Radio-band auction off till January

By Richard Braddell

WELLINGTON - The Government has bowed to telecommunications industry pressure and will delay the auction of radio frequencies that will be used for a new generation of internet-capable mobile telephones.

The auction of the 2GHz band had been set to begin on November 15, but will now start on January 31, following representations to Communications Minister Maurice Williamson.

Among concerns were that potential bidders, many needing approval from foreign parents, would not have had time to get board approval, prepare business plans and arrange finance.

Vodafone chief executive John Rohan said the delay was essential, if only because of rapid advances in mobile technology which needed to be factored into business plans.

Also, Vodafone had to take account of its growth in market share and the impact on its existing GSM network.

The general manager of corporate relations for Telstra NZ, Deanne Weir, said the delay was what had been asked for, although she would not like to see the auction put off longer.

The auction has already been dogged with controversy, with suggestions in Maori quarters that it was allowed to proceed as a tradeoff in which the Government rejected a Waitangi Tribunal recommendation that some of the spectrum be set aside for Maori in return for an additional $15 million for Maori language development announced by Maori Affairs Minister Tau Henare a fortnight ago.

That has been strenuously denied by the Government. But Maori interests expect to have an action for an injunction before the courts within two days, although a technical adviser to the treaty claimants, Graeme Everton, said the postponement would ease the pressure.