Mobile newcomer in Maori spectrum deal

By ADAM GIFFORD

Maori spectrum company Hautaki will pay fledgling mobile operator Econet Wireless $4 million for a 30 per cent stake, and give it a 10-year option to use the block of 3G spectrum set aside for Maori.

As part of the deal, Econet will pay Hautaki at least $36,000 a year for tertiary academic scholarships and $24,000 for tertiary sports scholarships, starting in May.

Quotable Value New Zealand head, former All Black Bill Osborne, has quit the Te Huarahi Tika Trust so he can chair Econet, its joint-venture partner.

Hautaki, set up with a $5 million grant from the Government, holds the management rights to the 3G spectrum on behalf of Te Huarahi Tika, which is responsible for delivering benefits to Maori.

The deal approved by Te Huarahi Tika indicates where it wants to see the benefits flow. Hautaki will have the right to nominate four schools or community centres to receive free internet services and computers from Econet Wireless. The benefits will increase as the venture's turnover grows.

Hautaki can appoint two of Econet's six directors. Auckland lawyer Paul Majurey will join Mr Osborne as the other Hautaki nominee. Wairarapa shearing contractor Mavis Mullens takes over from Mr Osborne as chair of Te Huarahi Tika Trust.

"Econet needed someone who understands the New Zealand market and has contacts here," Mr Osborne said, explaining his move into the top role.

Econet Wireless intends to create a GSM mobile phone network, initially using 2.5G it picked up for $10.2 million in the Government radio spectrum auction which ended last February.

Including the spectrum, Econet says it has spent more than $25 million setting up, and analysts say a new network could cost 10 times that.

The block of 3G spectrum held by Hautaki will cost about $15 million to buy from the Crown, but it is not needed immediately.

Mr Osborne said he and Mr Majurey would ensure there was a Maori perspective in the way the company did business.

For example, co-location of cell sites, which is made possible by the Telecommunications Act over the opposition of rivals, is consistent with Maori values.

"Maori want to protect the environment, which means not having to bulldoze your way up the hill to establish a new cell site," Mr Osborne said.

"Most of the best sites were taken through agreement with Maori in the past, and Maori don't want to damage the land any further."

Econet director Tex Edwards has said Hautaki's slice of 3G spectrum will give Econet a long-term strategy in providing next-generation mobile services.