Auction 9 - 2.3 and 2.5 GHz auction
Radio spectrum Auction 9 successfully concluded on Tuesday, 18 December 2007.
The online auction process was a multiple round process for eight lots of spectrum – four nationwide lots suitable for WiMAX type services (two in the 2.3 GHz band and two in the 2.5 GHz band) and four nationwide lots suitable for either WiMAX or cellular type services.
Commencing with ten participants on Tuesday 11 December 2007, the auction was completed after 30 rounds. There are six provisionally successful bidders and the total value of their bids is $4,374,333.
The provisionally successful bidders for the lots in Auction 9 are as follows:
|Provisionally Successful Bidder|
|Lot number||Lower boundary||Upper boundary||Lot size (MHz)||Number||Name||Lot value|
|1||2300 MHz||2335 MHz||35||904||Kordia Ltd||$593,333|
|2||2335 MHz||2370 MHz||35||910||Woosh Wireless Ltd||$650,000|
|3||2500 MHz||2520 MHz||20||903||Craig Wireless Systems Ltd||$555,000|
|4||2520 MHz||2540 MHz||20||907||Telecom Leasing Ltd||$456,000|
|5||2540 MHz||2575 MHz||35||909||Vodafone Mobile NZ Ltd||$670,000|
|6||2620 MHz||2640 MHz||20||903||Craig Wireless Systems Ltd||$500,000|
|7||2640 MHz||2660 MHz||20||907||Telecom Leasing Ltd||$450,000|
|8||2660 MHz||2690 MHz||30||901||Blue Reach Ltd||$500,000|
Please note that the Provisionally Successful Bidders are under contractual obligation under clause 10.3 (b) of the Auction Catalogue to purchase that Lot from the Chief Executive of the Ministry of Economic Development.
In November 2006, Cabinet decided to reconfigure the 2.3 GHz spectrum rights and to allocate new rights by auction.
On 10 April 2007, the Ministry of Economic Development released a discussion paper for industry feedback on options for the design of a 2.3 GHz spectrum auction in late May 2007. After careful consideration of stakeholders’ submissions, and to provide early certainty for investment in new broadband wireless access services using this spectrum, Cabinet decided in May 2007 to jointly auction 2.3 GHz and 2.5 GHz spectrum in December 2007, following decisions at the World Radio Conference.
On 17 August the Ministry of Economic Development released a discussion paper for public comment and feedback. It outlined options for a joint auction of spectrum at the 2.3 GHz and 2.5 GHz bands. Forty-one submissions were received from technology suppliers, existing and potential New Zealand operators, and existing users of the 2.5 GHz band.
On 29 October, Cabinet agreed to the final auction design for radio spectrum at the 2.3 GHz and 2.5 GHz bands, and an auction start date of Tuesday 11 December 2007.
In addition to the auction of eight lots of spectrum, two further lots of spectrum have also been made available as part of the allocation process for radio spectrum in these bands. A 45 MHz lot has been reserved for a "managed spectrum park", which will be the subject of further consultation in 2008. Also, a nationwide lot of 25 MHz is reserved for Maori. The Minister of Maori Affairs has offered this lot to Hautaki Ltd. The terms and conditions of the management rights deed for this piece of spectrum are the same as those of the management rights deed that successful bidders are required to enter into, including acquisition limits, association rules and requirements for implementing services in any spectrum band the subject of the rights.
|Bidder number||Bidder name||Associations/principals declared
|901||Blue Reach Ltd||Yes [7 kB PDF]|
|902||Compass Communications Ltd||Yes [7 kB PDF]|
|903||Craig Wireless Systems Ltd||Yes [7 kB PDF]|
|904||Kordia Ltd||Yes [7 kB PDF]|
|905||Snap Internet Ltd||Yes [7 kB PDF]|
|906||Spectrumania Ltd||Yes [7 kB PDF]|
|907||Telecom Leasing Ltd||Yes [8 kB PDF]|
|908||TelstraClear Ltd||Yes [64 kB PDF]|
|909||Vodafone Mobile NZ Ltd||Yes [7 kB PDF]|
|910||Woosh Wireless Ltd||Yes [7 kB PDF]|
Bidder associations as advised to the Auction Manager as at 4.00pm on Monday 26 November 2007 are summarised here.
Details of disclosed principals and beneficial owners advised to the Auction Manager can be viewed on the registered bidders table given above. (Click the “yes” link in the table view the relevant information)
Registered Bidders must continue to advise the Auction Manager of any changes in the composition of their Associate Groups as and when they arise up to, and including, the completion date of the auction pursuant to clause 4.8 of the Auction 9 Catalogue.
Updated: Bidder Associations advised to the Auction Manager as at 4.00pm on Monday 26 November 2007 gave rise to an Associate Group comprising Blue Reach Limited, Spectrumania Limited and Compass Communications Limited.
The Auction Manager has subsequently received statutory declarations to the effect that Compass Communications Limited is no longer an Associate of Blue Reach Limited and Spectrumania Limited.
The declared Associations of Blue Reach Limited and Spectrumania Limited give rise to an Associate Group comprising those two companies.
As with previous auctions, the Ministry operated a "mock" auction in the week before the commencement of Auction No. 9.
Auction 9 catalogue [300 kB PDF] – the auction rules, lots, deed and conditions of sale
19 December 2007 - Notice of provisional results of radio spectrum Auction 9 - Ministry of Economic Development
1 November 2007 - 2.3 and 2.5 GHz radio spectrum auction set for December – Hon David Cunliffe, Minister of Communications and Information Technology
1 November 2007 - New radio spectrum opportunities for Māori - Hon Parekura Horomia, Minister of Māori Affairs and Hon David Cunliffe, Minister of Communications and Information Technology
17 August 2007 - Wireless broadband roll-out a step closer – Hon David Cunliffe, Minister of Communications
31 May 2007 - Wireless broadband spectrum auction in December - Hon David Cunliffe, Minister of Communications
31 May 2007 - Delivering on the act - Speech by Hon David Cunliffe, Minister of Communications
16 May 2007 - 2.3 GHz spectrum submissions need careful scrutiny - Hon David Cunliffe, Minister of Communications
10 April 2007 - Broadband wireless spectrum auction process starts - Hon David Cunliffe, Minister of Communications
Cabinet paper – Allocation of spectrum for wireless broadband: 2.3 Ghz and 2.5 GHz [752 kB PDF] - The recommendations in this paper and the option in Recommendation 13.4 were agreed to.
Submissions – View the submissions received on the 2.3/2.5 GHz auction discussion paper
2.3/2.5 GHz auction discussion paper – A discussion paper of the proposed rules, process and technical parameters for an auction of spectrum in the 2.3 GHz and 2.5 GHz bands. (August 2007). Also available in PDF format - 2.3/2.5 GHz auction discussion paper [255 kB PDF]
Submissions summary [176 kB PDF] – A summary of the submissions the Ministry of Economic Development received on the proposed auction rules, process and technical parameters for the auction of spectrum in the 2.3 GHz band. (May 2007)
Submissions – A list of submitters on the proposed auction rules, process and technical parameters for the auction of spectrum in the 2.3 GHz band. (May 2007)
Radio frequency auction No. 9: overview [222 kB PDF] – A discussion paper setting out the proposed auction rules, process and technical parameters for the auction of spectrum in the 2.3 GHz band. (April 2007)
View the submissions received for the 2.3 GHz and 2.5 GHz auction.