The government has raised $176 million from selling the bulk of its 700 megahertz radio spectrum, flagged for fourth generation mobile phone use, and is still mulling what to do with the remainder.
Telecom and Vodafone, the country's major mobile phone operators, each spent $66 million on three lots of 2x15 MHz spectrum while new entrant Two Degrees Mobile bought two lots of 2x10 MHz for $44 million, Communications Minister Amy Adams said in a statement.
That left one 2x5 MHz block of spectrum, which the government expects to figure out what to do with in the coming weeks. The government can either let bidders compete for the remaining spectrum or retain the unsold lot and allocate it at a later date.
2degrees said the Government should leave the unallocated spectrum on the shelf, rather than "damage long term competition by selling the unsold spectrum to Telecom or Vodafone."
"Spectrum is the motorway for mobile operators, and in the next few years that motorway will be built on 1800MHz spectrum, which all mobile operators already own. There are no mobile devices or networks using 700MHz that can be deployed in New Zealand right now, so there's no pressing consumer need to sell the remaining portion of that band," said 2degrees chief executive Stewart Sherriff.