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New Zealand : TELECOM pays $83 million in the last bid for 4G spectrum

January 23, 2014

Telecom Corp. paid $83 million for the final lot of 700 megahertz spectrum, for fourth-generation mobile phone use.

It secured the fourth 2x5 MHz lot, having spent $66 million on 3 lots of 2x5 MHz spectrum. Telecom and Vodafone were bidding for the spectrum after Two Degrees Mobile bough two lots of 2x10 Mhz lots.

Telecom will pay a third more than its largest rival, Vodafone for the spectrum pairs while locking out 2Degrees.

Chief executive, Simon Moutter said this fourth lot puts Telecom in the best position in the market to deliver a very high-performance 4G mobile network for New Zealand, including in less densely populated areas.

This demonstrates Telecom's commitment to being the leader in mobile and data network capability and provide a foundation for Telecom to continue to deliver mobile and data services.

The winning bid means that the government raised $259 million from the auction of the spectrum. The government put a minimum reserve price of $198 million for the spectrum, with a premium of $157 million spent on clearing the radio waves from analogue to digital and the $119 million to the spectrum by the Treasury.

4G capability is already available on higher MHz spectrum, the 700MHz range is well-suited for fast mobile broadband services.

The auction's conditions is that the mobile operators will have to upgrade their existing rural cell sites to 4G within 5-years and continue to expand their coverage. This is to ensure that 90 percent of the country has access to 4G network.

Telecom's purchase is subject to clearance by the competition regulator, the Commerce Commission.

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Source: TendersInfo (India)

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