Government to make offer on UHF TV licences - 7 December 2004

Media Statement from Hon David Cunliffe, Associate Minister of Communications

David Cunliffe, Associate Communications Minister, today announced decisions on renewal of commercial UHF television licences.

These licences are currently used for services such as Sky UHF, Prime, Trackside and regional commercial television and expire in March 2010.

"Cabinet's decisions meet broadcasters' needs by giving them certainty through to 2020 at a fair cost while ensuring the Crown, on behalf of all New Zealanders, receives a reasonable return for use of the radio spectrum resource." said David Cunliffe.

A set of UHF licences covering the main urban centres would cost around $0.96 million. This price is the mid point of a range recommended by a robust analytical process.

"Licensees should expect renewal offers around March next year. If licensees prefer they can opt for the licences offered to be auctioned." said David Cunliffe.

The government has decided on a renewal time of 10 years rather than 20 years because of the likelihood of technology changes, including digital television.

"No-one can predict the state of technology beyond 2020. Our ability to respond prudently to technology changes would be limited if current licences were renewed beyond that point. Renewal to 2020 provides investment certainty for existing analogue services, while enabling reassessment in 2015, by which time the television market may have changed significantly." said David Cunliffe.

Decisions also cover commercial rights in the 2.3GHz band, which may be used for broadband services in the future.

"These rights will not be offered to current rightholders due to minimal use to date and the need to revise technical parameters. This spectrum will be repackaged and allocated in due course."

"The decisions are a very good outcome for the parties involved. We have sought a balance between the services provided by existing broadcasters, options for the future use of the band, and offering renewed rights at a fair price." said David Cunliffe.

Contact: Julian Kersey 04-471 9116, 021-811 999