Spectrum management framework

17. Up to 1987 spectrum management in New Zealand evolved, as in many other economies, as a centralised, administered system. Under NZPO administration, frequency bands were allocated to services mainly in accordance with ITU recommendations¹⁶ and considering the frequency range of available transmitting and receiving equipment. Channelling plans and technical standards¹⁷ were determined, albeit with limited private sector input, and made publicly available. These spectrum planning decisions were largely based on technical efficiency and ITU provisions, rather than economic criteria.
18. Provided the NZPO monopoly on provision of telecommunication services was not compromised, radio licences¹⁸ were granted, essentially on a 'first-come-first-served basis'¹⁹. Annual licence fees were adjusted to recover licensing administration costs, including interference management and ITU membership. While a licence could, in theory, be revoked at any time or not offered for renewal by the NZPO, this was a rare occurrence. There was a general public acceptance however, although not explicitly documented, that services might need to be relocated from time to time to alternative frequencies to make way for new services or technology developments. While no direct compensation was provided, long transition periods and other technical arrangements were usually employed to maximise the economic life of existing equipment investment. The clearance of 94 - 100 MHz of land mobile services, beginning in the 1970's to provide for the intoduction of FM broadcasting, was a notable example of this policy.
19. On 1 April 1987 the NZPO was split into three state-owned businesses (SOE's) and the regulatory functions, including radio spectrum management, were transferred to the Department of Trade and Industry (DTI)²⁰, and administered under the Telecommunications Act 1987. New regulations were passed in late 1987²¹ that, while continuing the Telecom monopoly²², for the first time prescribed criteria that the Secretary of Trade and Industry was required to have regard to when considering whether or not to grant radio licences²³. These were:
    1. International agreements (eg the ITU)
    2. The "public interest in achieving the maximum benefit from the radio spectrum"
    3. Technical compatibility of equipment
    4. Government policies for broadcasting and telecommunications.

Footnotes

¹⁶ The International Telecommunications Union (ITU) had its foundation in 1865 with the electric telegraph and later encompassed radio. New Zealand became a member of the ITU on 3 June 1878.

¹⁷ Based on considerations such as co-channel and adjacent channel interference probability, propagation, receiver characteristics etc.

¹⁸ Also known as apparatus licences or radio apparatus licences.

¹⁹ Where broadcasting was concerned a warrant from the Broadcasting Tribunal was necessary before the NZPO would grant a licence.

²⁰ Later to become the Ministry of Commerce.

²¹ The Radio Regulations 1987; 1987/412, 17 December 1987.

²² The prerequisite for a warrant, where broadcasting was concerned, was also retained.

²³ Regulation 13.