Auction will ensure broadband competition

Media release: 12 June 2007

WiMAX spectrum auction will ensure broadband competition - Woosh

Woosh Wireless Ltd believes that the Government's plans to auction six blocks of WiMAX spectrum (2.3 and 2.5 bands) will ensure the emergence of true infrastructure competition in broadband.

Woosh Wireless, the current leader in Wireless broadband and phone services in New Zealand, are well positioned to take advantage of the WiMAX spectrum auction to be held in December 2007.

The auction rules due for release in August will likely see 6 blocks of spectrum available, preventing large players from using market power to shut out new entrants.

Woosh applauds the Governments decision to ensure that no single player will be able to buy more than one 30 MHz block of spectrum, thereby ensuring competition.

Woosh believes the success of the auction and the eventual success of the operators that take up the WiMax opportunity will depend on the fine-tuning of the auction rules. Specific provisions Woosh is seeking include a time bar on the 30 MHz acquisition limit after which spectrum licences could be traded and/or consolidated on a secondary market provided competition guidelines are met.

“We believe this would ensure spectrum rights are used effectively,” Chairman, Rod Inglis said. “Consolidation of blocks may be required to ensure viable networks are built that meet customers growing demand for bandwidth. Everyone is keen to see a competitive network built and we hope that the final provisions of the spectrum auction help facilitate this.”

Woosh is well positioned to take advantage of WiMAX spectrum with its network of 150 cell sites and transmission network in Auckland, Wellington, Christchurch, and the Southland Region as well as an existing customer base of over 32,000 subscribers.

In addition, Woosh has accumulated spectrum in the 2.3 band and has been working with the MED to ensure that this spectrum can be put to good use. Woosh is in a position to quickly fund and build the network to provide exciting new WiMAX services to customers.

ENDS

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