Vodafone New Zealand has made known its expectations in view of the upcoming spectrum auction in the 700 MHz band. According to Vodafone head of corporate affairs, Tom Chignell, the Ministry of Economic Development (MED) is apparently laying the groundwork to release its preliminary plans later this month while the auction is slated for next year.

The radio spectrum is being released as part of the digital dividend, in the wake of the closing down of analogue television services.

As per Chignell, the 700MHz band has 45MHz (paired), in addition to a critical policy setting that will likely act as the spectrum cap. Apparently, the head of corporate affairs wants the cap set at a maximum block of 20MHz, although that would potentially leave just two out of the country’s three networks with enough spectrum for a nationwide LTE network.

According to sources, Chignell expects the 700MHz auction to bring in a net amount of between $127.85 million to $170.46 million for the government.

Vodafone and Telecom NZ happen to be the biggest telcos operating in New Zealand. The two companies have arrived at a resolution with regard to a long running dispute over the fees paid under the previous Telecommunications Service Obligation (TSO) regime. Earlier, Vodafone had deemed the fees it had obliged to pay to Telecom NZ as required by the TSO – the body that provides subsidized telecoms services in rural areas – too high.

However, the terms agreed upon by the two telcos as part of the settlement have not been revealed; stands to close the dispute in the attendance of both the Supreme Court and the High Court by way of a full and final settlement of all claims between Telecom NZ and Vodafone with regard to TSO related issues.

According to Telecom group general counsel Tristan Gilbertson, this settlement draws a line under a long-running, protracted legal process. In addition, the TSO funding regime has been replaced with a new arrangement for the funding of rural telecommunications services, and Telecom and Vodafone have recently embarked on a joint programme to greatly enhance broadband delivery across rural New Zealand.

The Commerce Commission and Supreme Court have been apprised of the settlement between Telecom NZ and Vodafone.

With an eye on a potential loss amounting to $22.5 million as a result of the 3G network problems, Alcatel-Lucent’s subsidiary based in New Zealand has apparently, set aside funds. The 3G network was built for Telecom NZ that had experienced a series of critical network failures.

For the year 2011, the company is understood to have taken a $10.3 million provision, in addition to another $12.2 million for the future, according to sources.

Early the preceding year, the WCDMA based network commissioned to the company had been a subject of a string of serious network failures. The failures were attributed to a lack of Radio Network Controller’s in the network and capacity restrictions elsewhere.

Eventually, Telecom NZ’s CTO had resigned, in addition to a number of local managers at Alcatel-Lucent.

­It has been confirmed by the Telecom New Zealand that its CDMA mobile network will be shut down as on 31 July, 2012. Previously, statements have been issued that the network in question will be available until the middle of 2012.

The WCDMA based “XT network” was launched in 2009. Ever since, Telecom New Zealand has asserted that it would phase out the CDMA network around middle of 2012. The CDMA network is expected to continue function as normal till that point. However, once the network has been closed, devices will not be able to make or receive calls, texts, or use data.

According to Telecom Retail CEO, Alan Gourdie, they are committed to providing a smooth and straightforward transition for CDMA customers to move to the XT network well in advance of its closure.

CDMA customers will also be able to keep their phone number, their contacts and any existing credit when they sign up to XT.

In a bid to assist customers, a range of XT handsets have been developed, offered exclusively for CDMA customers, a number of which cost $0 upfront. These offers are also known to be supported by a range of attractive plans.

Gen-i is also known to be working with its clients to make sure that they know in advance, what options they have prior to the closure of the CDMA network. Business clients will be required to get in touch with their Gen-i client manager for further information.