Telecom applies to renew radio management rights

Telecom applies for clearance to renew radio spectrum management rights

The Commerce Commission has received an application from Telecom New Zealand Limited (Telecom) seeking clearance in relation to radio spectrum frequencies. Telecom is seeking clearance to acquire the management rights from the New Zealand Government for the radio frequency range between 825.015 and 840 MHz, together with the corresponding natural pair management rights in the 870.015 – 885 MHz range.

The relevant spectrum is for convenience called 850 MHz. Telecom currently holds management rights to this 850 MHz radio spectrum, along with radio spectrum management rights in a number of other bands. Telecom uses its 850 MHz spectrum to provide its current CDMA mobile services.

Existing rights to the 850 MHz radio spectrum (the first of which were granted in the early 1990s) are due to expire in 2012. On 9 November 2007, the Ministry of Economic Development, on behalf of the New Zealand Government, made an offer to Telecom for the renewal of its 850 MHz management rights for a further 20 years.

In considering the application, the Commission's role is to determine whether or not the acquisition is likely to have the effect of substantially lessening competition in a market.

A public version of the application will shortly be available on the Commission's website www.comcom.govt.nz under Public Registers.

Background
As part of the pre-settlement conditions required by the Ministry of Economic Development (MED), Telecom Leasing Limited must provide a statutory declaration specifying that the acquisition of the frequencies will not involve a breach of section 47 of the Commerce Act or they may apply for a clearance from the Commission Commerce. Clearance applications are voluntary under the Commerce Act.

On 14 February 2008, the Commission gave clearance to Vodafone Mobile NZ Limited for the renewal of its 900 MHz radio spectrum management rights.

More information about the Renewal of Cellular Rights can be found on MED's website at www.med.govt.nz/templates/ContentTopicSummary____19223.aspx

ENDS

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