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Price calculation spreadsheet
14 November 2003
Step 3: Enter original cost of right
Step 4: Enter original term of right
Step 7: Enter region if applicable
Disclaimer
This spreadsheet was provided as an accessory to the Covec report and is intended only to make the consultant's recommendations more transparent to right holders. It does not represent government policy and does not incorporate averaging of comparable rights, which may be applied on a case-by-case basis.
Introduction
This spreadsheet will calculate the price for renewing each individual spectrum right you hold, and provide the total cost for all rights. You are required to enter a number of inputs which are used as parameters in calculating the price.
When you have read the instructions below and are ready to start the calculation, please click the "Start" button.
The sheet named "Calculation" displays a block for each right. Within this block there are some yellow boxes - these are the only cells you need to enter data into. Use the "click here" link to switch between these instructions and the calculation sheet, do not click the "Start" button more than once, as you will lose any previous inputs by doing so.
At the start of the calculations, you will be prompted to enter the number of rights you have to renew. If you make a mistake however, you can add or remove rights by clicking the appropriate buttons at the top of the sheet. If you have more than 50 rights, you will need to split them into groups and use this calculator model once for each group.
Type your company name in the yellow box at the top of the first page.
Step 1: Description of rights
If you want to enter a description of this right, click at the top of the block where it says "Enter a description of the spectrum right here". Simply type in the box and your description will replace that comment.
Step 2: Enter type
Click in the yellow box next to "Type of right". An arrow will appear to the right of the box - click on this arrow and a menu will appear. Select the applicable type for this right.
Step 3: Enter original cost of right
Click in the yellow box next to "Original cost of right". Type in the amount that was originally paid for this right. For example, if it cost $100,000 simply type 100000.
Step 4: Enter original term of right
Click in the yellow box next to "Number of years covered by original period of right". Type in the number of years that your current right has been valid for, up to expiry. For example if the right covered a period of 20 years, type 20 in the box. You must include all years up to expiry, not only up to the current year.
Step 5: Enter renewal term
Click in the yellow box next to "Number of years renewed right will cover". Type in the number of years that you are renewing the right for. For example if the right is being renewed for 20 years, type 20 in the box. This period may not start for a number of years, but you should only include the term of the new right.
Step 6: Discount rate
If there is already a number in this box, you do not need to enter anything.
Step 7: Enter region if applicable
Complete this step only if this right is for radio or television. If your right is for radio or television, you will need to enter the region you are nearest to. Click in the yellow box next to "Region the right will cover". An arrow will appear to the right of the box - click on this arrow and a menu will appear. The menu shows territorial districts, regions and main islands. Select the region/area that is nearest to correct.
Note that if your right covers all of the North Island or South Island, or all of New Zealand, these options are at the end of the list.
Further information
Once all the data has been entered, the cost for this right will be displayed. This is the amount to be paid 5 years prior to the expiry of your current right. There is a reserve price which will be shown if the calculated amount is lower than this reserve. An equivalent annual payment, as an alternative to paying a lump sum, will also be displayed. If an annual payment is preferred over a lump sum, then this is the amount that is required to be paid in each year of the right period.
When you have completed this process, a summary table will be produced when you click on the button labelled "Click here to go to Summary Table".
Advanced users
The sheet Default Inputs allows you to flex the driving inputs of the calculations. These have been set according to the recommendations of the Covec report, but can be changed on this sheet. The left hand side of the sheet is where you can flex the inputs, and by clicking the button labelled "Reset to Covec Inputs", the original values will be restored. You can see the original values on the right.
