Expiry of rights discussion paper released - 2 June 2004

Media Statement from Hon Steve Maharey, Minister of Broadcasting and Hon David Cunliffe, Associate Minister of Communications

Broadcasting Minister Steve Maharey and Associate Communications Minister David Cunliffe today released a discussion paper on the reallocation of commercial spectrum rights when existing rights expire.

David Cunliffe said that the paper gave a clear indication of the Economic Development Ministry's thinking on how best to apply the expiry of rights policy announced last year.

"The government has agreed, subject to case-by-case reviews, to offer existing commercial rightholders the opportunity to purchase a replacement spectrum right five years before expiry of the current right. Where appropriate, the price offered will be based on a formula developed by consultants last year. If the rightholder does not wish to pay the price, the spectrum right will be re-auctioned." David Cunliffe said.

"The government has confirmed that it will continue to make licences available without charge for non-commercial radio, such as Radio New Zealand, Access and student radio, as well as for Māori broadcasting." Steve Maharey said.

"The expiry of rights policy ensures the Crown, on behalf of all New Zealanders, receives a fair financial return from the radio spectrum resource, while providing certainty to commercial rightholders," David Cunliffe said. "The first rights expire in early 2010, so it is important to finalise implementation arrangements quickly if we are to have these rights available for purchase early in 2005."

Spectrum rights can be issued for periods of up to 20 years. The first rights, for UHF television, expire in 2010. Rights for AM and FM sound broadcasting expire in early 2011 and VHF television rights (TV1, TV2, TV3 and C4) in 2015. Expiry dates for cellular telephone rights vary, with the first rights expiring in late 2011.

Copies of the discussion paper are available from the Ministry of Economic Development's website. The closing date for submissions is 30 July 2004.

Contacts: Michael Gibbs 04-471 9154
Julian Kersey 04-471 9116, 021-811 999