New Zealand to Get a 3rd Mobile Network
New Zealand is set to get a third mobile operator - to compete with incumbents Telecom New Zealand and Vodafone - after the two operators agreed to release some of their radio spectrum to the new entrant. The decision to release the spectrum was a condition for the government to renew the operators existing licenses for another twenty years from 2011/2012.
Both companies have now completed the sale of spectrum to the new entrant, NZ Communications.
Commenting on the news, Communications and Information Technology Minister David Cunliffe said, “This is good news for New Zealanders. Not only does acceptance of the offers mean that New Zealanders will have cellular services for years to come but the sale of spectrum to a third company will help to launch a third network player in New Zealand.
“A new mobile player will give consumers more choice and provide more competition in the market. It also gives cellular operators greater certainty to invest in new infrastructure and bring the latest mobile technology to the market,” said Mr Cunliffe.
A case-by-case review of the 800 MHz and 900 MHz bands had previously identified that Telecom and Vodafone had sufficient spectrum and were not fully or efficiently utilising their allocations. The value of the spectrum sold was a total of NZ$106 million (US$81 million).
The Mobile World notes that the country ended last year with a population penetration level of around 105%, so the new entrant will have to largely cannibalise customers from the two incumbents.
Posted to the site on 15th May 2008
