2.2 Overall policy settings

13. The Government’s overall policy settings and objectives for allocation of management rights to radio spectrum are now well established. Policy background is set out in the Ministry’s review of Radio Spectrum Policy published in 2005⁴. Current policy settings can be summarised as follows:

• Where commercial demand for spectrum exceeds supply, to allocate spectrum competitively by way of auction in order to facilitate:

1. efficient use of spectrum and maximum value to society;
2. investment in infrastructure, particularly broadband services;
3. competition between service providers.

• To allocate spectrum by way of management rights for up to 20 years⁵. The management rights entitle right-holders to grant licences for use of spectrum. Licence holders are required to not cause interference to other spectrum users.
• To facilitate competition by setting acquisition limits on rights (as part of the initial allocation).
• To ensure flexible and efficient use of spectrum over time in the light of changes in technology and businesses by allowing trading of spectrum (subject to any acquisition rights and the business acquisition restrictions in the Commerce Act).
• On a case by case basis, to encourage use and investment by setting ‘use or lose’ requirements.
• To provide for technology neutrality by allowing flexibility of use and tradability.
• To ensure that sufficient suitable spectrum is available to deliver Government social and cultural policy objectives, including the promotion of Māori language and culture.

⁴ Review of radio spectrum policy in new zealand - report

⁵ Where there are existing management rights, government policy, subject to a case by case review, is to offer non-competitive renewal five years before expiry at a “market price”. The scope of the review is wide, but relevant considerations include use of individual rights and the band as a whole. Where the spectrum subject to management rights has not been used over its life-time and there has been little or no spectrum related investment, government policy is generally not to offer renewal rights. The Government has determined that this applies to spectrum in the 2.3 GHz band and no renewed rights are being offered. There are currently no management rights in the 2.5 GHz band.