Bidding war over radio spectrum

TOM PULLAR-STRECKER
Last updated 05:00 18/01/2014

Relevant offers

Industries

Hallenstein Glasson profit warning shows local retailers' struggling: analyst Obama pushes for new tax on oil to fund switch to green-tech Use of Maori culture in 2 Cheap Cars' Waitangi Day ad questioned Duck eggs hatch into growing business for Taranaki couple Domestic manufacturing sales increase but downturn in dairy prices could begin to bite Vodafone latest business to partner with Neighbourly ANZ forecasts more pain for dairy farmers Wellington's former Red Cross building on the market Volkswagen emissions fix starts next week Carmakers to recall five million vehicles

Telecom and Vodafone may be allowed to submit Trade Me-style "autobids" for the last block of "digital dividend" radio spectrum, a source close to the auction suggests.

It is understood a rule change is being considered because the auction currently under way has dragged on longer than officials expected.

The Ministry of Business, Innovation and Employment, which is running the auction, declined to comment.

Telecom and Vodafone are understood to have bid about $77 million for the spectrum block, the last of nine such blocks freed by the closure of analogue television, in an auction that started in November.

The reserve was set at $22m and the price had been rising by $3m a day. The auction was set to resume next week, according to the source.

It is understood that the ministry is now considering allowing the two companies to specify their maximum price through an autobid, which could potentially bring the auction to a close in just one day.

The Commerce Commission has yet to decide whether either telco should be allowed to buy the spectrum.

It is due to make a ruling by February 14.

The source speculated the commission would need a good reason to decline the purchase, given the high price the spectrum had already fetched and the boost it would provide to the Government's coffers. 

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content