5. Process and terms of renewal

Timing of offer

48. Vodafone supports the Ministry’s proposal to make the renewal offer five years prior to expiry. If there are going to be changes in spectrum holdings then operators will require as much time as possible to make the necessary network changes. Vodafone believes five years is a good compromise giving adequate advance notice to operators.
49. Vodafone supports the offer being open for six months. This gives adequate time to existing right holders to go through the internal and overseas approval processes.
     

Settlement

50. Vodafone is happy with the Ministry’s proposed settlement process with a one-off payment made no later than six months before expiry, and no requirement to make an early payment or annualised payments during the term of the new right.
51. Vodafone proposes that there should be a binding commitment on the incumbent’s part to purchase the spectrum. Enforceable penalties should apply if the purchaser agrees to buy but fails to settle.
     

Assignment or transfer or rights prior to expiry

52. One of the key features of the Radio Communications Act is spectrum tradability. Not allowing the rights to be transferred prior to settlement limits the ability to trade spectrum. Thus Vodafone proposes that purchasers should be allowed to transfer or assign the rights prior to settlement.