AUCKLAND (WiMAX Day). On Tuesday of this week, the New Zealand government concluded an auction of 2.3 GHz and 2.5 GHz radio frequencies. A total of six bidders walked away with licenses for 215 MHz of spectrum which fetched a total of NZD 4 million (US$3.02 million) was paid.

Amongst the successful bidders were Telecom New Zealand, which paid NZD 906,000 for 40 MHz of 2.5 GHz spectrum. Vodafone New Zealand took 35 MHz of 2.5 GHz spectrum at NZD 670,000. Both companies already hold other spectrum licenses in New Zealand and have been testing WiMAX.

Woosh Wireless, which operates a successful broadband wireless network in New Zealand and had planned to migrate its network to mobile WiMAX, grabbed 35 MHz of 2.3 GHz spectrum for NZD 650,000. The auction was steeped in controversy when announced earlier this year as the 2.3 GHz spectrum managed by Woosh was not renewed by the government, and Woosh fought hard for its renewal rights.

In the end, Woosh paid a fair price for the spectrum at auction this week. Woosh CEO Kevin Wiley told WiMAX Day, “we are very satisfied with the outcome and believe that the block of spectrum we acquired will give us the most options in rolling out a network ahead of the other spectrum winners.”

CallPlus acquired 30 MHz of 2.5 GHz spectrum for NZD 500,000. The company has already launched WiMAX in the Auckland area using 3.5 GHz spectrum. The state-owned telecoms group Kordia also walked away with 35 MHz of 2.3 GHz spectrum, for which it paid NZD 593,333.

A surprise bidder in the auction was the Canadian firm Craig Wireless, which acquired 40 MHz of 2.5 GHz spectrum for NZD 1.05 million. Craig has been actively bidding for spectrum rights around the world recently, and has acquired licenses in Norway and Greece this year.

A well-balanced auction
This week’s auction was designed to encourage competing bids, but also was structured so that any one bidder could not bid the price too high and dominate the auction. Each company had a limit of 40 MHz that it could acquire.

The result was highly valuable spectrum that was auctioned “cheaper than a box of corn flakes,” as the government intended.

Communications and Information Technology Minister David Cunliffe stated that the “auction design strikes the best  balance between providing plentiful spectrum for WiMAX and potential next generation cellular uses.”

Martin Wylie, CEO of CallPlus, said “The government is to be congratulated for the approach taken to the Spectrum auction through establishing rules to ensure the spectrum went to a variety of new players who plan to build alternate networks, creating competition for the ultimate benefit of consumers”.