Telecom NZ provisionally acquires mobile spectrum

Telecom has bought the largest share of the radiospectrum being sold by the government for new generation mobile services. The acquisition, however, remains subject to Commerce Commission clearance.

The radiospectrum was auctioned by the government, starting in late 2013. It is aimed at being used for new 4G services – essentially bigger data, faster.

Telecom, Vodafone and 2degrees bid for the auction. In the initial stages of the auction, 2degrees purchased approximately 22% of the spectrum available with Telecom and Vodafone acquiring a third each. One 5 MHz block, or approximately 11%, of the auctioned spectrum, was left unsold. This block was auctioned in subsequent rounds, with Telecom and Vodafone competing. Telecom ended up bidding $83 million (plus GST) for the final bock of spectrum.