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

 


Telecom cleared to buy last 4G spectrum lot

Telecom cleared to buy last 4G spectrum lot

By Paul McBeth

May. 30 (BusinessDesk) - Telecom, the second-biggest mobile phone operator, has been cleared to buy the final lot of 700 megahertz radio spectrum, flagged for fourth-generation mobile use.

The Commerce Commission approved the sale, saying Telecom's acquisition was unlikely to substantially lessen competition because the unused block wasn't placed next to Two Degrees Mobile's other band-width holdings, meaning the third mobile operator wouldn't gain much of an edge if it held the extra lot. Commission chair Mark Berry said the government's proposed placement of the unsold block in a position not adjacent to 2degrees was key to clearing Telecom's acquisition.

The band-width allocations were announced last Friday by Communications Minister Amy Adams.

"Given the blocks are non-adjacent, it reduced the prospect of the Crown and 2degrees reaching an agreement on a sale," Berry said. "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."

The Ministry of Business, Innovation and Employment said the lot was placed between Telecom and Vodafone to let the government fulfil its commitments under the auction rules.

Telecom bought the fourth 2x5 MHz for $83 million in the second round of a government auction, having secured three lots of 2x15 MHz spectrum for $66 million in the first round. Vodafone missed out on the fourth lot, having bought three 2x15 MHz lots for $66 million in the first round. 2degrees bought two lots of 2x10 MHz spectrum for $44 million.

If Telecom wasn't cleared to acquire the spectrum, MBIE told the regulator the Crown would consider allocating the block for other uses ahead of a possible sale to 2degrees, though any decisions about the use wouldn't be made until after the September election.

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, having 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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news