4. The auction alternative

Issue 4.1

What would be the most appropriate design of auctioning spectrum, following a rejection by incumbent right holders of renewal price offers from the Government?

Econet only provides an answer to this question on the understanding that it maintains the whole process under which these questions are asked is flawed and inadequate to achieve Government objectives.

Issue 4.2

Do you have any comments on the use of an open, simultaneous multiple round auction design previously adopted by the Ministry for large commercial rights and licences (e.g. Auction 6 rules)?

Econet only provides an answer to this question on the understanding that it maintains the whole process under which these questions are asked is flawed and inadequate to achieve Government objectives.

The spectrum auction in 2000-2001 created a world record which New Zealand should be ashamed of. Auction rules should not allow any party to maintain or gain a monopoly hold on any given spectrum range.
 

Issue 4.3

Do you have any other comments on auction as an alternative to the renewal process?

Econet only provides an answer to this question on the understanding that it maintains the whole process under which these questions are asked is flawed and inadequate to achieve Government objectives.

Econet believes that the cellular spectrum rights in the 800 and 900MHz band cannot and must not be renewed in their current format. In the absence of an appropriate regulatory policy on spectrum, Econet believes that following procedure should be followed:

1. The Telecom allocation in the 800MHZ band should be reduced to less than 886 MHz to allow use of the full 25+25MHz spectrum available for standard GSM use (i.e. 890-915MHz and 935-960MHz).
2. The 900MHz band appropriate for GSM should be divided up into four equal portions, and reserved for use by GSM and UMTS networks only (subject to UMTS use not interfering with GSM use).
3. The four portions should be allocated to holders of the 1800MHz spectrum being Vodafone, Econet, TelstraClear and Telecom.
4. The new holders should pay a nominal fee for the spectrum. The objective of the process should be to create a competitive mobile industry, not to derive a token income for the government.
5. Telecom should be allowed continued use of the 850MHz band only as long as it operates a CDMA 2000 network in that band.
6. Vodafone should be required as a condition of the renewal to rent (at TSLRC pricing) at least 4MHz each of 900MHz spectrum to other interested 1800MHz spectrum holders until the new management rights at 900MHz are effective.

New Zealand are world leaders in Rugby, New Zealanders are world leaders in international yachting, New Zealand has a vibrant, hardworking community who pride them selves on doing things well.

In the telecommunications industry NZ has participated in some bizarre Right wing cult where are no common sense was allocated to the self interest of large corporates, who have monopolized community owned government owned natural recourses.

In the time period most countries have broken up monopoly utility businesses, New Zealand has actually encouraged them. Nowhere else is NZ’s track record more shameful than the disastrous telecommunications business where Kiwis shamefully sit at the bottom of the league tables.

The lack of imagination and the lack of vision for a multi network new Zealand leaves many economists stunned, when countries such as Ireland has 4 networks and the Congo has 5 networks

Spectrum management in NZ needs to facilitate scalable nationwide competitive networks and spectrum can only be discussed in conjunction with the other policy components of an ICT policy that clears up the pigsty mess of 15 years of failed policy settings