4. Problem and status quo

As already noted, there is little incentive to efficiently use spectrum assigned under the RLR. The low cost of obtaining access to spectrum therefore creates the possibility of uncompetitive hoarding or otherwise inefficient use.

Given that there is little evidence of excess demand, the Ministry concluded in the discussion document that there is also little cause for concern around competition under the RLR. However, the study found that there are dominant players in certain frequency bands, reflected by the relatively small number of submissions that are usually received in response to the Ministry’s consultations on radio spectrum issues generally. This may be problematic in the future, should the spectrum become more congested.

Submitters largely agree that the RLR is adequate in meeting current demand for spectrum. They agree with the Ministry’s analysis of potential problems and the possibility of hoarding, but suggest that apart from a few isolated instances, there is no shortage in New Zealand. Congestion issues under the RLR are either unlikely to arise in the near future or should continue to be considered for re-planning and/or moving to the MRR on a case-by-case basis.

The Ministry agrees that more work could be done to enable users to request the investigation of alleged uncompetitive hoarding. This is discussed further in the next section.