3.2.1 Cellular applications

As noted in the introduction, allocations in this band for cellular applications were reviewed following the acceptance of renewal offers for management rights by Telecom and Vodafone and their sale of management rights to the new mobile network entrant, 2degrees Mobile. The cellular allocations were rationalised further in January 2009 by swapping a Crown management right (at 935-939 MHz) with a 2degrees Mobile management right of equal size and value (at 841-845 MHz), which resulted in a reduced number of interfaces and created opportunities for increasing spectrum efficiency through aggregating spectrum within the 841-849 MHz and 935-945 MHz bands.

The current allocations in the 806-960 MHz band appear to be sufficient for current technology and future requirements as part of long-term evolution of cellular applications. However, a 1-MHz management right held by 2degrees Mobile, at 840-841 MHz (which might be paired with 885-886 MHz), is narrower than necessary for a typical cellular licence or network, and is therefore impractical for cellular applications. The 2degrees Mobile-held management right at 885-890 MHz is also not paired for cellular use, although it effectively serves as a guard band between CDMA (downlink) and the GSM (uplink) technologies used by Telecom and 2degrees Mobile respectively.

It is the Government’s policy to ensure effective spectrum use in making offers of renewal for commercial spectrum rights, and this is generally achieved through placing an implementation requirement upon the right-holder as a renewal condition. The management rights for the two unused portions of cellular spectrum, as well as the management right at 935-939 MHz, expire in 2012, and the Ministry’s intention is to develop appropriate renewal offers for these management rights later in 2009⁸ . The Ministry anticipates that industry feedback on this discussion paper will assist with developing appropriate conditions for the renewal offers.

Question 1

Do you consider that the Ministry should investigate any other options for further rationalisation of spectrum for cellular applications in the 806 960 MHz band? If so, please explain.

Footnote

⁸ The Government’s policy on the allocation of commercial spectrum rights on expiry is that, subject to a case-by-case review, the rights be offered for renewal to existing right-holders five years before expiry. In the case of these three management rights held by 2degrees Mobile expiring in 2012, the rights were only acquired within the last 12 months.