INL breathes life into spectrum sale

The Government's radio spectrum auction is flickering into life with a bid from Rupert Murdoch-backed media company Independent Newspapers Ltd.

INL made bids yesterday for two chunks of second-generation (2G) spectrum, totalling $600,000. It may yet bid for third-generation spectrum. If it does, it will upset the big three, Telecom, Telstra Saturn and Vodafone, who have each staked a claim to one of the three third-generation frequencies up for auction with similar prices, just above the Government's reserve.

The Wellington-based company had been one of the sleeping giants of the auction, preferring to wait patiently before entering the fray.

Managing director Mike Robson said there were strong commercial opportunities arising from the delivery of content over new cellular services and platforms. New generation radio spectrum offered opportunities for INL in data services, narrowcasting, video and multimedia.

"INL has diversified into new media by investing in Sky pay-TV, and has now launched a major internet service with the building of www.stuff.co.nz.

"The convergence story is under way and we're part of it," he said. "INL's strong content is now being leveraged on to a new internet platform which is showing remarkable growth in uptake."

Mr Robson said it was too early to indicate whether INL would develop a network or specific services on its own, or in partnerships with others.

INL owns 80 daily, Sunday and community newspapers and magazines, and 49.6 per cent of Sky Network Television.

Bids at the month-old auction now total $37 million, with all the action in the 2G fold. INL is seen as one of the few bidders who could raise the funds for a 3G challenge. TVNZ-owned Broadcast Communications re-entered bidding yesterday with four bids for 2G spectrum, totalling nearly $350,000.