7. Conclusions

Demand for 900 MHz spectrum in the future is highly uncertain. It depends in part on the services an operator plans to offer, the network approach that it adopts in delivering those services, and how successful an operator is in the market.
900 MHz spectrum is likely to be most useful to provide wide area 3G coverage in relatively low use areas, i.e., areas outside the cities. Access to 900 MHz spectrum is unlikely to provide significant cost savings for urban networks.
The Ministry should rely on the existing renewal process to sort out the competing claims of operators for this spectrum. To intervene more directly in the allocation of spectrum risks distorting outcomes, and failing to maximise the value of spectrum for New Zealand.
Vodafone is likely to be the highest value user of 900 MHz spectrum in the future. Only Vodafone is building a nationwide wireless network. We are using all of our 900 MHz spectrum rights at present, and we will continue to invest heavily in this technology as we expand to compete across the whole telecommunications market.

Last updated 3 April 2008