7.1 Introduction

108. As noted earlier, the Government has decided that the 2.3 GHz and 2.5 GHz bands should contain one or more (generously specified) managed spectrum parks to allow for the provision of local and regional services including providers of services to Māori.

109. Managed parks are intended to allow a number of users to operate services in a common band of spectrum on a shared and self-managed basis as far as possible. They are a new concept to New Zealand¹, and as far as we know, have not been implemented internationally, although there has been considerable discussion in radio spectrum literature on the concept of “spectrum commons” and shared spectrum use. Accordingly, we are in new territory, and the views of potential users are essential for settling on how managed spectrum parks (MSPs) should be operated.

110. The newness of the concept also means that any rules, including relating to licences, are likely to require amendment over time in the light of experience and the resolution of practical issues. 

Objectives

111. The Government’s objectives for allocating spectrum as MSPs can be specified as follows:

• efficiency – to ensure efficient use of spectrum by maximising the sharing of the resource
• flexibility – to improve flexibility through self-management and user coordination
• availability – to increase deployment of wireless technologies and services, particularly in rural and local areas
• innovation – to encourage development of new wireless technologies and services, and
• competition policy – to maintain an open environment for wireless service providers, with room for new entrants.

112. In considering design options for implementing MSPs, the Ministry’s objectives are to:

• Best deliver on the Government’s overall objectives for MSPs
• Facilitate or enable provision of acceptable quality of service
• Minimise administration costs for the Government
• Minimise direct and indirect compliance costs for users
• Provide for as much self-management as possible consistent with other achieving other objectives.

Proposed configuration

113. As noted in the lot design chapter, the options outlines in this paper provide for three bands for MSPs, totalling 75 MHz of spectrum, as follows:

• 25 MHz in the 2.3 GHz band, from 2370 MHz to 2395 MHz
• 35 MHz in the 2.5 GHz band, from 2570 MHz to 2605 MHz
     (or in Option B and C, from 2535 MHz to 2570 MHz)
• 15 MHz in the 2.5 GHz band from 2675 MHz to 2690 MHz
    (or in Option C, 20 MHz from 2670 MHz to 2690 MHz)

¹There are currently three methods of allocating radio spectrum in New Zealand, as follows:

• Management rights regime. This is the standard approach for high value spectrum where there is strong interest in providing a national service. Management rights or spectrum licences under Crown-owned management rights provide users with a time-limited, exclusive property right over spectrum. Allocation is usually by auction.
• Radio licence regime. The majority of New Zealand’s spectrum is administratively assigned as radio licences. Radio licences are issued for a set period, subject to the payment of annual fees. They are normally allocated on a first-come first-served basis and are not inherently tradable.
• General user licences. General user licences permit the use of specified spectrum with no requirement for individual licensing or fee payments. These licences have technical restrictions but are non-exclusive and do not provide users with any protection from interference. Both General radio licences and General spectrum licences are possible.