KEY POINTS:
The Government's radio spectrum auction has closed, netting the Government $4.4 million in sale proceeds and arming the industry's main players with enough spectrum to roll-out wireless voice and broadband services.
What's good is that everyone got pretty much what they needed and it didn't cost the
earth. While the auctions of the 2.3GHz and 2.5GHz, were dubbed the WiMax spectrum auction, the two mobile players, Telecom and Vodafone, secured spectrum in the 2.5GHz band, which is important for 4th generation mobile phone services or "Long Term Evolution" as it is known in the industry.
Malcom Dick and CallPlus, who claim to have serious Japanese investment money behind them to build a WiMax network, picked up spectrum through subsidiary Blue Reach.
Woosh Wireless, which needs to migrate its technology platform to WiMax also picked up spectrum suitable for these types of services, as did state-owned broadcasting and broadband player Kordia, which likewise has aspirations in the WiMax camp.
Then there's the less familiar name of Craig Wireless, the Canadian investment company and wireless broadband player. It's not just the Canadian Pension Plan Investment Board keen on buying up a bit of New Zealand.
Set up in 1995, Craig Wireless has been operating fixed-wireless services (much similar in principle to Woosh Wireless) to deliver broadband and wireless TV services to customers in parts of Canada. An entry level broadband deal starts at C$41.95 per month and gets you a 1.5Mbps connection with a 15GB data cap.
It's also bought up spectrum in Norway and has a joint venture in Greece. It obviously intends to push ahead with a WiMax network in New Zealand in 2009 and its favoured model seems to be to build the network then partner with a local operator. So who will it be? Woosh, CallPlus or Kordia? That's yet to be seen, but a dose of foreign investment and interest has got to help the case of the alternative network players.
The mobile players argue they'll be able to do everything WiMax promises with the next evolution of their mobile networks - and do it cheaper.
"It would be really bad for New Zealand if the mobile operators couldn't get the spectrum to enable them to do that," Qualcomm's business development manager for Australia and New Zealand, Robert Hart, told me on his trip to Wellington last week before the auction had properly got going.
Qualcomm makes chipsets for mobile phones and has numerous patents on mobile technology (though is involved in a protracted legal fight with rival Nokia over these patents).
It turns out Hart's fears about the auction were unfounded. Both WiMax hopefuls and mobile players got a slice of the airwaves.
"There's nothing wrong with competition," Hart added.
"It's more a case of making sure the mobile players can get access to spectrum they'll need to grow their networks."
How the auction played out:
Band Price Buyer
2300-2335Mhz $593,333 904 Kordia
2-2335-2370Mhz $650,000 910 Woosh
3-2500-2520Mhz $555,000 903 Craig Wireless Systems
4-2520-2540Mhz $456,000 907 Telecom
5-2540-2575Mhz $670,000 909 Vodafone
6-2620-2640Mhz $500,000 903 Craig Wireless Systems
7-2640-2660Mhz $450,000 907 Telecom
8-2660-2690Mhz $500,000 901 Blue Reach
