4.1.3.4 Competition issues

Competition safeguards also need to be considered. Both acquisition limits and implementation requirements have been used in past allocations.

Implementation requirements are more complex to apply in bands used for fixed linking than in, for example, bands used for mobile or broadband uses. This is because usage is inevitably uneven throughout New Zealand and different parties may assess the value of licences in the same area differently because of their business arrangements. No implementation requirements are therefore proposed.

Acquisition caps are a means of preventing monopolisation of the resource. The Ministry suggests that an appropriate acquisition limit may be 2.5 MHz. This would mean that at least three parties could acquire lots. The retention of the acquisition limit for a period of time would tend to inhibit speculative acquisition of spectrum. The Ministry therefore suggests that the acquisition limit might be retained for five years.

Question 19

Do you agree with the proposed 2.5 MHz initial acquisition limit for parties buying management rights in the 841-849 MHz band and retention of this limit for a five-year period? If not, what limits and time period do you prefer and why?