New Zealand Wireless Auction Raises NZ$133m

date: 19th January 2001, source: Newsbytes

The main part of the New Zealand Government's auction of licenses to provide mobile phone services is finally over, raising only NZ$133 million (US$59.89 million).

The auction, delayed numerous times and speeded up by some rule changes at the end of last year, decides which companies will take licenses to provide second and third-generation mobile phone services in New Zealand.

A clear round today closed the auction, with total bids of NZ$133 million ($59.89 million).

Telecom New Zealand, Clear, Vodafone, and Telstra Saturn have extended their second-generation spectrum holdings. New player Northelia also won a license to offer mobile phone services.

Third-generation spectrum, for future wireless services, was also taken by the big four - Telecom New Zealand, Clear, Vodafone and Telstra Saturn.

While the auction of this public resource was not the huge government revenue-raising exercise it has been in some countries, Information Minister Paul Swain said New Zealanders would benefit from lower prices when the telcos sell services back to the public.

"The prices achieved mean good news for consumers," he said. "Low prices, compared to those obtained overseas, will ultimately benefit consumers."

Incumbent fixed line carrier, Telecom New Zealand, paid NZ$37.6 million ($16.94 million) for its 2G and 3G licenses. The company's current wireless focus is code division multple access (CDMA) - it does not expect to roll out 3G services any time soon.

Vodafone New Zealand - one of two major mobile network operators with Telecom - also obtained a 3G license. Vodafone has already upgraded its GSM mobile network with GPRS (General Packet Radio Services) and is expecting to roll out 2.5G services in several months. The company says there is a good chance it will be the first to roll out 3G service using wideband-CDMA.

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