3.2.1 Management rights and analogue licences

The VHF Television bands

VHF Band I is from 44 – 68 MHz, although a section from 51 – 54 MHz is not used for television services.

VHF Band III is from 174 – 230 MHz and is fully used by television services.

There are analogue television licences in the VHF bands³ which are largely used for the TVONE, TV2, TV3 and C4 programmes. All licences in these bands expire in August 2015, however the Ministry of Economic Development (MED) has agreements with the licence-holders that the licences will be transferred back to the Ministry, or cancelled at the DSO date. The relevant Crown-held management rights will expire in August 2015. Decisions about the recording and allocation of future management rights would normally be made in 2010, being five years before expiry. Such decisions would need to take into account outcomes and decisions relating to the digital dividend.

The UHF Television bands

The UHF band presently allocated for television use is from 518 to 806 MHz. The frequency range is managed as follows:

• 518-582 MHz – Management Right No 1, combination of analogue and digital licences, expiry March 2010.
• 582-614 MHz – Management Right No 195, owned by Māori Television Service, expiry November 2013.
• 614-646 MHz – Radio licences⁴ for non-commercial allocation, as well as some digital television licences and amateur TV repeater licences in channel TV39.
• 646-806 MHz – Management Right No 2, combination of analogue and digital television licences, expiry March 2010.
  
  

Management Rights 1 and 2 are also used extensively by low power radio microphones under a General User Licence.

The spectrum between 502 and 518 MHz, adjoining Management Right No 1, is unallocated and is adjacent to the planned usage by mobile services in the 494 to 502 MHz band.

MED has renewal contracts with existing UHF analogue television licence holders which are due for settlement on or before September 2009. The corresponding current licence must be in use before settlement can occur. The renewal licences expire in 2020, after DSO is expected to occur. MED has therefore agreed that instead of renewal until 2020, licence holders may opt to extend the present analogue licence on a year-by-year basis until DSO at a preset price, but without the option of a future conversion to digital use.

MED has also published policies⁵ to allow holders of current UHF analogue licences to effectively convert the licences to allow digital technology to be deployed. The policies place implementation requirements on the new digital licences and require that the analogue licences held by the particular licensee be cancelled at DSO. MED will retain the ability to effect future changes of frequency of any digital licences issued, to enable implementation of an efficient digital frequency plan in the UHF bands.

Management rights for the period from 2010 to 2020 for the frequency ranges 518-582 MHz (MR No 212) and 614-806 MHz (MR No 213), along with various licences, have been created in the name of the Crown to facilitate the various commitments that exist. These are:

• Providing transition licences (3 sets) for digital use until DSO and, if required and technically feasible, engineering further licences for further geographic expansion beyond the present 75 per cent coverage of the population.
• Continuing the “transition” licences after DSO (at the then current level of population coverage) on a long term commercial basis;
• Providing new analogue licences (that can be converted to digital) for the period 2010 to 2020 for current commercially acquired licences, subject to terms of settlement;
• Providing, subject to prescribed terms, replacement digital licences for commercially acquired analogue licences;
• Providing, on a non-commercial basis and on prescribed terms, new analogue licences until DSO to parties holding non-commercially allocated licences for regional television services.

Footnotes

³ The frequencies used by television are recorded as Management Rights and therefore Spectrum licences (rather than Radio licences) are used.

⁴ A Radio Licence is the technical term for a licence using spectrum where a Management Right is not recorded. Where a Management Right does exist a Spectrum Licence is necessary.

⁵ The policies can be found at www.rsm.govt.nz.