2.1 Background

The radio spectrum is an important part of an effective ICT infrastructure in New Zealand, which contributes to achieving higher productivity and economic growth. The Ministry undertakes periodic reviews to ensure that New Zealand spectrum allocations are best fit with existing and planned local, regional and international environments, to improve the overall efficiency and effectiveness of the radio spectrum, and to maximise economic benefit to New Zealand through enabling the introduction of new technologies and applications, and enhancing competition.

The radio frequencies from 806 to 960 MHz are considered to be the “prime real estate” of the radio spectrum – this band’s excellent propagation and bandwidth characteristics, and the consequent lower cost of deploying services compared to higher frequency bands, means it is highly valued by users.

The Ministry began a two-stage review of this band following the sale of management rights in the band by both Telecom and Vodafone to new market entrant 2degrees Mobile¹ , which occurred as part of the 2007/08 cellular management rights renewal process.

The first stage of the review examined the allocations of cellular spectrum in the band and found that a more technically efficient and commercially viable allocation of cellular spectrum could be achieved by swapping a Crown management right at 935-939 MHz with the 2degrees Mobile-held management right at 841-845 MHz.

The management rights swap was completed in January 2009. The resulting ownership arrangements now allow greater usage by the new entrant of the standard frequency range of GSM technologies and appear to be sufficient for current needs and future in-band transition to newer technologies. The Crown has also benefited from aggregating spectrum it manages at 841-849 MHz, providing the potential for a more technically efficient allocation.

The second stage of the review is the subject of this discussion paper, and is focussed on the spectrum used for non-cellular services and applications in the 806-960 MHz band. In this paper the Ministry analyses the current allocations for this spectrum, and discusses replanning options, including what might be the best use of the new 8 MHz band available at 841-849 MHz.

Footnote

¹ 2degrees Mobile acquired management rights from Vodafone and Telecom in March and April 2008 respectively.