5 Sep 2013

Telecom plans bidding for 700 MHz radio spectrum

7:07 am on 5 September 2013

Telecom says it welcomes the auction of New Zealand's 700 megahertz (MHz) digital dividend spectrum and that it intends to be a bidder.

Communications and Information Technology Minister Amy Adams has announced the auction is scheduled to start on 29 October with the date to be confirmed after bidders have completed the registration process.

The reserve price for each of the nine lots of 2x5 MHz paired spectrum has been set at $22 million.

Telecom said it also welcomes the Government's acknowledgement of the significant investment required by mobile network operators to build the 4G infrastructure required to use this spectrum.

The company said the 700 MHz band is an important resource if New Zealand is to make the most of 4G technology.

It said the benefits include faster mobile broadband speeds, particularly in rural New Zealand, and significant long-term economic benefit to the country.

Winning bidders will take up their management rights to the spectrum from 1 January 2014 but Telecom said deployment of this spectrum into its 4G network will depend on the availability of suitable handsets from global handset manufacturers.

It said current indications are that suitable devices will start becoming available in mid to late 2014 at the earliest.