850 MHz and 900 MHz cellular spectrum renewals settled

Issue 38 – May 2012

Telecom settled last month on its 850 MHz management rights, which expire this year.This completes the settlement phase to renew the 850 MHz and 900 MHz band cellular spectrum held by Telecom, 2degrees and Vodafone expiring in the 2011 and 2012 timeframe.All the rights are being renewed through to November 2031.

In total, the renewal price was $150 million including GST.This includes a future payment by 2degrees for renewing rights that don't expire until 2022.2degrees settled in January 2012 to renew a right expiring this year.Vodafone chose to settle its rights early, making payment in 2009.

The renewal process started in 2007 when the Crown made offers to Telecom and Vodafone that included an incentive to on-sell some rights to a new entrant to the mobile market. 2degrees was the purchaser.

Summarised from the Ministry of Economic Development's 'Radio Spectrum Business Update', April 2012.

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