TEL
19/06/2014 12:30
GENERAL
REL: 1230 HRS Telecom Corporation of New Zealand Limited
GENERAL: TEL: Telecom pleased with outcome of 700MHz Spectrum auction
Market Release
19 June 2014
Telecom very pleased with outcome of auction process for 700MHz Spectrum
The Government has announced today the completion of the assignment round of
the 700 MHz radio spectrum auction process. This final round was to determine
the location (frequency) within the spectrum band for the differing lots of
spectrum purchased by Telecom, 2Degrees and Vodafone during earlier auction
rounds.
Telecom bid $9.1 million in this round, bringing the total amount bid over
the auction process to $158.1 million, for four lots of 700MHz spectrum and
for its preferred location of those lots within the spectrum band. This is
for an 18 year licence period.
Telecom Chief Executive Simon Moutter said, "We are very pleased with the
outcome which secures Telecom a key strategic long-term asset and our
preferred location within the spectrum band. Our location at the bottom end
of the band provides us with alignment with the 700MHz spectrum that has been
allocated in Australia and gives us additional confidence about the device
ecosystem.
"We are also pleased to be the only mobile network operator with four lots of
700MHz spectrum. This will provide significant benefits to customers in terms
of the potential speed and capacity of Telecom's 4G mobile network. We're now
looking forward to getting on with our delivery of a very high-performance
700MHz 4G mobile network for New Zealand, subject to the availability of
700MHZ capable mobile devices.
"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 700
MHz spectrum, alongside partner Huawei Technologies. The non-commercial
trial, involving selected customers, will inform the future network build.
"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."
The payment for the spectrum will be made in the first half of the FY15
financial year.
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.
- ENDS -
For media queries, please contact:
Andrew Pirie
General Manager Corporate Relations
+64 (0) 27 555 0275
For investor relations queries, please contact:
Mark Laing
General Manager Corporate Finance
+64 (0) 27 227 5890
End CA:00251785 For:TEL Type:GENERAL Time:2014-06-19 12:30:40
