Auction 9, Management rights for cellular use at 2.3 & 2.5 GHz

Radio spectrum Auction 9, Management rights for cellular at 2.3 & 2.5 GHz, successfully concluded on Tuesday 18 December 2007.

Auction 9 process

The online auction process was a multiple round process for 8 lots of spectrum:

  • 4 nationwide lots suitable for WiMAX type services:
    • 2 in the 2.3 GHz band
    • 2 in the 2.5 GHz band
  • 4 nationwide lots suitable for either WiMAX or cellular type services.

Commencing with 10 participants on 11 December 2007, the auction was completed after 30 rounds. There were 6 provisionally successful bidders, and the total value of their bids was $4,374,333.

Auction 9 results

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

Auction 9 documents

Auction 9 catalogue — auction rules, lots, deed and conditions of sale

Amendment to the Terms and Conditions set out in the Auction 9 Catalogue [PDF, 32 KB]

Table of lots offered in the auction [PDF, 182 KB]

Schedule 3 to Auction 9 Catalogue — Management Right Deed [PDF, 54 KB]

Background

In November 2006, Cabinet decided to reconfigure the 2.3 GHz spectrum rights and to allocate new rights by auction.

In April 2007, we released a discussion paper for industry feedback on options for the design of a 2.3 GHz spectrum auction. 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 we 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 11 December 2007.

In addition to the auction of 8 lots of spectrum, 2 further lots of spectrum were also made available as part of the allocation process for radio spectrum in these bands. A 45 MHz lot was reserved for a "Managed Spectrum Park" (see below), which was the subject of further consultation in 2008. Also, a nationwide lot of 25 MHz was reserved for Maori. The Minister of Maori Affairs offered this lot to Hautaki Ltd.

2.5 GHz Managed Spectrum Park

The 2.5 GHz Managed Spectrum Park was designed to facilitate local and regional wireless services and to seek to encourage a flexible, cooperative, low cost and, as far as possible, self-managed approach to allocation and use of the radio spectrum resource.

Managed Spectrum Park licences

The policy was developed, with public consultation, through 2008 and 2009, and the initial licences were allocated at the end of 2009.

Results of Allocation Round 1

The successful licensees of Allocation Round 1 of the Managed Spectrum Park — and the corresponding Territorial Local Authority areas covered by the licences — are shown below.

Provisional licencee Territorial Local Authority

NZ Transport Authority

Rodney DC
North Shore CC
Waitakere CC
Auckland CC
Manukau CC
Papakura CC

Gisborne.net.nz Ltd

Gisborne DC

Mount Campbell Networks

Tasman DC
Marlborough DC
Nelson CC

NetSmart Ltd

Western Bay of Plenty DC
Tauranga CC
Whakatane DC
Kawarau DC