Review of 3G spectrum cap

A cap of 15 MHz 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.

On 17 October 2003 the Associate Minister of Communications, David Cunliffe, announced a review of the spectrum cap that applies to 3G radio spectrum auctioned in 2001. On 27 January 2004 the Minister announced the Government's decision to continue the spectrum cap for a further period until May 2007 in order to facilitate competition in the future market for 3G mobile telephony services.

On 9 February 2007, after consultation with industry, the Minister of Communications announced the decision to extend the cap for a further three years.