Telstra contemplates pre-sale spectrum swap with Vodafone NZ

18 Jul 2012

Australia’s Telstra, which recently agreed to sell its New Zealand fixed line unit TelstraClear to the UK’s Vodafone Group for NZD840 million (USD668.7 million), has indicated that it is considering swapping certain wireless spectrum rights with Vodafone New Zealand ahead of the transaction. If realised, it could then look to sell them on separately. The plan was included in Vodafone’s clearance application, which was lodged with the antitrust regulator this week. The two companies intend to swap spectrum rights to ensure that Vodafone does not exceed a Ministry of Economic Development (MED) cap on frequency holdings in the 2100MHz band, and will leave Telstra holding rights in the 1800MHz band. The mobile giant stated: ‘Vodafone expects that Telstra Corporation will offer retained radio spectrum for sale which will allow other providers to increase their spectrum holdings. [The spectrum] is contiguous with 2degrees’ existing allocation, potentially allowing 2degrees to obtain 25MHz of contiguous spectrum in the 1800MHz band, equivalent to Vodafone and Telecom.’

New Zealand, Telstra (incl. Belong), TelstraClear, Vodafone New Zealand