Communications Minister David Cunliffe today announced the next step towards the roll-out of wireless broadband services in New Zealand.

Releasing the consultation document on the joint spectrum auction in the 2.3GHz and 2.5GHz bands, to take place in December 2007, Mr Cunliffe said: " Faster, cheaper broadband is a high priority for the Labour-led government and is one of the key policies within our Digital Strategy.

"This consultation process on the spectrum auction design is another important component of the Telecommunications stock-take announced in May 2006.

"This spectrum is pivotal to the rapid roll-out of broadband wireless services. It will bring more choice and better access for those seeking to join the digital world, and will be of particular interest to rural New Zealanders.

"The decision to auction jointly radio spectrum in the two bands in December 2007 will ensure there is ample spectrum available to facilitate competitive roll-out of new services.

"There is a preference for strict acquisition limits, and use-it-or-lose it provisions, to prevent spectrum hoarding and enhance the development of competitive conditions.

"The proposals outlined in the discussion document will also provide ample spectrum for nationwide and regional use,'' Mr Cunliffe said.

"The discussion document proposes three 'managed spectrum parks' totalling 75 MHz. This is a new concept designed to provide for local and regional use on a shared basis.

"The proposed arrangements will give successful bidders the opportunity to plan the implementation of emerging WiMAX and other technologies with certainty.

"I encourage all people and companies who have an interest in wireless broadband access and services to read and provide their feedback on the proposals set out in the discussion document,'' Mr Cunliffe said.

• The consultation document is available on the Ministry of Economic Development's radio spectrum website, here.
• Interested parties have until 14 September 2007 to comment on it. Comments should be made to radiospectrum@med.govt.nz

Background

On 10 April 2007, the Ministry of Economic Development released a discussion paper for industry feedback on options for the design of a 2.3 GHz spectrum auction in late May 2007.

After careful consideration of stakeholders’ submissions the government decided to postpone the auction of 2.3 GHz spectrum, and bring forward the auction of 2.5 GHz spectrum, to enable a joint auction in December 2007.

The World Radio Conference is being held in October-November which is expected to provide greater certainty of technology trends for WiMAX and wireless broadband technologies, which will help inform bidders.

The combined auction of spectrum, in both frequency bands will make significantly more spectrum available for broadband wireless and other uses.

• There are three design options for nationwide rights, ranging from six fixed blocks of spectrum suitable for a single technology type, through to a more complex arrangement allowing the market to determine both the mix ant extent of the types of technology that will be deployed.
• Parties will be required to implement services by a certain date, or face both the loss of spectrum and financial consequences. Proposed options for the implementation date are 2012, 2014, or 2016.
• Parties will be limited as to the amount of spectrum they can acquire, until a date which is currently proposed to be one year prior to the implementation date. Comments are sought on both these issues.
• Three sub-bands, termed Managed Spectrum Parks, are also proposed to allow shared use in local areas by parties not wishing to operate nationwide services. An outline of the management regime is given, although there will be further consultation on the detailed arrangements.

The 2.5 GHz band is presently in use for video linking from sports events and the like. A transition plan is proposed which makes arrangements for the present different types of use and comments on this are also sought.