Extra 3G spectrum up for grab in New Zealand

date: December 23, 2001

An extra 5MHz of 3G spectrum is up for grabs in New Zealand after the Ministry of Economic Development gave an approval for the acquisition of Clear Communications by TelstraSaturn in early December.

Both wireless operators won a 10 MHz block (paired) 3G spectrum in the 3G auction back in January. However under the Government rules, no operators should own more than 15MHz to ensure no unfair advantages of one operator over another.

The acquisition of Clear by TelstraSaturn means TelstraSaturn will now have 20MHz and therefore violated the auction rules. Under the agreement terms, the company will have to either sell the extra 5MHz spectrum or handed back to the Government.

Expert advice indicates that 15 MHz (paired) is the minimum amount that an operator would need to implement a full national 3G cellular mobile network. The specification of the cap at 15 MHz means that the auction of relevant management rights will potentially allow four players to compete in the provision of 3G services.

Both companies spent a total of US$21.2 on the 3G spectrums and a 5MHz block is expected to sell for US$2million.

Currently no bidders came forward, however Vodafone would be the likely bidder as it only bought 10MHz.

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last updated: January 12, 2004

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