The Commerce Commission has received an application from Telecom Leasing Limited (Telecom) seeking clearance in relation to radio spectrum frequencies. Telecom is seeking clearance to acquire the management rights from the New Zealand Government for the radio frequency range between 2520 and 2540 GHz, together with the corresponding natural pair management rights in the 2640 - 2660 GHz range.

The relevant spectrum is for convenience called 2.5 GHz. Telecom provisionally acquired the spectrum through an auction conducted by the Ministry of Economic Development (MED) in late 2007. Telecom successfully bid for rights to lots 2 x 20 MHz of spectrum suitable for either WiMAX or cellular type services.

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 MED, Telecom 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 auction of the 2.3 and 2.5 GHz spectrum can be found at http://www.rsm.govt.nz/cms/policy-and-planning/spectrum-auctions/2-3-2-5-ghz-auction