Clear on sideline during auction

By RICHARD BRADDELL

WELLINGTON - Clear Communications has declared itself a non-starter in the third-generation mobile spectrum auction, indicating instead that it would seek partnerships with a successful bidder.

Clear's marketing and online services director, Ian Scherger, said the firm intended to offer mobility services and was talking to possible third-generation cellular partners, including Vodafone, whose existing second-generation GSM service is already resold by Clear.

Clear's decision appears to be based upon the daunting prospect of having to invest up to $1 billion should it win a licence and build a network of its own. Instead, it will continue developing its fixed-wire and wireless local-loop networks.

The economics of a single company building a network for its sole use are increasingly being called into question given the cost and the likelihood that by the time it becomes operational, the two cellular incumbents, Telecom and Vodafone, will have captured the best part of the market.

Instead, industry sources seem attracted to the idea of a third network being built by a common carrier, which would make its facilities available to any other carrier.

Mr Scherger said a partnership would enable Clear to offer advanced GSM and third-generation cellular services while leaving it free to invest in its fixed networks.

Clear is rolling out an LMDS fixed wireless network and is also concentrating its efforts on internet services to business.

Mr Scherger said Clear's decision to deliver mobility, including third-generation services, through a partnership was also influenced by the International Telecommunications Union's recommendation that third-generation services should also be able to be provided over second-generation spectrum bands.

"Our decision took into account the size of the New Zealand market, our focus on business markets, and our existing mobility reseller agreement with Vodafone."