The Commerce Commission has published a statement of preliminary issues relating to the applications from Telecom and Vodafone seeking clearance to acquire the management rights to 700 MHz radio spectrum.

The statement of preliminary issues outlines the key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance. The Commission’s statement of preliminary issues and public version of the two applications are on our Clearances Register.

The Commission invites submissions from parties who consider that they have information relevant to the Commission’s consideration of this matter. Submissions can be sent to registrar@comcom.govt.nz with the reference 700 MHz spectrum in the subject line of your email or to PO Box 2351, Wellington 6140 by 5pm on Tuesday 5 November 2013.

Background

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.

The parties that have been confirmed as registered bidders for the auction are Telecom New Zealand Limited, Vodafone New Zealand Limited and Two Degrees Mobile Limited.

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.

Whilst the wording of their applications differs, in essence, both Telecom and Vodafone seek 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.