Unsold spectrum should not be re-auctioned to highest bidder

The Government must put a genuinely competitive mobile market above all other considerations when deciding what to do with the unsold 700 MHz spectrum, Labour’s associate Communications and IT spokesperson Clare Curran said today.

“The 700 MHz spectrum auction announced today appears to have been somewhat of a clayton’s auction as everyone has paid the same minimum price, leaving Vodafone and Telecom with the lion’s share of the auctioned spectrum, and 2 Degrees as the lesser player in this critical market.

“Despite the concession of ‘pay as you use’ spectrum, 2 Degrees is clearly struggling to keep up.

“If New Zealand is to have a genuinely competitive mobile market then what happens to the unsold spectrum will determine competitive prices for Kiwis in the years ahead.

“The Minister has three choices: she can either announce a follow up auction of the unsold spectrum to the highest bidder; put the unsold spectrum on the shelf and not sell it; or keep it as strategic competitive reserve to stimulate competitive activity in the market, such as an incentive to a fourth entrant and for rural purposes only.

“Labour urges the Minister not to go for the quick bucks and re-auction the unsold spectrum. We believe this would be a strategic mistake and be to the disadvantage of Kiwi consumers and to a competitive market. This is a long term generational issue and the Minister must get this right,” said Clare Curran.

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