Counties Power in race for spectrum

By PETER GRIFFIN

The latest Government-run auction of radio spectrum is in its final stages with a handful of interested parties battling for blocks of wireless local loop spectrum.

Three bids for the sought-after spectrum reached the $445,000 mark last night with bids for the nine blocks totalling over $3.6 million.

Lines company Counties Power's bid on one of the nine blocks was $420,000 alongside Vodafone (two blocks at $375,00 each) TelstraClear (two blocks at $400,000 each) Compass Communications ($325,000) and Broadcast Communications (BCL) which topped the bidding on three blocks at $415,000 each.

Counties Power, a community trust, said the spectrum would prove valuable for a long-term wireless project.

Yesterday, the auction of five blocks of spectrum suitable for LMDS (local multipoint distribution services) ended with TelstraClear, Vodafone and BCL paying a combined total of nearly $1.1 million.

The technology allows for short-distance, high-bandwidth telephony, data and video distribution services, typically in dense urban areas.

Smaller operators UCC and Video Networks New Zealand appear to have withdrawn from the auction.

Mobile network developer Econet Wireless registered for the auction but never made a bid. Its managing director, Tex Edwards, said Econet, which has access to third-generation spectrum through its relationship with Hautaki Trust, saw nothing worth bidding for in the current auction. It also has some of its own "2.5G" spectrum.

"We checked the landscape and for our own business reasons we decided not to bid."

Early in the auction, Vodafone paid about $2 million for spectrum in the 890MHz to 900MHz range.

The auction, which started on July 23, finishes after one clear round. From today there will be six rounds a day.

Radio Spectrum Auction