Bids open for new wireless spectrum

By PETER GRIFFIN

An auction of wireless radio spectrum will start today, but there is no word about which community groups will be allocated spectrum set aside by the Government.

Management rights to spectrum in the 3.4 to 3.6GHz (gigahertz), 24.5 to 26.4GHz and the 890 to 900MHz (megahertz) bands will be sold in an auction process that Government officials say will be less drawn-out than the third-generation (2GHz) auctions that finished last February.

In April, IT minister Paul Swain said two extra blocks of spectrum suitable for "wireless local loop" access would be put aside to give "all New Zealand communities access to two-way, high-speed internet services".

A spokeswoman for the Ministry of Economic Development said a decision on what to do with the reserved spectrum would be made after the election.

But it was unlikely those lots would be available to national carriers as part of the auction.

"Who might ultimately end up getting these lots isn't predetermined," the spokeswoman said.

"They will be distributed on a first-come, first-served basis, but only in small areas."



Telecom, with stacks of its own spectrum, has opted out of the auction.

But usual bidders TelstraClear, Vodafone, Walker Wireless and Broadcast Communications (BCL) will take part.

So will emerging wireless company Compass Communications, which this month acquired the wireless assets of Radionet in a liquidation sale, and Econet Wireless, which plans to build a cellphone network to compete against Telecom and Vodafone.

Less-known names on the bidders' sheet include UCC (2001), a company involved in Far North plans to form a community-run telco; Counties Power Community Trust, a lines company operating south of Papakura; and Video Networks New Zealand, a video-streaming company.

Bruce Campbell, a director of Video Networks, said his company planned to offer a video-on-demand service in conjunction with a British partner using wireless spectrum.

He did not want to reveal details of the venture for commercial reasons but said winning spectrum in the auction was not essential.

Probably of most interest will be the lots of spectrum available in the 3.4GHz to 3.6GHz band, which can let operators bypass Telecom's fixed-line copper network at the "last mile" for telephone and internet services.

* Spectrum auction developments will be updated daily at Spectrum auction information