2degrees welcomes 4G spectrum allocation announcement.

2degrees CEO Eric Hertz said the detail of the Government’s planned auction of 700MHz spectrum will be crucial in determining whether Kiwis will continue to benefit from effective three-player competition in the mobile market.

“It’s important that this spectrum is allocated at a price, and with conditions, that promote competition and investment in the transition to 4G services. We look forward to seeing the proposed detail of the allocation – including the reserve price - over the coming months which we hope will ensure all three players can continue to compete actively for kiwis’ business.”

Mr Hertz says the allocation of the 700MHz spectrum is extremely important for all New Zealanders.

“Kiwis have fallen in love with smartphones and they have become an essential daily tool. On our network alone, data usage has almost tripled in the last year. Spectrum effectively provides the ‘motorway’ for faster mobile internet services, and we need it to increase capacity on our network to meet our customer needs – now and in the future.”

Mr Hertz says it’s also important a long-term view is taken regarding the allocation.

“As the Minister said in her statement today, this is a once-in-a-generation opportunity so it is important long-term competition and the benefits to consumers are prioritised over any short-term windfall for the Government.” Mr Hertz says the company is in a continual stage of investment.

“An example of this is our recent $15 million investment for additional 1800MHz spectrum from Telstra. This demonstrates the importance of spectrum going forward to meet our customers’ capacity demands. This brings our total investment up to $550 million.”