Telecom New Zealand Wins Bidding for Last Block of Radio Spectrum.
Published on: 21st Jan 2014
Note -- this news article is more than a year old.
Telecom New Zealand has won the bidding to secure the last remaining block of 2x5 MHz lot of 700 MHz radio spectrum that was left unsold from last year's auction.
Telecom bid NZ$83 million for this final lot, in addition to the total of NZ$66 million for three lots in the initial auction round. The purchase of a fourth 2x5 MHz lot is conditional upon approval from the Commerce Commission.
In the first round of the auction last October , Telecom and Vodafone each successfully bid for 2x15 MHz (three lots), while 2Degrees successfully bid for 2x10 MHz (two lots) leaving a single 2x5 MHz lot unsold from the available nine lots.
The auction for this lot has proceeded over recent weeks at $1 million increments for each bidding interval, starting from the $22 million reserve price.
Telecom said that the significant price premium over the reserve price reflects what it said would be the customer benefits that this additional fourth lot will provide to Telecom's mobile network in future years.
A final assignment process, during which each successful bidder will bid for a location within the spectrum band, is still to be held.