3. The New Zealand Radiocommunications Industry

Telecommunications

Broadcasting

Public Safety and Security

Other Radiocommunications Services

This chapter provides an overview of the radiocommunications-based industries sector in New Zealand.

Telecommunications

86. Telecommunications services include the following.

• Fixed services, including "backbone" point-to-point distribution networks that carry aggregated telephone, Internet services and broadcast services to and from distribution points.
• Cellular mobile, including first, second and third generation (1G-3G) cellular technologies.
• Fixed wireless access (FWA) point-to-multipoint services.
• Land mobile services: e.g. radiotelephones in the emergency services and logistics industries.
• Fixed satellite, including international telephone traffic, internet via satellite and international distribution of news services.
• Mobile satellite.
• Maritime and aeronautical satellite, including traffic between vessels and shore stations.

87. Since the corporatisation of the Post Office in 1987 and the introduction of competition policies, telecommunications services have largely been provided commercially, through:

• customer services purchased from such telecommunications service providers as Telecom, TelstraClear or Broadcast Communications Ltd (BCL); or
• private networks tailored to organisational needs: e.g. those operated by Transpower and the Airways Corporation.

In addition, a number of government agencies operate land mobile networks, including the Police, Defence Force, Customs and Conservation.

Fixed Services

88. Fixed services are an essential element of "backbone" distribution of telecommunications, providing wireless connections between main centres at a modest cost. Typically, a provider will look to a combination of radio and cable (copper or fibre-optic) in the provision of services (e.g. Internet), deployed according to their relative cost in any particular location. Assignment of the traditional fixed service bands used for backbone services is through the RLR, with the exception of two UHF bands sold under the MRR. Some operators are initiating backbone links in "public park" spectrum under GULs. Other fixed services provide point-to-point links, typically used for the delivery of rural telephone services (Telecom) and by territorial local authorities (TLAs) for telemetry (e.g. monitoring river levels).

Cellular Telephony and FWA

89. These sectors provide customer access to telecommunications services. Established companies have been joined by such newcomers as Woosh Wireless and, more recently, Compass Communications and Counties Power, who provide telecommunications services over Fixed Wireless Access networks. Internet service providers are offering broadband services to their customers, while electrical line companies are looking to exploit and expand on their network experience and customer knowledge in establishing local telecommunications networks to supplement their electricity offerings.

90. Cellular telephony encompasses first, second and third generation (1G-3G) services, all operating in spectrum that has been assigned in the form of management rights to, inter alia, Telecom, TelstraClear, Econet and Vodafone. A block of cellular 3G spectrum is reserved for assignment to Te Haurahi Tika Trust, to promote Māori participation in the knowledge economy.

Mobile Services

91. Mobile radio services operate in the VHF and UHF land mobile bands and are assigned through the RLR. Users include transport companies, police, local authorities and taxi operators. Teamtalk is the largest holder of licences in this spectrum.

92. Analogue land mobile is an older technology progressively being superseded by digital delivery. The land mobile spectrum is heavily congested and there is little room for growth or for new entrants, particularly in such areas as Auckland City. Recent extensions to the lower UHF mobile bands, also used by public safety and security services, will alleviate the situation.

Other Services

93. Outside broadcast bands are used for television linking from such special events as horse racing, the America's Cup and other significant cultural or sports occasions. A new band has been made available for outside broadcast services but operators seem reluctant to move into it, probably because of the cost of new equipment that would be needed to operate in the band.

94. Paging services are licensed nationally under the RLR, and may also be implemented "on-site": for example, in rest homes, hospitals, and factories. While paging is generally regarded as a sunset technology, there are specific applications (e.g. mobilising volunteer firefighters) that require its ongoing use.

Broadcasting

95. Broadcasting services are accessible to virtually all New Zealanders. Providers of these services include commercial entities, Crown owned companies, incorporated societies, iwi, private trusts and individuals.

Radio

96. New Zealand has more than nine hundred licensed radio broadcast transmitters, of which about five hundred are operated by commercial providers and four hundred by public service and non-commercial services. They include MF-AM and VHF-FM sound broadcasting, and Radio New Zealand's international SW service. Some sound broadcasting is carried on the Sky TV satellite network. In addition, a significant number of local broadcasters operate under GULs.

97. The allocation of spectrum bands to broadcasting is determined largely by the ITU Radio Regulations and by the configuration of equipment sourced from overseas markets. Advice on the use of commercial spectrum (i.e. spectrum used by commercial broadcasters) is provided by MED, while advice on the assignment of public interest and other non-commercial broadcasting spectrum is provided by MCH and TPK. MED retains responsibility for technical planning and licence administration.

98. There is a greater concentration of commercial services in major population centres, where the density of population enables viability to be established more easily, whereas services in rural areas are fewer. Government supported services, on the other hand, tend to be available at much the same level in all areas.

Television

99. At present most television services are based on analogue terrestrial transmission using spectrum in the VHF and UHF bands, broadcasting from hill-top sites to give coverage of main population areas, that are supplemented by a multiplicity of low-powered transmitters in areas shaded from the main sites. A few local TV broadcasters transmit over the terrestrial network.

100. Satellite television broadcasting is available in digital format, through Sky TV's pay-to-view network, to which approximately 40% of New Zealand households subscribe. Sky TV uses a conditional access system to encrypt most programmes, including TV3, TV4, Prime and Trackside. TVNZ has its own satellite capacity, which it uses to broadcast unencrypted regional versions of TV One and TV2. TVNZ does not currently promote a separate free-to-air satellite service, but a number of independent retailers sell free-to-air satellite receiving equipment to the public.

101. Telecom NZ has recently announced plans to distribute television services in digital format over its broadband network, which can commence without alteration to current government policy. TelstraClear currently distributes Sky programmes via its cable system.

102. All broadcasters are required to comply with codes approved by the Broadcasting Standards Authority or the Advertising Standards Authority, as applicable. There are defined procedures for complaints about content to be investigated and, if confirmed, remedied.

Public Safety and Security

New Zealand Defence Force

103. The New Zealand Defence Force (NZDF) is an extensive user of spectrum. The band from 230 to 405 MHz is recognised nationally and internationally 13 (e.g. Australia, Canada, the USA and the United Kingdom) as reserved for defence/security purposes. These bands are largely self-regulated by NZDF in New Zealand, where their main use is for tactical communications. Some frequencies are assigned to non-military uses, including aircraft navigation systems and civilian short-range devices (e.g. garage door openers). Non-defence access to the 230-400 MHz spectrum is, in practice, subject to NZDF agreement.

104. NZDF uses other frequencies, both routinely (e.g. via commercial service providers) and for specific military functions (e.g. radar), in bands shared with non-military users. Some sea-borne and airborne navigation devices use internationally-agreed aeronautical and maritime bands, and employ common technical specifications. On occasion NZDF uses commercial cellular or land mobile spectrum, by prior agreement, for such purposes as large-scale military exercises.

105. All NZDF radio and spectrum licences are issued by MED under protocols that provide scope for NZDF to meet its operational needs without revealing sensitive information.

Public Safety and Security Services

106. Non-military public safety and security (PSS) services include such organisations as police, civil defence, fire, ambulance, coastguard, surf lifesaving, search and rescue, and mountain rescue. While some of these services are professional and uniformed, others are partly or wholly staffed by volunteers.

107. All PSS services require a substantial wireless infrastructure, carrying both voice and data, with some commonality between services (e.g. between police, fire and ambulance services at road accidents). Civilian public safety groups that operate only in emergency situations (e.g. local search and rescue) may use communication networks operated by organisations whose routine responsibilities lie elsewhere (e.g. the Department of Conservation). The Fire Service is a significant user of pagers, especially for contacting volunteer firefighters.

108. Advice to MED on frequency allocation is provided by the Public Safety Radio Frequency Management Group (PSRFMG), whose membership is drawn from all of the major PSS organisations. PSS services pay standard administrative costs for radio licences. Because the majority operate in patrol and/or emergency response mode, the greatest use of spectrum is for mobile services, occasionally in areas so remote that portable transmission facilities are essential.

Civil Defence and Emergency Management

109. Spectrum assignments for national and local emergency management are planned by the Wellington office of the Ministry of Civil Defence and Emergency Management (MCDEM) and implemented through the RLR regime. Most of the assignments are in the HF and VHF bands. The range and penetration of these frequencies make them attractive for emergency communications, and MCDEM has at present no intention of migrating to UHF or higher frequencies.

110. MCDEM is represented on PSRFMG. The main business of the spectrum manager at MCDEM is to find and assign frequencies to Territorial Local Authorities (TLAs) for emergency radiocommunications, and to manage the national HF radiocommunications network. An early 1990s' intention to migrate all TLAs from the old HF civil defence bands to the VHF ESA band has been defeated by lack of funding for the requisite VHF equipment and by saturation of the ESA band. Approximately one-third of TLAs have yet to migrate to VHF, where there are now no spare frequencies.

111. MCDEM's national HF network is scheduled to be upgraded to a combined satellite-phone, VHF and HF system, but awaits the implementation of a national Crisis Management Information System. This will be based on a broadband data network with a microwave backbone leased from a commercial operator (e.g. Telecom or BCL).

Aeronautical and Maritime Services

112. This group of services operates largely at frequencies determined by international agreements and conventions, and is accessed mainly by shipping and aircraft, and by vehicles and recreational users (e.g. trampers, hunters) operating in remote areas. Its primary purpose is to ensure safety, either direct (location, and protection of crew, passengers and cargo) or indirect (protection of third parties and property from, for example, collision impact). Services take the form of:

• navigation aids (e.g. radio beacons, Global Positioning System satellites);
• air/sea traffic control (e.g. air-to-ground/ship-to-shore communications, Instrument Landing Systems [ILS], VHF Omnidirectional Radio range [VOR]);
• collision avoidance systems (e.g. radar, transponders, air-to-air/ship-to-ship radio);
• emergency assistance systems (e.g. INMARSAT, COSPAS-SARSAT, EPIRBs, Search and Rescue); and
• commercial and personal communications (e.g. radio, cellular and satellite telephony).

113. Most of the spectrum used in this category is clearly defined, under ITU and other international conventions, as being for aeronautical, maritime or emergency use. Access is managed by, variously, the Civil Aviation Authority, the Maritime Safety Authority and the Ministry. All licences are assigned under the RLR, with many aeronautical and marine services operating under GULs.

114. A large number of licences have been issued for these bands, the majority of which are for mobile radio operating on common frequencies (e.g. in fishing vessels, recreational craft and small aircraft). There is increasing use overseas of satellite communications, particularly for aeronautical and maritime broadband data applications.

115. A number of other networks may periodically be employed for air, sea and land emergency communications, notably the Department of Conservation's radio network (1248 licences), the national Police network, and the cellular telephony networks.

116. As with defence and other public safety and security services, spectrum is used intermittently, as and when the need arises, but needs to be kept clear of other traffic and/or interference to meet such needs. Efficient use is not, relative to public safety, the priority.

Other Radiocommunications Services

Earth-Based Radio Astronomy

117. Radio astronomy is the study of celestial objects through passive 14 observation of radio waves emitted or reflected by these objects. The domestic band plans for radio astronomy mirror largely the ITU assignments. A number of bands are dedicated exclusively to radio astronomy use. Other bands are shared with fixed terrestrial and mobile services that have the ability to interfere with the radio astronomy use.15

118. Because there is no need for radio astronomy users to acquire a licence, it is difficult to determine the level of occupancy in these bands, and thus whether the amount of spectrum set aside under ITU provisions is utilised efficiently. The degree of protection afforded to astronomy sites in particular bands has the potential to constrain the deployment of alternative services.

119. Although this spectrum band does not generate any revenue to the Crown for its use, there are potential costs associated with investigating any interference queries. To date this has been largely mitigated by the ITU regulation which requires the user to take all reasonable steps to prevent it. Such costs have, to date, been negligible.

Meteorological Services

120. A number of bands are dedicated to such meteorological services as weather balloons, radar and satellites.

Amateur Services

121. The amateur bands operate as a public park, managed under the RLR. A licence entitles the operator to transmit within a particular band, but frequencies are not exclusively assigned. There is a requirement to obtain the relevant operator qualification prior to a licence being issued. Users of amateur bands are forbidden to operate for pecuniary gain.

122. Bands are allocated in accordance with the ITU Radio Regulations. Their provision acknowledges the potential of the hobby to advance the communication and technical skills of radio, and to enhance international goodwill. The amount of spectrum dedicated to the amateur services in NZ is large compared with the number of licensed users.

13 The agreed international range is 225 to 400 MHz. In New Zealand the 225-230 band is used for TV broadcasting.

14 i.e. it does not transmit RF, it merely receives it.

15 "The ITU has allocated some 2% of the spectrum below 50 GHz to radio astronomy for passive observation of cosmic emissions." Review of Spectrum Management, Professor Martin Cave, HM Treasury, March 2002, p.195.