent, it reduced the prospect of the Crown and 2degrees reaching an agreement on a sale. Even if 2degrees was to acquire the 5MHz block, 2degrees’ competitiveness in this space is not likely to be materially enhanced since the block is not adjacent,” said Dr Berry.

“Based on the proposed placement of the unsold 5MHz block, the Commission considers it unlikely that competition would be any greater if another mobile network operator bought the final block instead of Telecom, so we have cleared the purchase,” said Dr Berry.

A public version of the written reasons for the decision will be available shortly on the Commission’s website:http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/

Information on the assignment options/outcomes can be found at the following link:http://www.rsm.govt.nz/cms/pdf-library/policy-and-planning/current-projects/digital-dividend-auction-700mhz/700-mhz-auction-combinatorial-assignment-round-options-outcomes

Ends

© 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