7. Request for comments

Summary of questions

1. Case-by-case review

2. The recommended pricing approach

3. Process and terms of renewal

Summary of questions

62. Submissions are invited from interested parties in response to each of the questions outlined in this paper, which are summarised below. To assist with their submissions, respondents may wish to refer to the PwC-NZIER report and the feedback from CRA International released with this paper.
    

1. Case-by-case review

Issue 1.1

What significant changes in cellular technology and in the cellular market do you foresee within the next 10-20 years? How might these changes affect the future use of the 800 MHz and 900 MHz bands?

Issue 1.2

What is the current level of spectrum-related investment in the 800 MHz and 900 MHz bands? How might the use of these bands be optimised?

What are your intentions in the next few years with respect to this spectrum?

Issue 1.3

Should rights to unused spectrum be renewed? Why or why not?

Issue 1.4

Which of the three options with respect to the length of the renewal period is appropriate?

If you do not agree with any of these options, what alternative timeframes do you suggest? Why?

Issue 1.5

Do you have any comments on the appropriateness of applying the Covec formula to the New Zealand cellular market?

Issue 1.6

Do you have any comments on the approaches that were examined as alternatives to the Covec formula in valuing spectrum for the New Zealand cellular market?

Are there any other approaches that should have been considered and why?
 

2. The recommended pricing approach

Issue 2.1

Is the proposed incremental ODV approach, benchmarked against New Zealand and overseas spectrum values, a reasonable and appropriate approach in approximating a market value for management rights in the 800 MHz and 900 MHz bands? Why or why not?

Does this approach meet all policy objectives (fair market value, fair return to the Crown, transparent and simple to administer)? Why or why not?

Issue 2.2

Are there factors or inputs that should or should not be considered in the proposed methodology? Why or why not?

Issue 2.3

Do you have any comments on the benchmarking to be applied to the ODV-calculated value?

Issue 2.4

Do you have any other comments on the recommended approach?

Do you have any other comments on the consultants' report and peer reviewers' feedback released with this discussion paper?

Issue 2.5

If you do not agree with the proposed approach, what alternative approach would best meet all policy objectives?
 

3. Process and terms of renewal

Issue 3.1

Do you have any comments on the proposed timing of the renewal offers?

What would be a reasonable period for the incumbent rightholders to consider whether to accept or reject the renewal offers? Why?

Issue 3.2

Do you have any comments on the terms of offer?

Issue 3.3

Do you have any comments on the terms of settlement?

Would you prefer an early one-off payment or annualised payments? Why?

What should be the latest date for settlement? Why?

What should be the penalty for failure to settle on time? Why?

Issue 3.4

Do you have any comments on allowing purchasers to assign and transfer contractual rights and obligations prior to settlement?

Issue 3.5

Do you have any other comments on the process and terms of renewal?

4. The auction alternative

Issue 4.1

What would be the most appropriate design of auctioning cellular spectrum, following a rejection by incumbent rightholders of renewal price offers from the Government?

Issue 4.2

Do you have any comments on the use of an open, simultaneous multiple round auction design previously adopted by the Ministry for large commercial rights and licences (e.g. Auction 6 rules)?

Issue 4.3

Do you have any other comments on auction as an alternative to the renewal process?

Submission process

63. The Ministry prefers written comments to be provided by email to radiospectrum@med.govt.nz. If you would like to meet directly with officials, please make your request at an early date. Comments are requested by 25 August 2006.
64. You may also submit your comments to:
    
    Cellular Rights Comments
    Attn: Brian Miller
    Cc: Luz Rose
    Radio Spectrum Policy and Planning
    Resources and Networks Branch
    Ministry of Economic Development
    PO Box 1473
    WELLINGTON
    Fax: (04) 499 0969

65. Should you have any questions, please contact:
    
    Brian Miller: Ph 04-462 4221
    Luz Rose: Ph 04-474 2695
     

Posting and release of submissions

66. The Ministry may post all or parts of any written submission on this website. The Ministry will consider you to have consented to posting by making a submission, unless you clearly specify otherwise in your submission.
67. In any case, content of submissions provided to the Ministry are likely to be subject to public release under the Official Information Act 1982, following requests to the Ministry (including via e-mail). Please advise if you have any objection to the release of any information contained in a submission, and in particular, which part(s) you consider should be withheld, together with the reason(s) for withholding the information. The Ministry will take into account all such objections when responding to requests for copies and information on submissions to this document under the Official Information Act 1982.
     

Privacy Act

68. The Privacy Act 1993 establishes certain principles with respect to the collection, use and disclosure of information about individuals by various agencies, including the Ministry. It governs access by individuals to information about themselves held by agencies. Any personal information you supply to the Ministry in the course of making a submission will be used by the Ministry only in conjunction with the matters covered by this document. Please clearly indicate in your submission if you do not wish your name to be included in any summary of submissions that the Ministry may publish.