Download Weekly: Government to allocate spectrum

Move comes as early access 5G auction canned

Government has directly allocated 160MHz of the 3.5GHz C-band originally set aside for this year's early access 5G spectrum auction. The move aims to speed up the 5G rollout after the Covid-19 pandemic put the planned spectrum auction on hold.

Allocation means the government will offer Spark and 2degrees 60MHz each, while the British-based Dense Air is able to buy 40MHz. Vodafone removed itself from the early access auction as the auction terms would require it to return some spectrum it is already using.

Rights for these C-band frequencies run until October 2022, when long-term rights will be allocated in a separate auction, which is scheduled for November 2022.

Significant infrastructure investment

Spark CEO Jolie Hodson says allocating spectrum this way means her company can move ahead with significant investment in 5G infrastructure. She says this will play a critical role as the nation responds to, and recovers from the pandemic.

She says: "...in a world where physical distancing will remain critical for some time, technologies that connect people virtually have a fundamental role to play in our economic recovery.”

Spark says it aims to switch on 5G sites in centres and regions across both the North and South Islands over the next year.

2degrees is moving more cautiously on 5G than Spark or Vodafone and may not have a 5G network before the 2022 auction. Dense Air is a wholesale wireless operator, which sells packaged services to carriers.

Ultrafast Fibre sold overseas

WEL Networks and Waipa Networks say they have agreed to sell their Ultrafast Fibre shares to First State Investments for $854 million. First State Investments is an Australian asset management company. WEL previously owned 85 percent of UFF; Waipa owned the remaining 15 percent.

The deal is subject to approval from the Overseas Investment Office. Earlier this week the government introduced a 'national interest' test to protect the nation's strategic assets. Any deal involving more than a 25 percent interest will be subject to the test.

Vocus buys Stuff Fibre

Vocus bought Stuff Fibre for an undisclosed sum. The move adds 20,000 customers to the 200,000 or so already with Vocus. The Australian-owned telco remains New Zealand's third-largest service provider with a market share of around 13 percent.

Broadband, pay monthly highlights as 2degrees boosts profit

2degrees turned in a $28.6 million profit in 2019, up 46 percent on the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation) came in at $147.5 million, 12 percent higher than last year. The company's latest financial statement shows a 32 percent increase in broadband subscriptions and an 11 percent increase in pay-monthly mobile accounts. Service revenue was up 10 percent.

RCG added 29 RBI2 sites during lockdown

The Rural Connectivity Group switched on 29 new sites during lockdown. This takes the total number of RCG sites to 92. The new sites provide fixed wireless broadband to more than 2000 homes and businesses in more remote parts of the country. At the same time, mobile services have been improved along another 110km of State Highways.

Call for digital inclusion

InternetNZ is behind a group of 20 organisations calling on the government for greater digital inclusion. They came up with an action plan covering five areas. They want affordable connectivity, devices for people who can't afford them, support for people with new connections, digital skill training for displaced workers and longer-term internet resilience. InternetNZ chief executive Jordan Carter says the work builds on the government's Digital Inclusion Blueprint which was published last year.

Chorus extends UCG contract

Chorus has extended its UFB2 and UFB2+ contracts with Universal Communications Group until 31 March 2022. It will also continue the UFB1 contract.