Bidders quit spectrum auction as prices climb

By PAULA OLIVER

Big-name bidder Jump Capital has withdrawn from the Government's radio spectrum auction, just as hot competition and climbing prices seem also to have ended publisher INL's run for third-generation (3G) frequencies.

The much-maligned auction of second and third-generation spectrum is tantalisingly close to topping $100 million, but slow bidding late last week and the withdrawal of several bidders could spell the beginning of the end.

Jump Capital, backed by cash heavyweights the Todd family and Fay, Richwhite Holdings, withdrew on Friday after causing a wave of excitement when it registered to bid in the auction almost three months ago.

INL also looks to have ended its run for 3G spectrum, after lifting the auction's pace two weeks ago with bids against Telstra Saturn, Telecom and Vodafone.

The publisher has not made a bid for more than 10 rounds, despite the auction hovering close to a finish after a clear round on Friday.

Current rules stipulate that the auction will finish after two consecutive rounds without any new bids.

Higher prices for 3G spectrum, which will result in technology such as video being sent to handsets, may be deterring INL's run.

Telecom has bid $21 million for a block of 3G spectrum, and has also spent $5 million on capturing slices of second-generation frequency.

The auction's biggest spender is now Telstra Saturn, which has bids on the table totalling $36.5 million.

Telstra has bid for every type of spectrum on offer, including the broadband 1098 frequencies that are not used for cellular networks.

Telstra's nearest rival is Telecom, with bids totalling $26.1 million.

High-profile entrepreneur and Pacific Retail Group director Nick Gordon has also withdrawn from the auction, after his Gordon Marketing group made bids for second-generation frequency when it was at much lower prices.

Left to battle it out for the 1600 lots of spectrum on offer are 16 bidders out of a field of more than 20.