Door opened for third mobile network player

Both Vodafone and Telecom have accepted a deal that could help a third major player enter the mobile market. Photo / Brett Phibbs

The country's two major mobile network operators have accepted a deal that the Government says will help the launch of a third player in the market.

Telecom and Vodafone have accepted offers from the Ministry of Economic Development to renew cellular spectrum rights in the 800MHz and 900MHz bands for 20 years from 2011/12.

A condition of the offers was for some of the spectrum to be made available to a new entrant in the mobile market. Both Telecom and Vodafone have completed sales of spectrum to company NZ Communications.

Communications and Information Technology Minister David Cunliffe today said the sale of spectrum to a third company would help launch a third network player in this country.

The 800 and 900MHz bands were valued for their better quality and longer reach, which kept deployment costs down, particularly for coverage outside metropolitan areas.

The bands' longer range was also attractive to a new entrant because fewer cell sites needed to be built and services could be more cost effective.

- NZPA