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- Release Date: 19/11/13 15:46
- Summary: GENERAL: TEL: Government announces intent to auction remaining spectrum
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TEL
19/11/2013 13:46
GENERAL
REL: 1346 HRS Telecom Corporation of New Zealand Limited
GENERAL: TEL: Government announces intent to auction remaining spectrum
MARKET RELEASE
19 November 2013
Government announces intention to auction remaining 700 MHz spectrum
The Minister for Communications and Information Technology, Amy Adams, has
announced that it intends to auction the remaining 2x5 MHz block of 700 MHz
radio spectrum.
Telecom and Vodafone each successfully bid for 2x15 MHz (three lots), while
2degrees successfully bid for 2x10 MHz (two lots) during the first round of
the auction last month, leaving one 2x5 MHz block of spectrum unsold. Telecom
and Vodafone have both applied to the Commerce Commission for clearance to
purchase 2x20 MHz. Telecom intends to participate in the forthcoming auction,
but will not comment further at this time due to commercial reasons.
Background
The 700MHz 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 is already well advanced in the build of its 4G network in major
urban areas using 1800MHz spectrum, and launched 4G services for customers in
Auckland, Wellington and Christchurch on 12 November.
However 1800MHz spectrum is not particularly well suited for use outside
major urban areas. In less densely populated areas, the broader coverage
range of lower frequency spectrum such as the 700MHz band enables a 4G
network to be built with less cell site infrastructure, significantly
improving the network economics.
Please find enclosed a copy of the Ministers statement.
- 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 Capital Markets & Investor Relations +64 (0) 27 227 5890
End CA:00244008 For:TEL Type:GENERAL Time:2013-11-19 13:46:29
