Fresh radio spectrum auction begins today

By NZPA

Tuesday 23rd July 2002

The Government will start auctioning a fresh round of radio spectrum today and officials believe it will be less drawn out than last year's second and third-generation auction.

The new round will include spectrum suitable for broadband use. Two lots of wireless spectrum will be kept aside by the Government for the regional development of high-speed Internet.

The other 16 lots would comprise of:

* Nine blocks of 3.4-3.6 GHz suitable for local loop phone and Internet connections, generically referred to as wireless local loop.

* A single lot of 2G spectrum not sold in the previous auction.

* Five blocks of 24.5-26.4 GHz suitable for short distance, high bandwidth telephone data and video services, generically known as "local multi-point distribution services" (LMDS).

* Spectrum around 900 MHz suitable for cellular services, similar to those provided by Telecom and Vodafone.

A spokeswoman for the Ministry of Economic Development said a decision on what to do with the reserved spectrum would be made after the election.

"Who might ultimately end up getting these lots isn't predetermined," she said.

Telecom, with stacks of its own spectrum, has opted out of the auction. Usual bidders TelstraClear, Vodafone, Walker Wireless and Broadcast Communications (BCL) will take part.

So will emerging wireless company Compass Communications, which this month acquired the wireless assets of Radionet in a liquidation sale, and Econet Wireless, which plans to build a cellphone network to compete against Telecom and Vodafone.

Last year's 2G auction has prompted a revision of the rules, including a limit on the withdrawal of bids and closing schedules after one clear round rather than two.

The previous auction also comprised of a much greater number of spectrum -- some 1035 lots, raising about $133 million.

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