4.1.3.3 Lot sizes and boundary conditions

The spectrum to be allocated to the market should be subdivided into lot sizes, with appropriate boundary conditions, to enable the most flexible use in order to maximise potential channel reuse. The Ministry suggests that an appropriate lot size for each management right would be 0.5 MHz as this is the channel size for a digital STL, while it is equivalent to two monophonic or one stereo analogue channel. Therefore, under the proposal that 6 MHz be auctioned, there would be 12 management rights of 0.5 MHz each. The auction process should be designed to allow parties to acquire blocks in a contiguous configuration, up to an acquisition limit¹⁸ .

The management right boundaries should have conditions that are appropriate for digital STL use, which would enable right-holders to use a digital STL, or if they chose, an analogue STL in an appropriate channel. Once allocated, the managers could negotiate different boundary conditions with their neighbours if they wished.

In addition, STL licences in 841-849 MHz would need to be compatible with cellular services operating in the management right up to 840 MHz. This might be facilitated by the Crown electing to retain its portion at the bottom of the band, i.e. 841-843 MHz.

Question 17

Do you agree with the proposed 0.5 MHz lot size if management rights are sold in the 841-849 MHz band? If not, what lot size would you prefer and why?

Question 18

Do you agree that the boundaries of proposed management rights in the 841-849 MHz band should be conditioned to enable digital STL use? If not, what boundary conditions would you prefer and why?

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