Commission clears Vodafone to acquire radio frequency spectrum rights should it be successful in auction
Published08 Dec 2000
The Commerce Commission today cleared Vodafone Mobile NZ Limited to acquire certain management rights and licences in the current auction of radio frequency spectrum.
Commission Chair John Belgrave said that the Commission was satisfied that should Vodafone be successful in acquiring the rights and licences for which it has sought clearance, it would not acquire or strengthen dominance in any market.
Mr Belgrave stressed that the Commission's decision does not mean that Vodafone has been successful or is a preferred bidder in the auction and noted that the auction is still in progress.
In order to give a clearance the Commission must be satisfied that the proposed acquisition would not result in dominance being acquired or strengthened in any market.
The markets relevant to Vodafone's application are those for mobile telephony services and third generation mobile telephony services (3G). 3G mobile services are not currently being offered and the technology is still being developed.
In the current mobile telephony services market, Vodafone faces effective competition from Telecom throughout the country. The Commission also noted that Vodafone's success in acquiring the spectrum which is the subject of the application, would not preclude potential competitiors from entering either the mobile telephony services market or the 3G mobile telephony services market by acquiring other spectrum being offered for sale.
"For these reasons we are satisfied that the proposed acquisition would not result, or would not be likely to result, in any person acquiring or strengthening a dominant position in a market," Mr Belgrave said.
Public copies of the Commission's decision will soon be available from its website, www.comcom.govt.nz, and are available from reception at its Wellington office, level 7 Landcorp House, 101 Lambton Quay.
