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  Reply # 929385 8-Nov-2013 13:21 Send private message

From 2degrees today:


Vodafone’s chilling attempt to monopolise spectrum

Vodafone’s campaign to secure the remaining 700MHz spectrum shows it will pay whatever it takes to stall true competition in mobile.

2degrees CEO Stewart Sherriff says Vodafone’s public comment this week that the spectrum should be sold to “the party that values it the most” adds to chilling reading in its Commerce Commission application for the scarce resource.

“Vodafone already has more spectrum than anyone else and is seeking to use its market power to gain even more. This is a once in a generation allocation and the outcome will impact the telecommunications market for the next 18 years,” says Mr Sherriff.

In an industry where the company with the most spectrum enjoys lower infrastructure build and operation costs, Vodafone is seeking to lock-in twice as much spectrum as 2degrees.
Mr Sherriff says Vodafone’s October 9 clearance application to the Commerce Commission reveals its plans to ensure 2degrees does not continue to grow, preventing post pay and business customers from getting the value they deserve.

In seeking the remaining 5MHz paired of 700MHz spectrum, Vodafone concludes:

“…all [operators] can continue to compete on the same basis as at present….Vodafone and Telecom would remain in broadly equivalent positions…and there is no reduction in 2degrees ability to compete on the same basis as it currently does”.

Mr Sherriff says these comments are aimed at ensuring 2degrees does not grow, ultimately undermining its ability to become a full service telecommunications provider that challenges Vodafone and Telecom in the fixed and mobile markets.

“We are investing in a national network, growing our customer base and launching new services. We’ve made it clear we intend to leverage the UFB to compete head on with Vodafone and Telecom in the total telecommunications market.”

“Spectrum is the motorway of the industry – you can’t give one player twice as many lanes and expect the market to be competitive. It’s especially important in rural areas where Vodafone is attempting to create a new monopoly – everyone, everywhere deserves a choice of three.”

Mr Sherriff says the government needs to take stock of a complex and changing market, not make a decision based on a lack of information.

“All three players now have sufficient spectrum to deliver 4G services, with Vodafone and Telecom already holding more than 2degrees.”

“Even Telecom agrees no one needs the additional spectrum immediately and that the government should not sell it to Vodafone.”

“The Minister has commenced a review of the telecommunications market and that needs to play out. The review will reveal the true state of competition in the mobile market and provide information that enables good decision making.”

“The unsold spectrum isn’t needed right now – the market’s changing fast. Let’s take the time to get this right.”






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  Reply # 929505 8-Nov-2013 15:12 Send private message

Huh?? 2degrees decides not to buy the extra spectrum, now they're complaining Vodafone could buy it? Well why did you not buy it 2degrees?




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  Reply # 929722 8-Nov-2013 20:58 Send private message

What are they expecting ??? To be just given the other block?

Or maybee they are expecting that one of thair majour sharholders will get ahold of it and just gift it to them??

my 2c; if you cant afford to buy it don't go complaining when someone else does!



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  Reply # 972284 22-Jan-2014 14:43 One person supports this post Send private message

Final 700 MHz spectrum block auctioned   The Ministry of Business, Innovation and Employment has today announced that Telecom has won the final block of 700 MHz radio spectrum. Telecom bid $83 million (+GST) for the final block of spectrum. Under the auction rules, Telecom’s bid for the final block is conditional on it obtaining clearance from the Commerce Commission to acquire the spectrum. Radio spectrum management rights are deemed to be business assets and are therefore subject to the competition provisions of the Commerce Act 1986. In the first round of the auction in October last year, three bidders were each entitled to bid for three spectrum blocks. However, 2degrees only bid for two blocks, leaving one block unsold. Following the final round of the auction, the results of the 700 MHz auction are (subject to Commerce Commission clearance):
  • Telecom: 2x20 MHz (four blocks)
  • Vodafone: 2x15 MHz (three blocks)
  • 2degrees: 2x10 MHz (two blocks)
Under the auction terms, bidders who acquire three blocks of radio spectrum must build at least five new cell sites each year, for five years. As a condition of winning the final spectrum block and having four blocks of 700 MHz radio spectrum, Telecom will be required to build ten new cell sites each year for five years, in areas that it does not currently cover. All successful bidders will also be required to upgrade 75 per cent of their existing rural cell sites to 4G, up to a maximum of 300 sites. The auction conditions are designed to ensure that at least 90 per cent of New Zealanders have access to a 4G network and faster mobile broadband coverage within five years. 4G mobile broadband services are capable of speeds up to ten times faster than existing mobile data networks, and are expected to help meet growing consumer demand for mobile data. Indications are that by using the spectrum for 4G mobile networks, economic benefits for New Zealand of up to $2.4 billion can be expected over the next twenty years.




This profile has been set up by MBIE's Radio Spectrum Policy & Planning team. For any specific questions, please contact us on 0508 RSM INFO or visit us at www.rsm.govt.nz


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  Reply # 972292 22-Jan-2014 14:56 Send private message

Well, so much for the Vodafone theory!

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  Reply # 972299 22-Jan-2014 15:09 Send private message

Behodar: Well, so much for the Vodafone theory!

Did they even bid?




Chorus has spent $1.4 billion on making their ADSL broadband network faster. Why not spend a couple of hundred to make sure you are getting the most out of your connection?
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  Reply # 972300 22-Jan-2014 15:12 One person supports this post Send private message

coffeebaron:
Behodar: Well, so much for the Vodafone theory!

Did they even bid?


They must've or else Telecom would have got that spectrum for the reserve price of ~$20M

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  Reply # 972330 22-Jan-2014 16:11 Send private message

A brief note towards the bottom of this NBR article states that 2degrees wants the ComCom to block the bid. To which I quote an earlier post:

coffeebaron: Huh?? 2degrees decides not to buy the extra spectrum, now they're complaining Vodafone could buy it? Well why did you not buy it 2degrees?

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  Reply # 972348 22-Jan-2014 16:23 Send private message

RadioSpectrum: Final 700 MHz spectrum block auctioned   The Ministry of Business, Innovation and Employment has today announced that Telecom has won the final block of 700 MHz radio spectrum. Telecom bid $83 million (+GST) for the final block of spectrum..


Guess that's why Telecom have put up some of their pricing to cover this..




Regards,

Old3eyes

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  Reply # 978488 1-Feb-2014 12:02 Send private message

Behodar:
openmedia: Shame.. I personally think there should be one Chorus style infrastructure provide for nationwide 4G and then telecos can provide services.

And personally I think that's the wrong approach since one failure could knock out all networks at once.


I think there should be one RBI-style network of towers that telcos can optionally use if they don't want to go and build their own, and that other networks can use in addition to the main cellular networks for wifi, fixed wireless or whatever. Monopolies are a nono if you want to avoid problems like Australia's many complicated NBN dramas.




Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

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