The Commerce Commission has received an application from Vodafone Mobile NZ Limited (Vodafone) seeking clearance in relation to radio spectrum frequencies. Vodafone are seeking clearance to acquire the management rights from the New Zealand Government for the radio frequency range between 899.8 and 915 MHz, together with the corresponding natural pair management rights in the 944.8 - 960 MHz range.

The relevant spectrum is for convenience called 900 MHz. Vodafone currently holds management rights to this 900 MHz radio spectrum, along with radio spectrum management rights in a number of other bands. Vodafone uses its 900 MHz spectrum with its 1800 MHz frequencies (subject to different management rights) to provide its current GSM mobile services.

Existing rights to the 900 MHz radio spectrum (the first of which were granted in the early 1990s) are due to expire in 2011 and 2012. On 9 November 2007, the Ministry of Economic Development, on behalf of the New Zealand Government, made an offer to Vodafone for the renewal of its 900 MHz management rights for a further 20 years.

In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

A public version of the application will shortly be available on the Commission's website www.comcom.govt.nz under the Clearances Register

Background

As part of the pre-settlement conditions required by the Ministry of Economic Development (MED), Vodafone Mobile NZ Limited must provide a statutory declaration specifying that the acquisition of the frequencies will not involve a breach of section 47 of the Commerce Act or they may apply for a clearance from the Commission Commerce. Clearance applications are voluntary under the Commerce Act.

More information about the Renewal of Cellular Rights can be found on MED's website www.med.govt.nz