5.2.1 Dimensioning a nationwide block for mobile broadband and other new uses – Block D

The requirements for digital television licences will vary throughout the country. In some geographic areas⁸ there are no known requirements for transition licences and no contractual obligations to provide for further analogue licences, and therefore no potential digital conversion licences are required in the period after 2010. Theoretically therefore the entire band from 502 – 806 MHz could conceptually be available for allocation to new uses in these geographic areas. Digital television services in these areas are available through a nationwide satellite service.

However in other areas there are commitments to provide for a maximum of 22 digital licences⁹ (including a mix of main and infill use) for both digital transition and analogue conversion licences. The band planning is based on the government meeting its obligation to provide 22 channels which comprise:

• 3 Main coverage licences (Freeview usage).
• 3 Infill coverage licences (Freeview usage).
• 6 Main commercial renewal licences (5 SKY, including PRIME and MTS, plus NZRB).
• 6 Infill commercial renewal licences (5 SKY, including PRIME and MTS, plus NZRB).
• 2 Main coverage commercial renewal licences (Kordia, no infill).
• 2 Unallocated (1 main, 1 Infill).

Each licence requires 8 MHz of spectrum and therefore 22 licences could occupy 176 MHz of spectrum, which is around 60 per cent of the available UHF frequency band. In addition to these spectrum commitments it will be necessary to consider whether additional spectrum should be included for technical compatibility purposes between services (i.e. guard bands) or whether this can be designed into the specific licence allocation process.

Later sections of this report outline further policy issues that government needs to consider that may affect the assumed spectrum requirements for digital television licences; as a consequence, it is inappropriate to finalise an exact number of licences (and consequently spectrum subdivision) at this time.

Even where there are licence commitments, these are not uniform¹⁰. In some areas it could be as low as 12, or up to the 22 identified above. Some flexibility in future utilisation should therefore be considered.

In broad terms, the current band has just over 300 MHz of available spectrum. It seems clear that there may be commitments for digital television licence requiring a maximum of 2/3rds of this band in some geographic areas.

It is therefore proposed that approximately 1/3rd of the current band be treated as being available for nationwide allocation for new uses, with the exact spectrum limits being determined as a result of other proposals in this paper.

Question 4

Do you agree with approximately 1/3rd of band being considered for allocation to new uses on a nationwide basis? If not, what would you prefer and why?

Dimensioning a Core Nationwide Television Block – Block A

The allocation or reservation of a single uniform block of spectrum for solely television use in all geographic areas of New Zealand is considered both unnecessary and inefficient over the long term. However it is also considered prudent to make provision of some spectrum for potential geographic expansion of digital television¹¹ services beyond the current 75 per cent population coverage.

In all probability the future geographic coverage of terrestrial digital “footprints” will be determined by a combination of commercial and perhaps policy factors. There may well be a situation where a core free-to-air coverage is provided, but not all programme owners wish to extend their terrestrial coverage for commercial reasons. Commercial licence owners will also need to make decisions on the extent of their investments in lightly populated areas.

It is therefore proposed that a core reservation of 1/3rd of the frequency band be treated as being available for nationwide use for digital television licences, with the exact spectrum limits being determined after technical band planning.

For comparative purposes, the current Freeview service is provided using three licence sets which, when allowing for both main and infill coverage in an area, require six licences or 48 MHz of spectrum. The proposed core television reservation of 1/3rd of the band would be approximately 100 MHz (six licence sets with main and infill coverage) or double that used by the current Freeview platform. Each licence is capable of approximately nine SD programmes meaning that the core reservation could accommodate over 50 SD programmes nationwide.

Question 5

Do you agree with a core reservation for digital television of approximately 1/3rd of the UHF band on a nationwide basis? If not, what would you prefer and why?

Footnotes

⁸ These areas are generally outside of the main cities and include both provincial centres and surrounding areas of low population density in Northland, Eastland, Westland, Southland, Central North Island and Nelson/Marlborough.

⁹ The Government has contractual obligations in Auckland to provide the current three transition licence sets on a long-term basis (using up to six RF channels in any area). There are also commitments for up to six analogue licence sets being converted to digital use (using a further 12 RF channels), and a further four RF channels for potential commercial main site conversions and other government needs. This makes a total of 22 RF channels. A further potential requirement is for a licence at Whangaparaoa, but it has been assumed at this stage that this would be technically compatible with a Pine Hill licence (in all necessary parts of the service area) and that it would not require a further RF channel.

¹⁰ The Auckland requirement is for 22 channels, with Waikato/Tauranga requiring 20, Manawatu/Hawkes Bay 21, Wellington 20, Christchurch 18, and Dunedin 15. The variation relates to the number of main area coverage stations and whether infill capacity is required.

¹¹ The further extension of digital terrestrial services will need to recognise normal commercial factors, as well as the increasing adoption of satellite services where there is currently no terrestrial digital footprint.