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New Zealand
last updated: December 23, 2001
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18th January 01:
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New Zealand's spectrum auction has finally drawn to a close, after
6 months.
The auction for both 2G and 3G spectrum has gained the Government
a $133m purse. Original estimates had put the figure between $50m
and $150m. It does however pale in comparison to the German and
UK auctions, but then most license allocations since have not raised
anywhere near as much. Despite the contest offering more spectrum
the market is much smaller, with a population of just 3.8 million.
Paul Swain, the Communications Minister, was upbeat about the totals
paid for spectrum, saying: "Low prices compared to those obtained
overseas will ultimately benefit customers".
Swain confirmed that the auction had concluded with a clear bidding
round. The final part of the auction, which is believed to be much
smaller would continue from 25th January, but it is not expected
to take anywhere near as long as the last one. New rules had been
introduced in an effort to speed up a conclusion to the first stage.
2G winners were: NZ Telecom, Vodafone, Clear Communications, Northelia
and Telstra Saturn. 3G winners were NZ Telecom, Clear Communications,
Telstra Saturn and Vodafone. Telecom paid $37.6m (US$16.7 million),
Vodafone paid $27.8m (US$13.2 million), Clear paid $25m (US$11.2
million) and Telstra paid $18.5m (US$10.3 million).
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December 8, 2001
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Communications Minister Paul Swain says the 2GHz spectrum auction
will be suspended until 24 hours after the government has announced
its response to the Ministerial Inquiry into Telecommunications.
Paul Swain said some bidders had indicated that the government’s
telecommunications decisions may affect the value of spectrum bids.
He noted that under current rules it was possible for bidders to
keep the auction going, so that bidding between now and the telecommunications
announcements could become increasingly meaningless.
“I expect to deliver the government's response to the Ministerial
Inquiry into Telecommunications in the week beginning 18 December,"
he said. “In the meantime, the Ministry of Economic Development
will consult with bidders on further changes to the auction rules
to bring the auction to a quick conclusion after it restarts," Paul
Swain said.
Round 380 of the auction concluded this afternoon with total bids
at $145m.
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November 24, 2000
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The Ministry of Economic Development announced today that it will
make four changes to the auction rules for the 2GHz auction.
From Monday, 27 November 2000:
- the auction will close after the completion of one clear round
(at present the auction closes following two consecutive clear rounds);
- the number of bidding rounds will be reduced from six rounds to
four rounds per day allowing bidders more time to consider their
bids in light of the one clear round rule;
- where a bid on a lot is withdrawn and the price for that lot falls
to the revealed reserve price, a high initial minimum bid shall
apply (this has the same effect as increasing reserve prices but
does not require changes to the auction software); and
- bidding increments on licence lots will be increased.
These changes were made following consultation with registered
bidders and are designed to speed up the auction, which has been
ongoing since 10 July 2000. A number of bidders have commented that
they consider the auction’s current pace too slow.
The Ministry of Economic Development will continue to monitor the
progress of the auction and will consider further steps if necessary
to bring the auction to a conclusion.
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July 13, 2000
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The auction of the 2GHz spectrum has been postponed pending the
Court of Appeal's decision on the appeals of the New Zealand Maori
Council and Mrs Rangiaho Everton. Their applications are set down
for hearing at 10 am today.
Announcing the postponement, Acting Communications Minister [Spectrum
Only] Michael Cullen said it would be irresponsible to proceed until
the Court had handed down its decision. "The auction concludes when
there are two clear bidding rounds. Round Six was clear. Had Round
Seven, which was due to begin today at 9am and end at 11am, also
been clear, the Secretary of Commerce would have been under a binding
contractual obligation to sell," Dr Cullen said.
"I am advised that the risk that it would be clear was low but
could not be entirely discounted and that, under these circumstances,
it was better and cleaner to postpone Round Seven until the legal
challenges had been dealt with."
Bidding will resume at 9am on the first working day after the Court
of Appeal has delivered its judgement, assuming the Court finds
in favour of the Crown. "If the finding is for the appellants, obviously
the Crown will comply with any order made by the Court," Dr Cullen
said.
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July 7, 2000
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This week the High Court dismissed an application by Maori to stop
the 2GHz radio spectrum auction due to start on Monday 10 July.
The Court found that there was no cause of action against the Government.
The Acting Minister of Communications Trevor Mallard has welcomed
the court decision.
"With this claim, and the previous claim by IHUG, being dismissed,
the auction of 2GHz spectrum is on track to start on Monday 10 July,
as planned," he said. "It is in the interests of all New Zealanders
that the auction proceed without further delay and I am pleased
to see that happening," he said.
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May 16, 2000
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The Acting Minister of Communications Trevor Mallard and Minister
of Maori Affairs Dover Samuels have today confirmed that a pan-Maori
trust would be given the exclusive right to purchase one of the
four blocks of third generation (3G) spectrum to be auctioned in
the forthcoming 2 GHz auction. The Government is taking this step
as part of its 'close the gaps' policy to assist Maori.
"This builds on Cabinet’s earlier decision that bidding in the
special block be restricted to those who could demonstrate a commitment
to involve Maori in the development of the spectrum," the ministers
said.
"Cabinet decided to go with the pan-Maori trust initiative after
talks with the Government’s Maori caucus, the New Zealand Maori
Council, iwi representatives and Waitangi Tribunal spectrum claimants,"
they said.
The trust will be required to pay for the special block at a price
equivalent to the average price of the other blocks, less a discount
of 5%.
"In addition, the Government will provide seed funding of up to
$5m to assist the trust through its establishment phase.
There will be no changes in previously announced competition safeguards
for the 2 GHz auction.
The government's auction of the 2 GHz spectrum will start on 10
July this year.
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March 1, 2000
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The Acting Minister of Communications Trevor Mallard has today
announced the government's auction of the 2 GHz spectrum will start
on 10 July this year.
"To address those competition issues we have decided to place a
cap on the amount of ‘third generation spectrum’ that can be acquired
by individual bidders in the auction.", said Trevor Mallard.
That means that no bidder will be able to purchase more than 15
MHz of spectrum in the third generation band (1920 – 1980 MHz) plus
its ‘natural pair’ (2110 – 2170 MHz). This cap will allow at least
four competitors to provide third generation mobile services.
In addition, the Government has decided that preferential bidding
access to one 15MHz block of third generation spectrum will be given
to those parties able to demonstrate some commitment to involve
Maori in the development of this spectrum.
"We will announce the criteria for who will be eligible to bid
for this spectrum at auction later," Trevor Mallard said.
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December 20, 1999
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The 2GHz auction scheduled for January 31 is to be postponed to
allow competition concerns with the auction to be addressed, the
Minister of Communications Paul Swain announced today.
"Part of the spectrum available for auction can support third generation
cellular technology," he said.
"When in opposition I expressed the concern that our competition
law (which will apply to the auction outcome) is not robust enough
to ensure that competition develops in these new technologies.
"Consequently, the auction will be delayed to allow further work
to be done on these competition issues.
"This work will be given high priority, with a new auction date
to be announced as soon as these competition issues are resolved.
"This is expected to be at the end of February," the Minister concluded.
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