The Commerce Commission is advising all parties intending to bid in the radio spectrum auction on January 27 that they should carefully consider applying to the Commission for a clearance or authorisation.

This auction is of considerable significance to the future development of communications in New Zealand.

New technology will enable previously unused radio spectrum in the 26 gigahertz range to be used for limited radius wireless services such as independent access to local loop telephony, high speed Internet access and digitised television services. In addition to the 26 gigahertz radio spectrum, various radio and television spectrum licences are to be auctioned.

Commission Chairman Dr Alan Bollard said that the Commission has contacted all the major companies in these markets in New Zealand and advised them that the Commerce Act applies to radio spectra in the same way it does to other business acquisitions. The Act prohibits acquisitions that result in dominance being acquired or strengthened in any markets.

Dr Bollard said that companies or individuals not contacted by the Commission must be aware that the Act also applies to them. If they are unsure of what that means to their bid, then they are strongly advised to get legal advice. They should contact the Commission too. The Commission cannot give legal advice, but it will advise about what the Act says and how the Commission operates.

Parties can apply for a clearance which the Commission will grant if it is satisfied that dominance is not acquired or strengthened.

In addition, parties can apply to have an otherwise prohibited business acquisition authorised. The Commission will authorise an acquisition that results in dominance if it is satisfied that public benefits from the acquisition outweigh detriments to competition.

Clearance and authorisation can only be granted before an acquisition is completed. They cannot be granted retrospectively. However, bids can be made, and accepted, conditional on clearance or authorisation by the Commission.

Media contact: Commerce Act Manager Jo Bransgrove

Phone work (04) 498 0958

Commission media releases can be viewed on its web site www.comcom.govt.nz