WELLINGTON, Jan 22 (Reuters) - Telecom New Zealand on Wednesday said it had picked up the management rights to thecountry's remaining 700 megahertz spectrum band, allowing thecompany to roll out 4G mobile services to more rural areas.
Telecom New Zealand paid NZ$83 million ($69 million) for therights to the final bundle of radio spectrum auctioned by theNew Zealand government, significantly more than a total of NZ$66million it paid for three similar lots in October.
Major competitor Vodafone New Zealand controls threelots of the same size, while mobile phone operator 2degrees hassecured two smaller lots in the overall auction process.
"This fourth lot puts Telecom in the best position in themarket to deliver a very high-performance 4G mobile network forNew Zealand, including in less densely populated areas," TelecomNew Zealand Chief Executive Simon Moutter said in a statement.
He added that the company had paid a premium for the finallot because owning the rights to the largest share of thespectrum would enable it to offer more data at faster speeds.
Share in Telecom edged up 0.6 percent to NZ$2.40 after theannouncement.
The spectrum band was freed up after analogue broadcastservices in the country were terminated last year, and willallow mobile operators to extend 4G mobile broadband outside thecountry's main cities.
Vodafone and Telecom New Zealand have been engaged in aprice war for mobile and fixed-line broadband customers asTelecom aims to increase its market share of the mobile marketto make up for an ongoing fall in fixed-line customers.
Vodafone controls around 42 percent of the retail mobilemarket, while Telecom New Zealand has a 37 percent share,followed by 2degrees with 20 percent. The leading pair alreadyoffer 4G services in some cities, including Auckland andWellington.
Vodafone (VOD)
