Review of 3G Spectrum Cap

Media Statement from Hon David Cunliffe, Associate Minister of Communications

17 October 2003

The Associate Minister of Communications David Cunliffe announced today a review of the spectrum cap that applies to 3G radio spectrum auctioned in 2001.

A cap of 15MHz is currently in place to facilitate the development of competition in the provision of 3G mobile services in New Zealand. 3G technologies will support the development of high speed mobile data and innovative new service applications.

The caps were set for an initial period of three years, as set out in management right deeds between the Crown and successful bidders. However, the Crown reserved the right to extend the caps for a further period should that prove to be necessary to continue to facilitate workable or effective competition.

"The Government considers the development of 3G cellular services as very important to the economic development of New Zealand. We want to ensure that the interests of future 3G consumers are protected by maintaining the conditions that promote effective competitive entry."

The first of the management rights deeds are due to expire in May 2004. The Crown must notify the spectrum rights holders of any extension of the cap by February next year.

The Minister announced that Ministry of Economic Development officials will carry out the review this year, and that public input is now sought on this issue.

"I invite interested parties to make submissions on whether or not they believe the 3G spectrum cap should continue."

The closing date for submissions was 7 November 2003.

Interested parties are asked to send their views to:

The Manager Telecommunications and Postal Policy
Ministry of Economic Development
PO Box 1473
Wellington