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WELLINGTON, Oct 30 (Reuters) - Telecom New Zealand and Vodafone have picked up the majority of managementrights to the country's 700 megahertz spectrum as competitionheats up to bring high-speed 4G broadband services to users inrural areas.
Telecom, the country's largest telecom company, and Vodafonesuccessfully bid on the maximum three lots of 2x15 megahertzlots for NZ$66 million ($54.55 million) each, while mobile phoneoperator 2degrees secured two lots of 2x10 MHz bandwidth.
"Overall, this is a successful outcome for the auction thatbodes well for the future of competitive fourth generationmobile services in New Zealand," Communications and InformationTechnology Minister Amy Adams said in a statement.
One 2X5 MHz lot went unsold in the auction. Adams said theremaining lot could be re-auctioned in a supplementaryallocation round while also raising the possibility that thegovernment could retain the unsold lot and allocate it at alater date.
Vodafone controls around 42 percent of the retail mobilemarket, while Telecom has a 37 percent share, followed by2degrees with 20 percent. Both the UK-owned company and Telecomalready offer 4G services in some cities, including Auckland andWellington.
"These rights will underpin our plans to bring 4G networkspeed and performance to more New Zealanders," Telecom ChiefExecutive Simon Moutter said.
The spectrum band was freed up after analogue broadcastservices in the country were terminated earlier this year, andwill allow mobile operators to extend 4G mobile broadbandoutside the country's main cities.
Vodafone and Telecom have been engaged in a price war formobile and fixed-line broadband customers as Telecom aims toincrease its market share of the mobile market to make up for anongoing fall in fixed-line customers.
