Clear's late salvo enlivens spectrum bidding war

By PAULA OLIVER

A late bid by a new player with deep overseas pockets shook up the Government's radio spectrum auction yesterday.

Clear Communications entered the auction during the last round of the day with bids totalling $26 million for both second and third-generation (2G, 3G) spectrum.

Clear is owned by British Telecom (BT), which spent $12 billion in a British auction of 3G frequency.

Clear chief executive Peter Kaliaropoulos said the company's late entry, more than three months after the auction began, came after a review of its strategic options.

"This decision closely aligns Clear's strategy with BT's stated goal of becoming a global leader in wireless, broadband and internet protocol," he said.

The much-maligned spectrum auction finally hit the $100 million mark this week.

Clear's bids took the total offered to almost $106 million.

Also stepping up yesterday was eSavoy, a technology-based division of listed investment group Savoy Equities. It made a $3 million foray into the race for 2G.

After a week where questions were raised over dubious bidding tactics, and how much longer the auction should continue, the refreshing entrance of new players may give the process a new lease of life.

New Zealand's cellphone market has about 40 per cent penetration, and Clear said yesterday it saw ample room for growth and innovation in mobile technology.

In an message directed at the Government, Mr Kaliaropoulos said his company had been encouraged by the framework proposed in the ministerial inquiry into telecommunications.

"That framework, if implemented, will provide the certainty that underlies a positive environment for global investment in New Zealand telecommunications," he said.

Bidders will have a chance to reply to Clear's entry when bidding resumes on Tuesday.