Telecom drops WiMax spectrum bid

Telco may have broken the law by launching acquisition before gaining clearance

Telecom has decided to drop its application with the Commerce Commission to acquire half of two radio spectrum Management Rights (MRs) from south Auckland lines company Counties Power.

However, Telecom has gone ahead with the acquisition without the commission’s clearance. This is, the commission says, a possible breach of section 47 of the Commerce Act. The section states that a person must not acquire assets of a business or shares if doing so has the effect of substantially lessening competition in a market.

Counties Power was originally intending to use the two radio spectrum management rights for its ISP Wired Country. Instead it sold Wired Country to Auckland ISP Compass Net, which retained half of each management right to continue the service.

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