Telecom seeks clearance to acquire radio spectrum

Telecom seeks clearance to acquire radio spectrum
The Commerce Commission has received an application from Telecom New Zealand Limited seeking clearance to acquire the management rights to 700 MHz radio spectrum.
Issued 4 October 2013

Release No. 25

The Commerce Commission has received an application from Telecom New Zealand Limited seeking clearance to acquire the management rights to 700 MHz radio spectrum.

The Crown is auctioning the management rights to radio spectrum freed up by the switchover to digital television. Spectrum in the 700 MHz band is expected to assist with the development of fourth generation (4G) mobile networks. The auction comprises nine blocks of 5 MHz paired spectrum in the 700 MHz band.

As part of the auction rules, there are limits on the amount of spectrum each bidder can acquire. At the start of the auction, each bidder will be limited to acquiring up to 2 x 15 MHz (or three blocks) of spectrum. However, these limits may be relaxed to 2 x 20 MHz (or four blocks) as the auction proceeds.

Telecom seeks clearance to acquire the management rights to 2 x 20 MHz (or four blocks) of spectrum, should the acquisition limits be raised to this level during the auction.
A public version of the application will be available on the clearances register shortly: http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/

Background

Assessing an application for a merger or acquisition

When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available at: http://www.comcom.govt.nz/mergers-and-acquisitions-merger-assessment-fact-sheet/
Further information on the upcoming auction is available at http://www.rsm.govt.nz/cms/policy-and-planning/consultation/digital-dividend-auction

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