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TelstraClear pulls out of WiMax auction
Updated:2007/12/17 11:42
Spokesman Chris Mirams says that TelstraClear registered for the auction to keep its options open, but does not believe WiMax wireless broadband services will be competitive with fixed-line broadband, which it can sell by taking advantage of local loop unbundling or by wholesaling Telecom''s network.
The auction of 215MHz of spectrum in the 2.3GHz and 2.5GHz bands kicked off last week. The open-ended Internet auction will end once no new bids are received during two consecutive bidding rounds. Telcos must bid and be leading the auction for one of the blocks during one of two consecutive rounds to stay in the running. TelstraClear''s withdrawal and rules that cap the amount of spectrum that telcos can bid for make it likely the spectrum will be sold quickly and cheaply. Under rules designed by Communications and Information Technology Minister David Cunliffe, to encourage competition, at least six different companies must win blocks of spectrum. At the end of round 18 of the bidding on Friday, bidders had offered to pay a total of only $3.4 million for the spectrum. Leading the bidding were Telecom, Vodafone, Woosh Wireless, CallPlus, Snap Internet and Canadian spectrum speculator Craig Wireless Systems. State-owned enterprise Kordia and Compass Communications were also in the running. CallPlus founder Malcolm Dick says papers have been written in the United States about the tactics for spectrum bids. "The last three digits of their bid value would be the lot number they really wanted. "They had all these elaborate signals and the big guys really used to punish people if they bid for a block they wanted, by putting in huge bids on other blocks, but I don''t think there is any of that going on. "It looks like most of the people who are bidding really want to use the spectrum." The exception is Craig Wireless which has onsold spectrum it has won in other auctions. HOW THE BIDDING STANDS LEADING COMPANY LOT BID Woosh Wireless 2300-2335Mhz $542,020 CallPlus 2335-2370Mhz $450,000 Craig Wireless 2500-2520Mhz $300,000 Telecom 2520-2540Mhz $456,000 Vodafone 2540-2575Mhz $570,000 No leader 2620-2640Mhz $320,000 Craig Wireless 2640-2660Mhz $400,000 Snap Internet 2660-2690Mhz $400,000 Source:stuff.co.nz |
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