Video | Business Headlines | Internet | Science | Scientific Ethics | Technology | Search

 

Ihug Abandons Failed Auction

27 November 2000

Ihug has today (Monday 27th) withdrawn from the Government's 2G and 3G spectrum auction.

The company has decided to abandon the auction following continued frustration over serious flaws in the auction rules and process.

Ihug Director Nick Wood says a 'window of opportunity' has been lost because of the inadequacies.

"The spectrum auction has staggered on for more than four and a half months," he says.

"Had it been established on the basis of fair competition from the start, we would not be left stranded with a stalled bidding process.

"Ihug was among those who made clear submissions on this issue. Those early warnings were ignored, to the detriment of all involved."

Mr Wood says the real advantages of rapidly launching a competing 2G network are fast disappearing.

"Telecom is now four months closer to the launch of their CDMA network and the whole world is edging closer to the commercial availability of 3G network services," he says.

"The Ministry's strategy of increasing the number of rounds per day, and high incremental bids, has done nothing to help bring the auction to a close.

"Moving the auction to one clear round will still not prevent placement of one bid on a fixed link every round for 1000 rounds without repeat bidding."

Ihug - New Zealand's second largest Internet service provider - today confirmed it is now pursuing new options. The company has not ruled out the possibility of new joint partnerships.

ENDS

*In July this year, Ihug mounted a legal challenge against the spectrum auction, claiming the Government had backtracked on earlier assurances that the auction would not be anti-competitive.

Ihug's main concern focused on the Government's failure to implement any second generation (2G) spectrum protections in the upcoming auction process.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>