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The nation's biggest telephone company Telecom has agreed to sell 5 MegaHertz (MHz) of paired cellular radio spectrum to NZ Communications for an undisclosed amount.
The two blocks in the 850 (MHz) band could be use for a number of cellular technologies, said Telecom, which had in the past used it for its 025 mobile network.
"This spectrum was not currently being used by Telecom," Telecom group technology officer Greg Patchell said.
Telecom will keep 15 MHz of paired spectrum in the 850 MHz band used for its CDMA/EVDO and GSM/UMTS mobile networks.
NZ Communications, formerly known as Econet Wireless, this week sealed a roaming contract with Vodafone - a move that would enable it to deliver mobile services to its customers across the country.