TEL
30/05/2014 09:34
GENERAL
REL: 0934 HRS Telecom Corporation of New Zealand Limited
GENERAL: TEL: ComCom clears Telecom purchase of final lot of 4G spectrum
Market Release
30 May 2014
Commerce Commission clears Telecom purchase of final lot of 700 MHz spectrum
for 4G mobile services
The Commerce Commission has announced today that Telecom has been cleared to
proceed with the purchase of the final 2x5 MHz lot of 700 MHz radio spectrum.
Telecom is the only mobile network operator with four lots of this spectrum.
Telecom Chief Executive Simon Moutter said, "We are pleased that our purchase
of a fourth lot of 700 MHz spectrum has been cleared. This fourth lot will
provide significant benefits to customers in terms of the potential speed and
capacity of Telecom's 4G mobile network.
"The more of this 700MHz spectrum a carrier has, the faster the speeds it
will be capable of offering and the more data it can carry. So 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 absolute commitment to being the leader in
mobile and data network capability, and provides a strong foundation for
Telecom to continue to deliver world class mobile and data services to New
Zealanders across the country."
Telecom has already begun trialling its high speed 4G data network over
APT700 MHz spectrum, alongside partner Huawei Technologies. The
non-commercial trial, involving selected customers, will inform the future
network build. Early trial results have shown impressive 4G performance.
"We've now got a leading data network integrating 3G, 4G, WiFi, ADSL, VDSL
and Fibre, backed up by a nationwide optical transport network that is
underpinning anytime, anywhere connectivity for customers. With the addition
of this 700 MHz spectrum, we can accelerate our plans to help unleash New
Zealand's data, mobility and digital services future."
In the auction, Telecom bid $83 million for the final lot, in addition to a
total of $66 million for three lots in the initial auction round. Vodafone
successfully bid for 2x15 MHz (three lots), while 2Degrees successfully bid
for 2x10 MHz (two lots).
A final assignment round, during which each successful bidder will bid for a
location within the spectrum band, is still to be held.
Background
The 700 MHz spectrum band, previously used for analogue broadcast services,
is expected to allow mobile operators to provide 4G mobile broadband services
- already being built in New Zealand's main cities - much more extensively in
New Zealand, including in less densely populated areas.
Telecom launched 4G services, utilising existing spectrum in the 1800 MHz
range, in Auckland, Wellington and Christchurch in November 2013 and has
continued to rapidly extend its network into many other parts of New Zealand
throughout 2014.
New Zealand is one of the first countries in the world to clear and
reallocate a portion of the APT700 band plan (otherwise known as the Digital
Dividend spectrum) to support mobile broadband usage. While the Government's
700 MHz spectrum auction process has not yet concluded, the Ministry of
Business, Innovation and Employment (MBIE) has approved temporary use of the
spectrum for trial purposes.
The trial will help Telecom to hit the ground running once the spectrum
becomes commercially available, speeding up the delivery of Telecom's 4G
mobile network beyond the major metropolitan centres. The trial is being
conducted by Telecom in conjunction with Huawei Technologies over 11 cell
sites spread across three Waikato locations including central Hamilton and
the Mystery Creek Events Centre. In addition to technical testing, Telecom
will use the trial to showcase 700 MHz 4G at the National Agricultural
Fieldays event at Mystery Creek and for piloting mobility solutions with
Gen-i clients.
In a further boost to 4G capability, on 26 May Telecom made carrier
aggregation (CA) technology live on six of its 4G mobile sites. Telecom has
worked with technology partner Huawei to bring this new potential to New
Zealand. Carrier aggregation allows mobile users to access two mobile
spectrum bands simultaneously over their mobile devices - the combination
giving them a significant increase in data speeds.
- ENDS -
For media queries, please contact:
Richard Llewellyn
Head of Corporate Communications +64 (0) 27 523 2362
For investor relations queries, please contact:
Mark Laing
General Manager Corporate Finance +64 (0) 27 227 5890
End CA:00251055 For:TEL Type:GENERAL Time:2014-05-30 09:34:56
