Radio Spectrum
Five Year Outlook
2012-2016
Consultation Draft
ISBN: 978-0-478-38243-3
MED1383953
Disclaimer
The opinions contained in this document are those of the Ministry of Business, Innovation
and Employment and do not reflect official government policy. Readers are advised to seek
specific legal advice from a qualified professional person before undertaking any action in
reliance on the contents of this publication. The contents of this discussion paper must not
be construed as legal advice. The Ministry does not accept any responsibility or liability
whatsoever whether in contract, tort, equity or otherwise for any action taken as a result of
reading, or reliance placed on the Ministry because of having read, any part, or all, of the
information in this discussion paper or for any error, inadequacy, deficiency, flaw in or
omission from the discussion paper.
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Table of contents
Foreword ................................................................................................. 3
Invitation for submissions ........................................................................ 4
Introduction ............................................................................................. 5
Section A – Radio spectrum in New Zealand .......................................... 6
1.
2.
3.
4.
New Zealand’s spectrum management objectives ................................................. 6
Spectrum management framework ........................................................................ 8
Stakeholder engagement ......................................................................................11
International treaty involvement ............................................................................11
Section B – Drivers for change.............................................................. 12
1.
2.
3.
4.
5.
6.
More efficient and effective provision of public services ........................................12
International harmonisation ...................................................................................15
Established technology trends ..............................................................................16
Emerging technologies..........................................................................................17
Industry specific trends .........................................................................................21
Compliance ...........................................................................................................28
Section C – Key spectrum projects ....................................................... 29
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Legislative framework amendments ......................................................................29
Management framework .......................................................................................30
Digital switchover and the digital dividend .............................................................31
International participation ......................................................................................32
Review of VHF Band III .........................................................................................34
Crown asset management functions .....................................................................34
Fixed services review ............................................................................................35
Spectrum for emergency services .........................................................................35
Documentation review...........................................................................................36
Transactional service delivery ...............................................................................36
Fees review ..........................................................................................................37
Compliance projects .............................................................................................37
Section D – Summary of Spectrum Developments................................ 39
Broadcasting ...................................................................................................................39
Radiocommunications.....................................................................................................40
Radiodetermination .........................................................................................................42
Science Services ............................................................................................................43
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Foreword
Hon Amy Adams – Minister for Communications and
Information Technology
The government’s goal is to grow the New Zealand economy to deliver greater
prosperity, security and opportunities for all New Zealanders. As New Zealand’s
prosperity depends in large part on us being well connected, with access to the latest
technologies, an effective radio spectrum management regime is increasingly critical.
While the importance of the radio spectrum is not always appreciated, ensuring it is
used effectively and efficiently has a sizeable benefit to New Zealand. For New
Zealanders to get better data access on the go, better cellular coverage in rural
areas, and access to their favourite television and radio channels, we need to
manage the radio spectrum in a way that is forward looking and able to accommodate
change. The development of the Radio Spectrum Five Year Outlook will help
develop a shared vision of how to achieve this.
I am focused on ensuring that New Zealand has a flexible, modern spectrum
management system that can deal with the challenges of ever changing technology.
In the past New Zealand has led the world in pioneering new approaches to spectrum
management. The Spectrum Outlook considers a number of ways that we can
update and refine our framework to make it more responsive and effective.
Stakeholder feedback will be important in striking a balance between providing
certainty to existing radio spectrum users and providing the flexibility to encourage
new uses.
Much of the recent debate about how we manage the radio spectrum has centred on
the switch-over to digital television and the subsequent allocation of the digital
dividend. These areas are a key focus for the government and play a major part in
our response to the changing face of radiocommunications. The Spectrum Outlook
now provides an opportunity to consider the future of spectrum management in broad
terms. I urge you to read the document and submit your perspective on trends in the
sector and the Ministry’s radio spectrum work programme.
I am confident that with stakeholder input the Spectrum Outlook can provide a useful
blueprint for radio spectrum management over the next five years. By developing a
shared strategy we can promote the growth of this innovative and competitive sector
and make a significant contribution to the economic prosperity of all New Zealanders.
Hon Amy Adams
Minister for Communications and Information Technology
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Invitation for submissions
Interested parties are invited to comment on the content of this document and on any
related issues. Written submissions should be sent no later than 20 September 2012
to:
Radio Spectrum 5-Year Outlook
Radio Spectrum Policy and Planning
Ministry of Business, Innovation and Employment
PO Box 1473
WELLINGTON 6140
or by email to:
[email protected] (preferred option)
Any party wishing to discuss the proposals with officials should email, in the first
instance, [email protected]
Posting and release of submissions
The Ministry of Business, Innovation and Employment (the Ministry) intends to publish
all submissions on its website at http://www.rsm.govt.nz. The Ministry will consider
you to have consented to the publication of your submission, unless clearly specified
otherwise in your submission.
Please advise the Ministry of any objection to the release of any information
contained in a submission to this document, and in particular, which parts should be
withheld, together with the reasons for withholding them. The Ministry will take into
account all such objections when responding to requests for information on
submissions to this document under the Official Information Act 1982.
Privacy Act 1993
The Privacy Act 1993 establishes certain principles with respect to the collection, use
and disclosure by various agencies including the Ministry, of information relating to
individuals and access by individuals to information relating to them held by such
agencies. Any personal information you supply to the Ministry in the course of
making a submission will be used by the Ministry in conjunction with considerations of
matters covered by this document only. Please clearly indicate in your submission if
you do not wish your name to be included in any summary the Ministry may prepare
for public release on submissions received.
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Introduction
New Zealand aspires to be world class in its use of information and communications
technologies. Increasingly, these technologies utilise wireless functionality, requiring
an allocation of radio spectrum. This drives the need for active radio spectrum
management.
Our preference is to allocate spectrum for new uses in advance of the technology
becoming available so that companies have plenty of time for planning, capital
expenditure and implementation. However, existing users in a band cannot be
moved quickly without incurring costs. This means that the need to allow incumbents
a reasonable time to move must be balanced against the costs of delaying the
introduction of a new technology. Planning and trade-offs are necessary.
There is some evidence that the pace of technology change in this area is increasing,
with decreasing cycle time for new technology and a corresponding need for
increased agility. This increases the requirement for good planning and sound
allocation frameworks.
This report forms part of the planning process, helping the Ministry to anticipate
trends and to manage its work accordingly. The report also provides external
stakeholders with increased certainty about the Ministry’s future plans for allocation
and management of radio spectrum in New Zealand.
The Outlook has three main sections:
•
Section A provides a brief overview of the current spectrum management
objectives and framework in New Zealand. This material is likely to be familiar to
most of our intended readers but is included for context.
•
Section B examines the changes, challenges and opportunities that the Ministry
will face in managing the radio spectrum over the next five years (2012 to 2016).
We expect this period to see profound technological change, especially in the
provision of mobile services. By identifying these drivers for change and carefully
considering their impact on spectrum use, the Ministry aims to provide the
government with well-informed advice regarding spectrum management.
•
Section C describes the spectrum management projects planned in order to
address the challenges identified. While touching on the Ministry’s routine
operations, the Outlook focuses on major projects and potential changes to policy.
The Outlook is a high level overview, intended to identify further long term concerns
and projects through input from stakeholders, and it will be reviewed on a regular
basis to maintain currency.
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Section A – Radio spectrum in New Zealand
1. New Zealand’s spectrum management objectives
The radio spectrum is a finite resource that the Crown manages on behalf of all New
Zealanders. Radiocommunications are a critical part of New Zealand’s infrastructure
and enable a wide range of economically essential applications.
Responsibility for radio spectrum management sits with the Ministry. Management
functions include licensing, maintaining the register of radio frequencies, undertaking
compliance activities, managing Crown spectrum, spectrum planning, and
representing New Zealand’s international radio spectrum interests.
The Ministry is responsible for efficiently and effectively
managing the radio spectrum, including allocating rights for
the use of the spectrum, and enforcing compliance.
These functions are split between the Radio Spectrum Management Group (RSM)
and the Radio Spectrum Policy and Planning Group (RSPP). In addition, RSPP is
responsible for providing policy advice to the government on spectrum issues, and
administering the allocation of any spectrum the government decides to make
available as tradable property rights.
The key operational objectives of spectrum management in New Zealand are to
enable productive radio applications and minimise harmful interference between
uses. The current approach to spectrum management emphasises:
•
the flexible use of allocation methods and licence types
•
the use of tradable spectrum rights for high-demand spectrum allocations
•
the certification of licences by private sector engineers
•
transparent and responsive engagement – particularly through increasing
online functionality.
Efficient infrastructure and policy facilitation
The Ministry’s role in allocating spectrum is to enable and facilitate business use, and
to support the public policy outcomes sought by government. In recent years, efforts
to achieve technological neutrality in spectrum allocations have aided in attaining the
most economic use of the spectrum. For this reason, transitions to new technologies
are often less difficult in New Zealand than in many other countries.
Given New Zealand’s small size and the fact that radio tends to be a specialised input
for other business outputs, there is also a responsibility to foster capability in the
sector through engineering practices.
This will continue to occur through
collaboration with industry, academic, and regulators – particularly for international
engagement.
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The government’s immediate role in encouraging radio’s contribution to economic
growth is through allocating radio spectrum bands to particular uses (e.g. mobile,
fixed, broadcasting), including influencing the global allocation process that occurs
through the International Telecommunication Union, to ensure New Zealand benefits
from the availability of radio equipment.
The radio spectrum is a valuable input into achieving a number of government policy
objectives, such as enabling the cultural sector to contribute through non-commercial
and te reo Māori broadcasting. Some spectrum is also reserved for a number of
government services, such as for communications systems used by defence and the
emergency services.
Radio-based communications are also an essential part of the Rural Broadband
Initiative, a government-subsidised project designed to significantly improve
broadband coverage in rural areas. Food and agri-business products contribute twothirds of New Zealand's export earnings, so the benefits of improving rural broadband
are expected to be significant.
Making plans and ease of doing business
Radio is an increasingly important enabler for new commercial opportunities.
Spectrum management should not unnecessarily hinder supply, and should help
meet consumer demand for convenient and ubiquitous wireless applications.
Digital rechanneling in recent years has allowed New Zealand industry to deliver
greater transmission capabilities, making more capacity available for other uses, and
improving services for the broader economy. While the benefits of replacing outdated equipment can be a strong reason to change, a regulatory environment that
increases incentives for licensees to improve efficiency on their own can also be
effective where spectrum is scarce.
Technology
Most future spectrum use in New Zealand will be dictated by international usage.
The risk from adopting uses too early is that the New Zealand economy is
constrained by a premature choice of technology path. Effective international
engagement and a cautious and flexible approach to spectrum allocation that tracks
potential scenarios is therefore the best way for a “fast technology follower” approach
to provide for economic growth.
The “fast-follower” or “early-adopter” approach to technology transfer should not
restrict potential export opportunities. For the New Zealand economy to capitalise on
global economies of scale in equipment supply, constructive collaboration with
industry groups who may have competing interests is required. The Ministry has
been active in finding suitable frequencies for technology developers to test new
products and expects to continue this approach in future.
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2. Spectrum management framework
Management of the radio spectrum is provided for by the Radiocommunications Act
1989 (the Act) and the Radiocommunications Regulations 2001 (the Regulations).
The Act provides a framework for managing the radio frequency spectrum and
broadly speaking establishes two regimes – a property (management) rights
approach and an administrative radio licensing system. Both are used in New
Zealand and are discussed further below.
The Regulations give effect to the Act’s provisions, including specifying requirements
in relation to radio licences, requirements for radio equipment suppliers and operators
of radio transmitters, prescription of standards, compliance measures, offences and
fees.
The importance of radio spectrum allocation is expected to increase in coming years,
due to the increasing pace of innovation. Established technologies are evolving and
converging – most significantly within information technology (IT), local area
networking and mobile broadband. Government will need to ensure that spectrum is
allocated with future demands in mind, and that appropriate licensing regimes are
used.
A further tension in relation to spectrum assignment arises in assessing the value of
spectrum used for different purposes, in particular, commercial versus noncommercial use. In administering the spectrum on behalf of New Zealanders, the
government is required to make judgements regarding the benefits to New Zealand of
assigning spectrum for a non-commercial use.
2.1.
Management rights regime
The management rights regime treats spectrum as a tradable property, enabling it to
be assigned to those who value it most. Few countries have gone as far as New
Zealand in promoting a rights model combined with technology neutrality. This is in
contrast to centrally-planned models of spectrum management where technology
changes are often delayed until the government completes the replanning of
spectrum bands.
A spectrum management right is a private property right to manage and use a defined
band of the radio spectrum over the whole of New Zealand for a period of up to
20 years. With this right comes considerable technical flexibility.
Spectrum licences are granted by the owner of a management right and are typically:
•
assigned for a defined period of time
•
not limited to specific equipment or transmission methods.
There are three types of spectrum licence. One type provides the right to transmit
radio waves on a specified frequency. The second type provides the right to have no
harmful interference on a specified frequency. The third and most common type is a
licence to both transmit and to have no interference.
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2.1.1. Allocation methodologies
The method by which the government chooses to allocate spectrum under the
management rights regime can have a significant impact on whether that spectrum is
efficiently utilised. Depending on the desired usage of the spectrum, government can
choose either an administrative or a competitive allocation.
While competitive allocation should theoretically maximise the economic efficiency of
its use, administrative allocations are sometimes required to meet other government
objectives. An example of this is non-commercial broadcasting. These spectrum
licences are allocated by the Ministry for Culture and Heritage, which assesses the
applicants’ ability to deliver on the objectives.
In the past government has employed a number of methods when allocating
spectrum competitively. These have included first- and second-price tenders, a
combinatorial tender, open outcry auctions, and simultaneous ascending auctions.
Each method has its advantages and disadvantages. The simultaneous ascending
auction has proved successful in the most recent auctions and might be considered
the default option.
However, the Ministry always considers the particular
characteristics of the band(s) to be allocated when making recommendations to
government on allocation methodology.
Developments in auction design theory, facilitated by the development of auction
software, may allow the Ministry to implement new methods, such as package
bidding and combinatorial clock auctions.
2.1.2. Crown-managed spectrum
The Crown has chosen to create and retain management rights in a number of
bands. This enables the Crown to issue specific spectrum licences, while ensuring
their efficient use through competitive allocation, or alternatively, to undertake
administrative allocation to non-commercial users.
This arrangement has been used most frequently for broadcasting. All television and
radio broadcasting licences are located in Crown-managed spectrum, and
commercial licences were initially allocated through competitive processes.
The Crown has also issued licences for non-commercial radio broadcasting and
broadcasting to promote te reo Māori. These are assigned by the Ministry for Culture
and Heritage and Te Puni Kōkiri respectively.
2.2.
Radio licensing regime
Where the facility to trade spectrum rights is not seen as appropriate, and the
demand for spectrum does not exceed supply, government directly allocates licences
under the radio licensing regime. This is referred to as “apparatus licensing” by some
administrations. Examples of the use of spectrum under this licensing regime
include:
•
commercial applications such as land mobile radio and fixed link services
•
safety services (e.g. radio beacons and radar)
•
services operated by the Crown (e.g. defence and security)
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•
services that are subject to international accords (e.g. maritime and
aviation)
•
scientific applications (e.g. meteorology)
•
other non-commercial purposes (e.g. amateur radio, personal radio
services).
Licences issued under this regime are not tradable and have limited tenure compared
to management rights. The assignment of licences is administratively based and
operates on a first-come, first-served basis. Licence holders pay an annual fee which
is set to recover costs, but do not pay any “resource charge”.
Because resource pricing or market mechanisms (e.g. auctions) are not used in
spectrum assignment under the radio licensing regime, there is little incentive to use
spectrum efficiently. However, this only has a significant economic impact if
spectrum is scarce.
The radio licensing regime is meeting the objectives described above, largely due to
New Zealand’s small size and a lack of demand, as well as proactive technical
planning and management of licensing. The Ministry has the ability, under the
Regulations, to control anti-competitive hoarding behaviour by cancelling licences if
they are unused.
2.3.
General user licenses
General user licences (GULs) permit the use of specified frequency bands by devices
that meet certain restrictions (relating to electromagnetic compatibility and power
outputs), with no requirement for individual licensing or fee payments.
Devices operate under GULs on the basis that they must not cause harmful
interference to other licensed services, and are not protected from interference
themselves. GULs can be managed either under the management rights regime
(General User Spectrum Licence) or the radio licensing regime (General User Radio
Licence).
2.4.
Managed spectrum parks
Managed spectrum parks (MSPs) cater for a situation in which a nationwide spectrum
right is not required, but likewise a general user licence would be too open as
services require some coordination or sharing. In theory, users negotiate with each
other to operate licences on an individual but shared basis, thereby efficiently
allocating spectrum that would otherwise have been allocated on an exclusive basis.
New Zealand has introduced an MSP in Crown-managed spectrum in the 2.5 GHz
band in order to encourage the introduction of localised/regional telecommunications
services.
In practice, the allocations have been somewhat contentious and
applicants have found the length of the process and the possibility of challenges to be
frustrating. MSPs are an innovation for New Zealand and the Ministry is closely
monitoring how they develop.
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3. Stakeholder engagement
The radio spectrum website, www.rsm.govt.nz, provides comprehensive information
about spectrum management in New Zealand, details of current consultation
processes, records of past competitive spectrum allocations, engineering rules and
consumer information. News items are posted to the website and a monthly “Radio
Spectrum Business Update” newsletter is emailed to subscribers.
Public consultation has been the most frequently used means of engaging with
stakeholders to obtain their views on spectrum policy and planning issues and
proposals. Notification of an open consultation is provided to subscribers of the
“Business Update” e-newsletter. The Ministry also often holds workshops to
complement public consultations, especially if the consultations involve complex
issues.
4. International treaty involvement
New Zealand’s international engagement in relation to spectrum is shaped by its
treaty agreements. The International Telecommunication Union (ITU) is the United
Nations’ specialised agency for information and communication technologies.
Through the ITU, parties work towards consensus on a wide range of issues affecting
the future direction of the ICT industry.
The ITU coordinates the international use of spectrum through the International Radio
Regulations (IRR), a treaty document that designates frequency ranges for the
operation of standard types of radio service. The IRR stipulate the framework of
frequencies around which radio system designers and manufacturers develop
transmitters, receivers and other radio-based products.
The IRR are reviewed every three to four years at World Radiocommunication
Conferences, providing an opportunity for countries to influence the international
allocation of the spectrum. Conversely, decisions taken in this forum affect the
allocation of spectrum in New Zealand.
Indeed, references within the
Radiocommunications Act 1989 embed the IRR within New Zealand law.
The Asia-Pacific Telecommunity (APT) has grown in importance to New Zealand and
other countries in the Asia Pacific. With 38 member countries and more than
50 percent of the world’s population, this regional organisation has significant
influence in promoting regional harmonisation and representing regional views at
meetings of the ITU.
The Ministry facilitates New Zealand’s participation in the ITU and APT with input
from other ministries and departments, organisations operating radiocommunication
and telecommunications services (including broadcasting), spectrum licensees, and
other interested parties. These discussions take place within the forum of the New
Zealand Radio Sector. The New Zealand Radio Sector meets at regular intervals.
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Section B – Drivers for change
The focus of this chapter is on upcoming developments that could require a change in
legislation, operational policies, or priorities in order to more efficiently manage the
radio spectrum.
The adoption of global standards for equipment and spectrum utilisation will allow
New Zealand to meet its goal of being a “fast follower” in technological
implementation. In order to facilitate this, the Ministry must take a proactive approach
in identifying drivers for change in spectrum utilisation.
Over the next five years it is anticipated that demand in certain bands of the radio
spectrum will increase significantly. The development of broadband mobile devices is
forecast to cause a dramatic increase in mobile data usage, and in turn, in spectrum
demand from network operators. There is little doubt that international technological
developments will drive most of this future growth.
As new uses for wireless technologies expand, careful and well considered allocation
of the spectrum will become increasingly important. Like all spectrum regulators, the
Ministry will need to weigh the demands of the growing mobile broadband market
against the needs of existing users.
Drivers for change in the management of spectrum may also come from other areas.
In particular, the expectations of customers, both spectrum stakeholders and end
users, are continually evolving. The Ministry will need to consider what changes are
necessary to ensure that it is providing services in the most efficient and effective
manner possible.
1. More efficient and effective provision of public
services
Over the next five years the Ministry’s priorities in its management of the radio
spectrum will continue to be driven by the need to foster economic development and
prosperity for all New Zealanders. In order to meet this objective the Ministry will
need to develop its operational policies, engagement strategies and allocation
methodologies to ensure that it is operating in the most effective and efficient manner
possible.
1.1.
Operations
Over the past decade the Ministry has focused on minimising the administration and
business costs of facilitating and maintaining access to the radio spectrum. To this
end we have increased the use of online services, accredited external persons, and
implemented a deterrent-based compliance system. These actions have allowed us
to keep licence fees at low levels, while retaining an effective spectrum management
framework.
The Ministry has identified the further online provision of services as a way of
improving operational efficiency, while improving the speed and simplicity of
processes for clients. The most common processes can now be performed online,
while the register of radio frequencies online database (“SMART”) provides easy
access to licence details. The Ministry is committed to further improving and
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maintaining its online information and spectrum registry services for clients, approved
persons, and other users of the radio spectrum.
By encouraging the use of approved radio engineers (AREs), approved radio
certifiers (ARCs) and approved radio examiners (ARXs), the Ministry has been able
to improve the efficiency of its operational functions and focus on its registry and
compliance functions. The need to maximise operational efficiency will drive further
changes in this area over the next five years.
The Ministry’s compliance team seeks to undertake the least amount of auditing and
enforcement intervention necessary to achieve its objectives, while ensuring that its
investigations and decisions are proportionate, consistent, transparent and
accountable.
Supplier and industry compliance with transmitter licensing requirements, radio
equipment standards and electrical product electromagnetic compatibility (EMC)
standards reduces the potential for radio interference to occur. Inevitably, however,
incidents arise that disrupt radiocommunications. Targeting equipment supplier
compliance and radio interference complaints allows the Ministry to minimise
interference while controlling operational costs. In addition, the online trading of
transmitters will require continued active monitoring to both ensure suppliers
understand the compliance risks and to minimise the distribution of non-compliant
equipment.
1.2.
Allocation
Over the next five years the efficient and effective allocation of spectrum will be an
increasingly important aspect of ensuring that the radio spectrum provides the
maximum benefit to New Zealand.
In 2009 the Ministry conducted a review of the radio licensing regime as a method of
allocating spectrum. The review considered whether further spectrum should be
converted to management rights, or whether the introduction of administrative
incentive pricing was appropriate. While overall it concluded that the radio licensing
regime was working adequately, it identified room for improvement in New Zealand’s
spectrum allocation policy.
Regional vs national allocations
The current management rights framework is based on national spectrum allocations.
For national network operators this is preferable as it is simple and flexible. However,
for some regional operators national management rights are unnecessary and
unaffordable. Regional management rights may be a more effective spectrum
allocation method in some situations, although they would raise a number of
interference management issues that would have to be resolved.
The Ministry has tried to accommodate regional operators through the managed
spectrum park and through spectrum licences covering individual territorial local
authorities at 3.5 GHz. We plan to consider whether there are further opportunities to
facilitate a regional approach.
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Management rights vs radio licences
As the commercial uses of the spectrum have evolved, more frequency bands have
been transferred to the management rights regime. So far, the management rights
regime has been applied to frequency bands with apparent congestion or which are
considered to be of high value due to available or potential technology and consumer
demand.
The primary benefit of management rights is the potential efficiencies in allocation
afforded by tradability and technological neutrality. By allocating spectrum to those
who value it most, market processes move decision-making from government to
those who should have the best information: market participants. As technology
changes, a secondary market could facilitate the reallocation of spectrum to more
economically efficient uses, without protracted and politically fraught governmentmandated transitions. Over the next five years we will continue to monitor and finetune performance of the management right regime.
1.3.
Competition issues
Approval by the Commerce Commission is required for any acquisition, including
spectrum, judged to have the effect of substantially lessening competition. However,
if a market is new it can be difficult to determine the effect of an acquisition on
competition. Once a market player has established a dominant position, while the
Commission can act to prevent the misuse of market power, in practice it can be
difficult to ensure effective competition. For this reason, it can be useful to apply
policies on the acquisition of spectrum to support competitive outcomes.
Since 2001, acquisition limits (caps), implementation requirements, or both, have
been applied to most allocations of spectrum suitable for cellular services. Caps on
bidding or acquisition generally restrain incumbents from damaging competition or
industry development. In this way, they are used as a complement to the Commerce
Act provisions.
The competition benefits of spectrum caps need to be weighed against their potential
to inhibit operators from offering services efficiently. Tight spectrum caps can
increase operator costs – and in turn consumer prices – by increasing the necessary
density of cell sites, while negatively impacting on the quality of service offered.
In New Zealand, implementation requirements have been imposed in a number of
allocations. These have taken the form of time-specified coverage targets for the
service that the spectrum is to be used for (e.g. 65 percent population coverage
within five years), with provision for extending the deadline for implementation. The
purpose of these requirements is to ensure that spectrum is used and does not lie
fallow. This inherently carries risks, as it is not possible to know what changes might
occur in technology or the economic environment that might make investment within
the identified timeframe uneconomic. Implementation requirements also compromise
the technological neutrality of management right allocations.
In order to implement acquisition policies, the Crown has required the potential right
holders to sign contracts setting out these rules (“deeds”) at the time of acquisition.
The Radiocommunications Act is silent on competition issues in regards to spectrum.
It may be preferable to establish legislative provisions to enable ex-ante measures,
rather than relying on contracts.
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1.4.
Engagement
In order for the provision of public services to be effective, the Ministry needs to
ensure that it is communicating successfully with both stakeholders and the general
public. The Ministry’s main focus in this regard will be improvement of its radio
spectrum website. The website should be a source of accurate, easy to understand
and up-to-date information about licensing processes, compliance, and radio
spectrum projects.
As part of making documentation easier to access and understand, the Ministry has
begun consolidating its policy documents into public information brochures (PIBs).
While this process is nearing completion, the need to ensure that this documentation
remains up-to-date and informative will drive on-going work in this area.
As discussed earlier, the Ministry’s primary method of informing stakeholders of
consultations, policy modifications and other changes is through the monthly radio
spectrum e-newsletter. While in general this has proved to be an effective method of
updating stakeholders, the Ministry will continue to consider other options for external
engagement. In particular, the use of social media will be considered as part of our
engagement strategy.
International studies have identified areas of concern with regards to the public
perception of consultation processes. These include: bias; lack of foresight;
timeliness with respect to the issue at hand; insufficient time for comment;
methodology; and lack of feedback. The Ministry would like feedback from industry
on any such concerns, as we wish to continue to undertake robust industry
consultation while maximising the value of such engagement.
2. International harmonisation
The harmonisation of New Zealand’s spectrum allocations with international markets
is fundamental to the efficient utilisation of radio spectrum. The New Zealand market
is too small for government to set domestic standards that disregard international
developments.
It is therefore important that the Ministry both supports the development of
international standards, and ensures that any future allocations are designed to allow
New Zealand to be a “fast follower” in technology. Adherence to international
standards will allow the quick development and implementation of new technologies,
and reduce equipment prices and complexity.
In particular, the adoption of international band plans for cellular networks is vital. It
allows New Zealand to take advantage of economies of scale, thereby ensuring
broad availability of equipment, such as consumer handsets, at low prices.
Harmonisation is also essential in order to allow for the international roaming of
cellular handsets.
There are also incentives to establish spectrum-related regulatory arrangements with
New Zealand's key trading partners, through the development of agreements outside
the ITU framework. Examples of these include New Zealand’s Memorandum of
Understanding with Australia and efforts on spectrum harmonisation within the AsiaPacific Telecommunity (APT). Such harmonisation arrangements are expected to
support economic growth by simplifying and minimising compliance costs for
importers and exporters.
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3. Established technology trends
3.1.
Lower cost/more sophisticated equipment
International harmonisation and the removal of trade barriers has given New Zealand
access to an enormous range of lower cost, mass-produced, radio devices. For
example, like most consumer electronics equipment, the cost of wireless access
points has fallen dramatically in recent years. At the same time, their performance
has continued to improve with the progression of 802.11 standards. These devices,
often operating in the 2.4 GHz GURL, have gone from being niche products to
common household devices in a short period of time.
While these developments are welcome they do place pressure on the use of
spectrum. Since the sheer number of wireless consumer devices makes individual
licensing unfeasible, these devices use bands where licencing is not required. As
these bands become congested the devices are becoming increasingly sophisticated
in how they manage their use of spectrum.
The capability of commercial radio equipment is also rapidly improving. For example,
fixed point-to-point linking transmitters now include features such as adaptive
modulation and multiple-input multiple-output (MIMO), dramatically improving their
spectral efficiency. Other commercial technologies, such as land mobile radio,
increasingly utilise digital modulation to provide new services and increase capacity.
3.2.
Analogue to digital transition
The switch from analogue to digital signal modulation has the potential to both
improve the quality of service provision and to reduce spectrum congestion. Amongst
the benefits of digital modulation are: increased information capacity; compatibility
with data services; enhanced security; and improved communications quality – all
while using a fraction of the spectrum required for equivalent analogue services.
However, the usefulness and economic feasibility of switching from analogue to
digital transmission is very much dependant on the nature of the industry involved.
Most industries that utilise technologies with relatively short evolutionary timeframes
have already transitioned to digital transmission for commercial reasons. For
example, mobile network operators moved to digital transmission in the early 1990s
in order to improve service quality and security, and to offer new services.
Conversely, in some industries, such as land mobile radio and fixed linking, the
installation of digital equipment will continue throughout the Outlook period, due to the
long equipment lifespan. While this transition will improve spectral efficiency and
reduce congestion in the long term, any benefits will be incremental. The Ministry will
look to ensure that our spectrum management framework facilitates this change
where technically possible.
In the case of television broadcasting, the switch to digital transmission has been
mandated by the government in order to release spectrum for other uses. This policy
has been driven by the high economic value of the released spectrum for mobile data
provision, the improved quality and services offered by digital television and the need
to harmonise our arrangements with international markets.
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While it is possible that there may be a need for other mandatory transitions to digital
in the forecast period, the Ministry has not yet identified any particular areas where
this will be necessary. Any such decisions will likely be driven by international usage,
and will only be made if considered necessary after extensive consultation.
3.3.
Changes in usage
The rapid development of technology is resulting in a “blurring” of the boundaries
between the traditional service definitions used in spectrum management.
Developments in transmission technology, infrastructure and consumer demand
mean that it is becoming increasingly difficult to distinguish between industries such
as broadcasting and mobile services.
While some services converge, their usage of the radio spectrum may also begin to
change. Those services predominantly provided using a fixed wire-line connection in
the past, such as telephony and internet services, have increasingly been provided
using spectrum. At the same time, services traditionally provided using the radio
spectrum, such as broadcasting and fixed links, are now often provided using fixed
connections or satellite.
The Ministry will need to ensure that the radio spectrum is managed in such a way
that not only accommodates changes in usage, but facilitates the transition of
spectrum to higher value uses. The exact nature of any such changes is not currently
apparent, and the Ministry acknowledges that market participants possess more
knowledge about technological developments and consumer preferences.
A spectrum management framework that allows businesses to make decisions about
their spectrum requirements will help to ensure that as technology rapidly changes,
the radio spectrum produces the maximum benefit to the New Zealand economy.
4. Emerging technologies
4.1.
Spectrum sharing
Smart technologies and assignment methods that improve spectrum efficiency and
allow greater sharing of spectrum are under development internationally. Dynamic
spectrum access involves gaining access to frequencies at a certain time or in a
certain geographical location on a relatively temporary basis, even where the
frequencies had already been assigned to another user (who is not using it at that
particular time or location).
While some smart radio capabilities are available now, a variety of new technologies
are expected to evolve over the next decade. Some of the key emerging
technologies are discussed in this section.
4.1.1.
Ultra-wideband technologies
Ultra-wideband (UWB) refers to wireless technologies developed to transmit large
amounts of data over very short distances, typically less than 15 metres. With
bandwidths of more than 500 MHz, the transmission capacity of UWB devices greatly
exceeds that of radio transmitters confined to frequency bands for specific services.
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UWB devices transmit at very low power levels, enabling them, in theory, to share
spectrum with traditionally-licensed services over a wide range of frequencies without
impacting those services. The Ministry has therefore been able to “underlay”
individual or general user licenses for UWB transmissions across a number of
frequency bands without having to make any changes to the existing regulatory
framework.
A potential widespread application of UWB technologies in the future is for highspeed wireless networking in the workplace or at home, for example the distribution
of high definition TV within the home. Other potential applications include groundpenetrating radar for geological surveys and search and rescue, wall-penetrating
imaging systems used in construction, vehicular radar for collision avoidance, medical
imaging systems, and hand-held communication and measurement systems.
4.1.2.
Software-defined radio
Software-defined radio (SDR) technology utilises software direction to alter the
operating parameters of a radiocommunications device, such as the frequency range
or maximum output power, without making changes to the hardware components.
First developed by the military, SDR technology has now been adopted by a number
of industries, including for cellular base station infrastructure. SDR use is likely to
continue to grow, with new standards being introduced to offer a smooth migration
from 3G to 4G cellular technologies.
Due to the inherent ability of SDR devices to reconfigure their technical parameters,
they raise concerns regarding their compliance with current technical and regulatory
standards. While the ability to reconfigure does not itself constitute a breach of
standards, each configuration would need to conform to an appropriate standard.
The ability of developers to market software separately to the hardware may cause
further practical enforcement problems. With software able to be easily downloaded
from the internet, the Ministry intends to monitor this area closely from a compliance
perspective.
4.1.3.
Cognitive radio
Although the definition of cognitive radio is still being developed, it can be described
as a radio device or system that senses and is aware of its operational environment
and can dynamically and autonomously adjust its operating parameters accordingly
to make use of available spectrum and radio technology.
At one extreme, a “full” cognitive radio is assumed to be a fully reconfigurable radio
device that can “cognitively” adapt itself to both users’ needs and its local
environment. An example could be a mobile handset that may use cognitive
reasoning to automatically reconfigure itself from a cellular radio to a land mobile
trunked dispatch radio, or automatically power down when in a sensitive environment
(such as a hospital, cinema or airport).
Although cognitive radio technology in its full form holds much promise in maximising
spectral efficiency, facilitation of the technology may require a radical departure from
existing methods of spectrum regulation. Challenges also exist from both a technical
and a regulatory standpoint and these have to be understood before regulatory
actions are considered for cognitive radio.
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While the technology is unlikely to develop to this extent within the next five years,
researchers are of the view that in this period we may see achievable forms of
intelligent, reconfigurable cognitive radios. The most promising applications for
cognitive radio involve the use of a “geolocation” database to determine which
channels they can use at their current location. This technology will need to advance
to the stage when it can achieve an acceptably low probability of harmful interference
to licensed services.
The ITU Radio Sector has considered enhancements to the international spectrum
regulatory framework in light of new technologies such as cognitive radio. A 2012
World Radio Conference (WRC) resolution encouraged member states to undertake
further studies regarding the use of cognitive radio technology.
4.1.4.
Mesh networks
In a mesh network, each receiver, called a node, also acts as a relay transmitter for
other neighbouring nodes and the network does not rely on a powerful centrally
located transmitter. Even more notable is the fact that the capacity of the network
increases in proportion to the number of users, as each node plays a similar role to a
server on the internet.
Mesh networks have the potential to bring several advantages to wireless
communications services, such as:
•
the formation of a new type of network where users exchange information
without the need for network infrastructure.
•
extended coverage of cellular and other networks by allowing terminals on
the edge of the coverage zone to relay signals.
•
the ability to quickly deploy an ad-hoc network. This is useful to the military
and to disaster recovery teams who would desire this capability for fast
deployment and flexibility in situations with little fixed infrastructure.
Mesh networks are already being deployed in New Zealand. We will continue to
monitor their usage.
4.2.
Other technological developments
4.2.1.
Short range devices
Short-range devices (SRDs) are often known in other countries as “licence exempt
devices” or “low interference potential devices”. Examples of SRDs include radio
microphones, RF identification systems and mesh radio. SRDs in New Zealand are
licensed under a general user licence.
SRDs provide low-cost communications services in a wide range of applications, and
usage has grown rapidly in recent years. International standardisation, the use of
new technologies, and rapid, low-cost deployment are opening up innovative new
uses for the SRD radio spectrum, which could be expected to provide economic
benefits for New Zealand.
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The Ministry therefore considers that periodic review of short range device allocations
is important, with a view to harmonising the New Zealand allocations with major
markets as much as practicable. The US and Europe in particular have the ability to
drive the development of new technology. Harmonisation with Australia is also
important due to common equipment distribution channels for the New Zealand
market.
4.2.2.
Wireless networking
Wireless networking, both in the popular home and in the workplace, has become
increasingly over the past five years. By reducing cost and simplifying the setup of
networking infrastructure, wireless networking can offer significant efficiencies for the
New Zealand economy.
Currently the majority of wireless networking systems operate in the 2.4 GHz general
user licensed band – notably Wi-Fi devices using the 802.11 standard. As this band
becomes increasingly crowded, we can expect wireless networking to increasingly
utilise other bands. There is also an expectation that UWB technology will be utilised
for wireless networking.
The Ministry will carefully monitor any international changes in the frequency
arrangements for these devices.
4.2.3.
Navigation and traffic systems
As both portable and factory-fitted Global Positioning Systems (GPS) become
progressively more widespread, there is an expectation that these devices will begin
to incorporate an increasing range of traffic functions.
Termed “intelligent
transportation systems” (ITS), these systems could encompass both in-vehicle and
infrastructure-based radiocommunication technologies, and have the potential to
improve traffic safety, while reducing transportation times and fuel consumption, with
significant social, environmental and economic benefits.
Working examples include sensors installed on Japanese highways to notify
motorists of upcoming, real-time traffic risks, and electronic toll collection enabled by
radio frequency identification tags. Vehicular radar utilising UWB technology is
already present in some luxury model cars in New Zealand. Development is
underway of more sophisticated systems capable of intersection management,
collision warning, traffic signal violation warnings and pedestrian safety functions.
Both international harmonisation and collaboration with industry will be required to
licence these devices in a way that will both facilitate their deployment and protect
existing licensed services from interference.
4.2.4.
Electromagnetic near field devices
Near-field communications and charging systems reliant on short-range
electromagnetic fields have begun to be utilised by increasing numbers of consumer
devices. This technology allows for functions as varied as the wireless charging of
mobile phones and short range data transfer, through to induction cook tops and
high-powered vehicle charging systems using tens of kilowatts.
The Ministry will continue to examine these technologies to ensure that frequencies
and power outputs are not likely to cause problems to communications systems.
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5. Industry specific trends
5.1.
Mobile broadband
Smartphones, such as the iPhone and Android-based devices, have revolutionised
the way that people access information, network and communicate. As these devices
have allowed easy and convenient access to mobile internet browsers and various
connected “apps”, mobile data has become an essential service to an increasing
number of consumers. Globally smartphones only comprised 12 percent of mobile
phones in use in 2011, yet they represented over 82 percent of mobile data traffic. 1
With a dramatic increase in the number of smartphones expected in the forecast
period, we can expect the demand for fast, reliable and affordable mobile data access
to increase enormously. A leading industry study found that global mobile data
consumption increased 2.3-fold in 2011, and forecast a further 18-fold increase for
the period to 2016. 2 These international figures seem to be consistent with the
growth of data use in New Zealand. The Commerce Commission has found that total
mobile data consumption in New Zealand nearly doubled from the 2009/10 to the
2010/11 financial year. 3
The launch of the Apple iPad in April 2010 established tablet computers as an
important – and mobile data hungry – market segment. This market continues to
rapidly expand and diversify with the release of numerous Android tablets, and will
later this year be boosted by the launch of the tablet friendly Windows 8. While the
novelty of tablet computers makes their ultimate effect on mobile data demand
difficult to gauge, as tablets are more mobile in nature and often incorporate mobile
data connections, we expect their expansion to have a multiplier effect on mobile data
demand.
The effect of increasing sales of mobile devices will be magnified by the increasing
use of high bandwidth applications. As mobile broadband speeds improve, users are
increasingly streaming high quality media, especially video, on their mobile devices.
Cisco estimates that video content will account for approximately 70 percent of all
mobile data traffic by 2016. 4
Social networking, which provides much of the motivation for consumers to ensure
they remain connected anywhere, also demands increasingly high data volumes.
The social networking site Facebook reports that more than 425 million users access
its service through mobile devices, an increase of 325 million when compared to
January 2010. 5 In August 2011 Vodafone New Zealand reported that Facebook
accounted for around half of mobile data traffic on its network. 6
1
Cisco, The 2011-2016 Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update, 2012, p 2,
http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdf
2
Ibid. p 3
3
New Zealand Commerce Commission, Annual Telecommunications Monitoring Report 2011, 2012,
http://www.comcom.govt.nz/telecommunications-market-reports, pp 33-34
4
Cisco, p 3
5
http://newsroom.fb.com/content/default.aspx?NewsAreaId=22
6
http://www.nbr.co.nz/article/vodafone-details-smartphone-use-sales-ck-98287
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The shift in consumer behaviour is already impacting on the business models of
telecommunications providers. As consumers substitute their use of voice and text
services for mobile data, operators will face increasing pressures on their profitability.
While network and other operating costs are forecast to continue to increase, average
revenue per user (ARPU) is expected to remain relatively flat. 7 These changes will
provide network operators with a powerful incentive to adopt new technologies that
can offer not only faster speeds for consumers, but also a lower cost structure for
operators.
Part of the growth in data usage is expected to result from machine-to-machine
communications. The use of mobile broadband to help facilitate services such as
mobile health, energy resource management, and public safety has the potential to
exponentially increase the numbers of wirelessly networked devices. The potential
uses of these devices present an enormous opportunity for New Zealand. Ensuring
that these opportunities are not constrained by any sort of spectrum “bottleneck” will
therefore be essential.
Mobile broadband technology
As demand begins to transition from voice services towards mobile data, next
generation mobile technologies offer the potential to both significantly improve the
quality of mobile data services and provide mobile network operators with a
sustainable cost structure for data. While the Ministry aims to be technologically
neutral, it is important that we understand both the economic and spectral
implications of these technologies.
Long Term Evolution (LTE), described as either fourth generation (4G) or “3.9G”
mobile technology, has been developed by the 3rd Generation Partnership Project
(3GPP), a partnership between telecommunications standards bodies. LTE is
expected to offer speeds in the order of ten times faster than existing 3G services,
with ”peak” speeds of up to 320 Mbps (depending on equipment and antenna) in ideal
situations.
The spectral efficiency of LTE significantly reduces the cost per megabyte of mobile
data traffic to network operators. This will allow operators to provide for the
increasing data demands of consumers, while maintaining a viable commercial
model. We expect these commercial realities to also drive LTE implementation.
LTE services have already been deployed in a number of markets, including parts of
North America, Europe and Asia. Some operators have already committed to offering
the next release of the technology, LTE Advanced, which promises further enhanced
peak data rates of up to 1 Gbps for low mobility applications. A potentially significant
feature of LTE Advanced is its ability to aggregate carriers across bands, which may
moderate spectrum demand by increasing the utilisation of network operators’
existing spectrum.
WiMAX is an evolving technology based on the IEEE 802.16 standard. It is similar to
Wi-Fi but claims to offer considerable benefits in terms of distance covered, speed
and mobility. While overseas market developments suggest that the ultimate role of
WiMAX in the cellular market is doubtful, we expect it to continue to play a role in
supporting long-range fixed-wireless connectivity.
7
Commerce Commission, http://www.comcom.govt.nz/telecommunications-market-reports, p 33
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In New Zealand, there are number of local and regional WiMAX networks operating in
the 3.5 GHz band as well as within the 2.5 GHz managed spectrum park. Depending
on the development of the technology, it is possible that further deployments in the
2.3 GHz and 2.5 GHz bands could occur.
Like all mobile technologies, LTE and WiMAX require separated channels on which to
send (uplink) and receive (downlink) information. This can be done in two ways.
Frequency Division Duplex (FDD) uses a pair of spectrum bands, one for uplink and
one for downlink, separated by a frequency gap. Time Division Duplex (TDD)
accommodates both uplink and downlink within one frequency band, with the up and
down signals separated in time.
Traditionally, network operators have used FDD technology because of its better
facilitation of voice traffic, and the added complications involved in avoiding
interference among TDD networks 8. However, with data-only technologies such as
LTE and WiMAX, TDD offers further scope for asymmetrical uplink and downlink
durations. It remains unclear, though, whether mobile data transfers will remain
asymmetrical to the extent that investing in TDD-mode technology would be
warranted – it comes with additional costs, either in coordination among networks to
synchronise transmissions, or in setting aside guard bands and deploying filtering to
enable asynchronous transmissions.
Spectrum demand
As demand for mobile broadband increases, so in turn will the spectrum requirements
of mobile network operators. The ITU has projected a dramatic increase in demand
for spectrum for International Mobile Telecommunications (IMT) technology in the
period up to 2020. Depending on market conditions the ITU has estimated that
between 1280 and 1720 MHz will be required for IMT by that point.
However these estimates did not consider the impact of reallocating second
generation cellular spectrum for mobile data services, as is occurring in New Zealand,
and therefore may not be an accurate reflection of New Zealand requirements. The
Australian Communications and Media Authority (ACMA) has estimated that a total of
930 MHz of mobile broadband spectrum will be required in Australia by 2015. We
consider that this figure serves as a more useful and realistic benchmark.
New Zealand mobile network operators currently hold spectrum in the 850 MHz,
900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and 3500 MHz bands. They
do not face immediate capacity constraints, but significant growth in mobile demand
would require them to build out additional mobile radio infrastructure. Their
preference would be to utilise the 700 MHz digital dividend spectrum for much of this
growth. It seems likely that both the 1800 MHz and 2500 MHz bands will also be
used internationally for next generation mobile broadband.
In total New Zealand currently has approximately 926 MHz allocated as private
management rights in bands internationally identified for mobile broadband usage.
The potential addition of the 700 MHz spectrum would result in 1034 MHz of
spectrum being available for mobile technology.
8
Nokia Siemens Networks, Coexistence of Asynchronous TDD Networks, 2011,
http://www.nokiasiemensnetworks.com/portfolio/products/mobile-broadband/long-term-evolution-lte/td-lte
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While these preliminary figures suggest that New Zealand mobile network operators
will have sufficient spectrum in the medium term, it is worth noting that the majority of
this spectrum is above 2 GHz, and is therefore less useful from a coverage
perspective. In addition the 3.5 GHz band, while identified for IMT, has not yet been
standardised by the 3GPP. Further demand is likely to be in lower frequency bands.
The Ministry will continue to closely monitor international developments and consider
any further allocations as the need and/or opportunity arises.
Any further spectrum allocations for mobile broadband services will need to be
internationally harmonised. New Zealand has already released all but two of the IMT
bands that were identified by the World Radiocommunication Conference in 2007.
The two remaining bands are 450-470 MHz (the “450 MHz band”), identified for
narrowband IMT worldwide and 790-862 MHz (the “800 MHz band”), primarily
identified for Europe and Africa.
Internationally the 450 MHz band is primarily in use in less developed countries, due
to its excellent propagation characteristics, which enables service deployment with
minimal infrastructure. However, in New Zealand the band is heavily used for both
fixed and land mobile services. The band’s lower frequency would also require
cellular devices with larger aerials than those used by current consumer handsets.
Therefore, the Ministry is currently of the view that this band would not be suitable for
mobile services in New Zealand. Neither is the European 800 MHz band currently
suitable, as it is incompatible with both the 700 MHz Digital Dividend and the
850 MHz cellular band in use in New Zealand.
Within 3GPP there is on-going work to define the 814-849/859-894 MHz band,
referred to as Band 26 or the “upper extended 850 MHz band,” for HSPA and LTE
operations. In addition, 3GPP is also working to define the 806-824/851-869 MHz
band, referred to as Band 27 or the “lower extended 850 MHz band”. A wider
frequency allocation in these bands would allow for wider channel bandwidths and
may help to meet the consumer demand for additional mobile broadband spectrum.
We will consider the possibility of allocating these bands once they have been
standardised.
In addition, the future spectrum needs of mobile technology were a focus of the WRC12. The conference created agenda items for WRC-15 to identify further spectrum
bands for mobile services. Due to the lengthiness of this process, these bands –
likely to be utilised for 5th generation cellular services – will not come into use in the
Outlook period
5.2.
Broadcasting
The changing media landscape in New Zealand offers both challenges and
opportunities to the broadcasting industry. As access to high speed broadband
networks improves, New Zealanders are consuming increasing amounts of both
video and audio content over the internet. The ITU estimates that 54.7 percent of
New Zealand internet users either download or stream multimedia online. 9
9
International Telecommunication Union, Measuring the Information Society 2011, Geneva, 2011, p 123
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While an increase in overall media consumption has meant that audience figures for
traditional broadcast media have held up relatively well, the resulting fragmentation of
advertising revenue has had, and will continue to have, a disruptive effect in the
industry. Between 2006 and 2010 interactive advertising revenue quadrupled, while
television and radio advertising revenue declined by 4.95 percent. Over the same
period, total advertising revenue fell by 4.25 percent. 10
These changes have put pressure on existing business models, and many
broadcasters have looked to tap into the increased online advertising spending by
offering video and audio content streamed over the internet. As broadcasters
diversify their content distribution methods their spectrum needs may change.
5.2.1.
Television
As the New Zealand television broadcasting industry completes its transition to
digital-only transmission, it faces a number of challenges that may affect its use of the
radio spectrum. It remains unclear what the full impact of the expanding reach of
high speed broadband will be on the television industry. All of the major New
Zealand broadcasters have launched online video services, allowing viewers to
catch-up on already broadcast content and, in the case of SKY TV, to watch live
content.
Analysis by PricewaterhouseCoopers has predicted that “the government’s
investment in broadband infrastructure will fuel the growth of internet protocol TV
(IPTV) from 2014 to 2015”. 11 IPTV, in its various forms, utilises an internet
connection to stream either live, or on-demand services directly to a viewer’s
television. In early 2012 Quickflix, a subscription IPTV service, launched in New
Zealand and it is possible that other operators will enter the market in the near future.
Prior to the implementation of full IPTV services, broadcasters may look to overlay
existing services on frequencies on the Ultra-Fast Broadband network. This would
allow them to take advantage of the distribution network provided by the fibre
network, while maintaining a traditional broadcasting business model. Combined with
the increasing consumption of content from websites such as YouTube, these
services could moderate broadcasters’ demand for spectrum during the Outlook
period.
There appears to be little consumer demand for mobile broadcast television in New
Zealand. This is in line with international developments – in 2010 Qualcomm sold its
mobile broadcast television spectrum in the United States to AT&T, which has since
discontinued the service.
5.2.2.
Radio
Despite a drop in advertising revenue since the highs of 2007, analysts predict that
advertising revenue for commercial radio will remain relatively stable during the
Outlook period. PricewaterhouseCoopers has predicted a compound annual growth
rate for the industry of 2.8 percent from 2011 to 2015. 12
10
PricewaterhouseCoopers, Outlook: New Zealand Entertainment and Media 2011-2015, 2011, p 14
Ibid, p 23
12
Ibid, p 31
11
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As online advertising revenues have continued to rise, radio stations have begun to
diversify their platforms, investing in websites, live steaming content, and podcasting,
while utilising social networking to connect with their audiences. It is currently unclear
what impact media convergence will have on the radio broadcast industry’s use of
spectrum. Both the 88-108 MHz FM and 521-1612 kHz AM radio bands continue to
be heavily used, especially in urban areas.
There has been little demand for digital radio services from either industry or
consumers. In 2009 digital radio broadcasting began in a number of Australian cities,
using the DAB standard in VHF band III. While uptake has been reasonable, this has
been motivated by a number of factors specific to the Australian market and not
present in New Zealand, primarily the very limited number of commercial FM licences
available.
It remains unclear whether commercial digital radio services will be introduced in New
Zealand in the Outlook period. At present, Kordia’s test broadcasts remain the only
implementation of this technology in New Zealand, and receivers are not widely
available. Until the technology becomes more widely available in New Zealand,
particularly in new cars, the Ministry does not foresee significant demand for digital
radio.
In 2008, the government auctioned a number of FM licences for local commercial
broadcasting. Local commercial licensees are not permitted to have a controlling
interest in any other stations and are required to live in the broadcast area. There is
also a requirement to broadcast a considerable amount of local content in peak
listening hours. The Ministry has no current plans to issue any further such licences.
5.3.
Land mobile
Land mobile radio is a wireless communications service often used in environments
where it is desirable for a large group of users to constantly monitor communications.
It offers robust access to voice and low bandwidth data, while potentially providing
greater coverage than cellular networks. Such systems are used in New Zealand by
emergency services organisations, public works organisations, and companies with
large vehicle fleets or numerous field staff.
Over the past few years land mobile users have increasingly moved towards digital
equipment, which is more spectrally efficient and generally more robust than
analogue land mobile technologies. Digital systems also offer enhanced capabilities,
such as better voice quality, short messaging and data services, GPS tracking and
encryption.
The Ministry is currently requiring land mobile users with legacy 25 kHz analogue
land mobile equipment to transition to more efficient 12.5 kHz technology (excluding
the dedicated bands for emergency services’ use). 13 This will reduce channel
congestion, especially in densely populated areas, and allow more land mobile
services to be provided in the current bands.
13
For more information please see: http://www.rsm.govt.nz/cms/tools-and-services/customer-support/ask-aquestion/Licensing-land-mobile-transition-faqs
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In the long-term the Ministry does not see land mobile as a service with increasing
overall spectrum demand. We will need to weigh the continued importance of land
mobile technology to the New Zealand economy against increasing demands from
other industries when making future spectrum allocations. Any transitions in this
regard will be driven by changes in international use.
5.4.
Fixed services
Fixed services are radio transmissions from a fixed point to another fixed point,
licensed for the specific location of transmission. Many essential communication
networks in New Zealand use fixed services to provide backhaul where a copper or
fibre connection is uneconomical.
The Ministry is not expecting large growth in the fixed service bands and does not
anticipate a large increase in overall spectrum demand. While there is increasing
demand for higher data rates, potentially using more spectrum, new equipment is
more spectrally efficient and in a number of cases existing fixed links users are
moving to fibre connections.
5.5.
Emergency services
Emergency services organisations currently operate a number of narrowband land
mobile radio networks, mostly utilising bands that have been set aside for emergency
services’ use. The networks predominantly use analogue technology but, recognising
that this equipment is becoming increasingly out-dated and has fewer capabilities
than digital systems, the NZ Police deployed a digital trunked dispatch network
covering the Auckland, Wellington and Canterbury regions in 2010-11. This network
is being made available for use by other agencies as capacity allows.
The emergency services organisations are increasingly reliant on access to and
exchange of data. As the volume and complexity of data stored and accessed daily
increases, so will the requirements of frontline personnel. For example, Police has
identified that mobile broadband access will enable functionality such as mobile
fingerprinting, real-time intelligence delivery, and real-time CCTV feeds.
To enable functionalities that rely on high bandwidth data, emergency services
organisations have expressed an interest in obtaining mobile broadband services,
potentially by implementing a private network. Decisions about funding for these
services, purchase arrangements if a private network is to be deployed, as well as
access to suitable spectrum will need to be made by the government in due course.
In the meantime, the Ministry will monitor international and local developments to
enable it to provide advice on possible options for further spectrum allocations for
emergency services’ use.
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6. Compliance
The limiting factor to use of the radio spectrum is harmful interference. While the
Ministry aims to mitigate this interference through the licensing framework, there are
a number of compliance issues that are driving changes in radio spectrum
management in New Zealand.
As spectrum management by licensing is a long-term process, failure to comply with
the framework rarely produces evident interference in the short term. Nevertheless,
noncompliance inevitably causes some harm that can become obvious interference
once spectrum becomes congested. At this point determination of the interference
source can be very difficult. Accordingly, a proactive approach to compliance
monitoring and enforcement is the most effective manner of protecting the licensing
framework and industry investment.
The main risks to the established licensing framework in New Zealand are:
•
services established outside the licensing framework
•
services established not in accordance with a licence
•
the improper installation of equipment or subsequent maladjustment during
maintenance
•
the ineffective use of information through poor engineering resulting in
licences which do not properly mitigate interference.
The Ministry is already undertaking a number of measures, as outlined in the next
section, in order to minimise the impact of these risks.
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Section C – Key spectrum projects
Based on the forecast developments in the radiocommunications industry, the
Ministry has identified a number of key projects for the next five years, which are
presented below. It is expected that the consultation process will help to identify
further projects for the Ministry to consider for the Outlook period.
1. Legislative framework amendments
Drivers:
More Efficient and Effective Provision of Public Services
Compliance
Emerging Technologies
Act review
The last major review of the Radiocommunications Act was undertaken 15 or so
years ago, and resulted in the passage of amendments to the Act in 2000. Since
then, amendments to the legislation have been mostly minor.
With technologies rapidly evolving in new shapes and forms, the Ministry considers
that it would be timely to review whether the current form in which spectrum rights are
technically defined is still the most appropriate.
The flexibility offered by new technologies poses various regulatory challenges; in
particular, facilitating the introduction of new services while managing the existing
rights of incumbents. For example, smart technologies that can share spectrum with
existing users may suit “public park” licensing, although existing users may have
existing commercial rights over that spectrum.
In addition, the Ministry wishes take this opportunity to examine how well some key
aspects of the Act are working, in particular:
•
the effectiveness of provisions relating to management of interference to
radiocommunications
•
competition safeguards to prevent anti-competitive behaviour
circumstances not already addressed by Commerce Act provisions
•
whether it would be beneficial to introduce a means of establishing a regional
division of management rights.
in
The Ministry is keen to hear stakeholders’ views on whether there are other aspects
of the legislative framework that should be examined.
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Regulations amendments
The Ministry is currently considering a number of minor amendments to the
Radiocommunications Regulations 2001 designed to improve the efficiency and
effectiveness of radio spectrum licencing and compliance, including:
•
improving the ability of the compliance team to deal with interference to
radiocommunications from electrical equipment, and the importation of
prohibited and non-compliant equipment
•
minor changes to the licensing framework focussed on reducing costs,
expanding the use of online services and more closely aligning end-user
certification with international standards.
2. Management framework
Driver:
More Efficient and Effective Provision of Public Services
Changes in Usage
From the Ministry’s perspective there would be some clear advantages to expanding
the extent of the management rights regime. Some aspects of the management
rights regime, such as the flexibility offered by tradable licences, would appear to
offer benefits for all bands.
However, the Ministry also recognises some
disadvantages of the regime and acknowledges limited industry enthusiasm for major
change.
We propose to consider simplifying spectrum management in New Zealand by
creating all future administrative radio licences in a technical and administrative
format that is nearly indistinguishable from spectrum licences. This would simplify
Ministry records, provide more consistency for stakeholders and aid in any future
conversion to a property rights regime. In some particular frequency bands the
prescription and form of licences could be changed in bulk.
There may also be benefit in converting some sets of spectrum licences in the Crown
management rights into private management rights. For example, after digital
switchover (“DSO”) and restacking, each national broadcaster will be using licences
in a particular “block” of spectrum, with no other broadcasters sharing that block.
These broadcasters may see some value in holding national management rights for
their blocks. For example, they would have considerable flexibility regarding any
future expansion of services, or the use of the spectrum for any other purpose which
they consider to have commercial benefit. As these licence holders will have already
paid for spectrum licences covering the majority of the population, any further
resource charge for a national management right would likely be insignificant.
Other usages traditionally licensed under the radio licensing regime could potentially
transition to the property rights regime. Examples of where this might be suitable
include the emergency services bands which are administered by the Public Safety
Radio Frequency Management Group, and bands used for studio-to-transmitter links,
exclusively used by the radio broadcasting industry. This would give right-holders
flexibility while encouraging efficient allocation of the spectrum through trading,
particularly as demand begins to outstrip supply.
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Alternatively, administrative incentive pricing could be used to encourage more
efficient spectrum use in the radio licensing bands. While the Ministry has no current
plans to introduce such a system, we will keep a watching brief on developments in
this regard.
The Ministry will consider these issues following the finalisation of television licence
renewals. Any changes in this area will only take place after consultation with
affected stakeholders.
3. Digital switchover and the digital dividend
Drivers:
Mobile Broadband
Broadcasting
Analogue to Digital Transition
The government has announced that the switchover to digital television will be
completed by November 2013. The switchover will be a four step process
commencing in Hawke’s Bay and the West Coast in September 2012. The Ministry
for Culture and Heritage, under the Going Digital brand, is leading the drive to
prepare the remaining households for digital television, with input from the Ministry as
required.
Digital television offers many benefits, including better picture quality, increased
number of channels, an end to “ghosting”, and the potential for services such as high
definition or 3D content not possible with analogue broadcasting.
Most significantly for the Ministry, the switchover to digital television frees up a
significant amount of radio spectrum in the 700 MHz band for new uses (“the digital
dividend”). The government has previously agreed that following DSO, spectrum in
the 694-806 MHz band will be primarily allocated to new mobile broadband services.
The allocation of this band for mobile broadband use is consistent with the demand
for additional spectrum to satisfy the increasing use of mobile data services.
The digital dividend is located in a frequency range ideal for new mobile services due
to its propagation characteristics and bandwidth capability, as well as the expected
availability of large contiguous blocks. These characteristics will make it more costeffective to roll out 4G cellular networks, with fewer cell sites needed, resulting in
lower cost services for consumers. It also means that LTE could provide fast, reliable
wireless broadband to rural and lower density areas.
A report prepared for the Ministry by Venture Consulting suggests that allocating this
spectrum for new cellular mobile services could bring economic benefits in the order
of $1.1 billion to $2.4 billion over 20 years when compared with use of higher
frequency bands for those services.
The Ministry is engaging in international planning in the Asia-Pacific Telecommunity
and the International Telecommunication Union to ensure harmonisation of our
planning with other countries. This is essential to ensure the wide availability of
handsets and radio equipment at low cost.
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Stakeholders were consulted in late 2011 on options for the allocation of the 700 MHz
spectrum. A discussion document sought views on allocation methodology, the
expected use of the spectrum and the adoption of an appropriate band plan,
competition concerns, timing of allocation and access to the spectrum, as well as
arrangements for other potential users of the spectrum such as radio-microphones
and public safety uses.
The Ministry expects to report back to government in 2012 with recommendations on
these issues. Dependant on these decisions, the Ministry expects to run an
allocation process after a targeted consultation on any specific rules and
methodology.
Restacking
In order to free up the digital dividend for new uses it has been necessary to transfer,
or “restack”, a number of existing digital terrestrial television licences from the
700 MHz band into the lower portion of the UHF TV band. The Ministry has facilitated
this restacking process well in advance of DSO, on a region-by-region basis. At the
time of publication, the Ministry-led restacking process was close to completion.
However, further frequency changes are required in order to improve the efficiency of
spectrum use in the UHF TV band. In some regions digital television licences are still
on temporary frequencies. The licensees using these temporary frequencies are
responsible for restacking to their assigned long-term frequency. They are required
to do that within two years of DSO.
4. International participation
Drivers:
International Harmonisation
Mobile Broadband
New Zealand’s participation in international organisations is an important part of
promoting new opportunities for New Zealand business through the innovative and
efficient use of the radio spectrum. It also supports the protection and development
of our infrastructure and the development of strategic relationships between New
Zealand and other countries.
The Ministry will promote New Zealand’s interests in APT and ITU meetings
throughout the next five years. These interests can be summarised as the
maintenance of an efficient, flexible and liberalised international radiocommunication
framework which is consistent with:
•
the government’s Business Growth Agenda
•
the government’s National Infrastructure Plan
•
World Trade Organisation principles and obligations
•
New Zealand’s telecommunication and broadcasting policy and regulatory
regimes
•
the protection of existing radio-based services.
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A key focus for the Ministry will be preparing for the next World Radiocommunication
Conference to be held in 2015. In consultation with the New Zealand Radio Sector,
the Ministry will develop positions consistent with the above principles. Preparations
will include the identification of additional spectrum bands for future mobile broadband
technologies, including 5th generation cellular services, taking account of:
•
existing spectrum use
•
physical limitations such as antenna size
•
propagation issues such as building penetration to maintain service availability
•
bandwidth requirements to meet increasing data demands for services such
as video streaming.
Noting that, over time, countries have used spectrum for differing purposes, New
Zealand will continue to encourage countries to harmonise allocations where
possible, to achieve economies of scale. For example, New Zealand is supportive of
proposals by some African and Arab administrations for new allocations in the ITU
Radiocommunication Regulations that would allow them to consider adopting the
700 MHz APT band plan.
Outside of ITU processes, New Zealand will continue to urge administrations to
recognise the economic benefits of harmonised bands.
An example where
international radiocommunication regulations changes are not required but
harmonisation could occur is in the use of the 700 MHz band in Central and South
America.
The Ministry’s international engagement will also focus on:
•
revision of Resolution 646 for broadband public protection and disaster relief
•
provision of additional spectrum for science services including earth
exploration satellite
•
the implementation of digital technologies in the maritime mobile service
•
the promotion of new services, with suitable constraints, to support future
spectrum requirements in the aeronautical service, including the safe
operation of aircraft
•
the protection of existing services from potential interference resulting from the
allocation of frequencies to new services
•
the allocation of additional spectrum for use by the amateur radio service.
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5. Review of VHF Band III
Drivers:
Broadcasting
Analogue to Digital Transition
Digital switchover will also release spectrum in VHF Band III, covering 174-230 MHz.
The Ministry plans to review possible uses for this band during the Outlook period. In
the Asia Pacific region (Region 3) the ITU has allocated the band to fixed, mobile,
broadcasting, and aeronautical radionavigation services.
Internationally, the use of the band after its release has centred on digital
broadcasting, both audio and television. While Band III is used for digital terrestrial
television (DTT) broadcasting in several countries, the Ministry is of the opinion that
the allotted UHF spectrum will be sufficient for DTT in New Zealand for the
foreseeable future. The Ministry also notes that the specification published by
Freeview Ltd requires consumer equipment operation in the UHF bands, but does not
anticipate operation in the VHF bands.
Band III could be used for digital radio; however, as discussed in the previous
section, there is a lack of certainty about the level of demand for the service in New
Zealand. Alternatively it is possible that international standards for other equipment
will develop in this band. The Ministry intends to review the possible uses for the
band and will consult with interested stakeholders on options.
6. Crown asset management functions
Driver:
More Efficient and Effective Provision of Public Services
Over the next five years the Ministry will undertake a considerable amount of work in
managing licences in the Crown-retained management rights.
Broadcasting
As the final DSO date of 30 November 2013 approaches, the Ministry will arrange the
allocation of long term digital licences to existing licensees. Those licensees who
purchased ten year analogue UHF licences from 2010 have the option to convert
these to 20 year digital licences from DSO, with the remaining portion of their existing
payment credited towards the new licence prices. These prices are being developed
using an economic formula and study commissioned by the Ministry. It is currently
unclear how many existing licensees will exercise their conversion option.
The Ministry plans to re-evaluate the allocation process for broadcasting spectrum
licences. The current policy assigns short-term licences after they are engineered, at
a calculated resource charge, until a sufficient number of temporary licences have
accumulated to justify an auction. While this is simple from an administrative
perspective, it creates considerable uncertainty for prospective broadcasters. After
paying for premises, staff, broadcast equipment, and a temporary licence, they run
the risk of losing the long-term licence at auction. The Ministry will advise the
Minister on possible changes to the timing parameters of future auctions in order to
reduce this uncertainty.
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Managed spectrum park and 3.5 GHz regional allocations
The Ministry plans to consider whether any amendments to the managed spectrum
park rules are necessary in advance of the first licences expiring in 2016. The focus
of any changes will be on ensuring that the spectrum is being used as efficiently as
possible, and reducing the administrative burden on the Ministry of managing the
park.
A number of regional fixed wireless broadband licences remain available in the
3.5 GHz Crown management right. We will consider how best to allocate these
licences, and whether any changes to the associated implementation requirements
are required.
7. Fixed services review
Drivers:
Fixed Services
More Efficient and Effective Provision of Public Services
A review of fixed services bands is planned. It is expected to identify current usage of
New Zealand allocations and identify any opportunities and potential efficiency gains
in the bands. It will consider international trends and allocation practices and
compare these with current New Zealand practices.
The review will evaluate a range of options for the future that could include:
•
the use of assignment policies to increase spectral efficiency
•
the allocation of new fixed services bands
•
the reconfiguration of existing fixed services bands
•
converting some bands from the radio licensing regime to the management
rights regime.
8. Spectrum for emergency services
Drivers:
Emergency Services
Analogue to Digital Transition
The Ministry will monitor international and local developments to enable us to provide
advice on options for further spectrum allocations for emergency services’ use as
required.
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9. Documentation review
Driver:
More Efficient and Effective Provision of Public Services
The Ministry publishes a series of documents that give information and prescribe
rules for allotment, allocation and assignment. Currently there are two main types of
Ministry documentation:
•
Public Information Brochures (PIBs) – these cover information and rules
relating to the use of radio spectrum
•
Policy Documents (POLDOCs) – these cover legacy operational policy rules
that have yet to be incorporated into PIBs.
The Ministry has identified that some of the documentation has become out-dated
and that some is incomplete. A project is currently being run to review, restructure
and update the documentation. The aim of this review is to provide clear and
complete information and rules to industry, particularly Approved Radio Engineers
(AREs) and Approved Radio Certifiers (ARCs).
As part of this review the Ministry has produced a number of new PIB documents to
update and consolidate the rules and information from the POLDOC series, which will
then be cancelled. The final PIB document to be completed will be PIB59, covering
Crown management rights. The Ministry intends to publish a consultation draft
shortly.
10. Transactional service delivery
Drivers:
Compliance
More Efficient and Effective Provision of Public Services
The SMART online system, which incorporates the Register of Radio Frequencies, is
the current primary delivery mechanism for licensing services. Over the last nine
years the development of online services and use of private sector engineers has
significantly reduced turnaround times for licensing. It remains our objective to
improve services while containing costs within our present baseline.
Over the last year the key focus has been the transition to full online spectrum
licensing forms. The most commonly used forms are already available online and the
other lesser-used forms prescribed in the regulations will gradually be converted as
resources permit.
The focus for 2012 is the development of web services. This will enable clients to
directly extract data from SMART to suit their own uses and applications. In the
longer term the Ministry intends to explore “upload” web services, Google maps
integration, and full real-time registration.
We have also begun considering
alternative software platforms for the online Register of Radio Frequencies. To this
end we are examining international developments in radio spectrum management
software and IT platforms.
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11. Fees review
Driver:
More Efficient and Effective Provision of Public Services
The costs associated with radio spectrum planning, interference investigation,
licensing and compliance are appropriated by Parliament under Vote
Communications, and funded by way of annual administration fees levied on
licensees under the Radiocommunications Regulations. The Ministry maintains a
memorandum account to record whether a surplus or a deficit is achieved in each
year, with the intention of maintaining the fees charged so they reflect actual costs on
a long-term basis.
The fees are currently set to recover less than the actual costs incurred, in order to
reduce the current surplus in the memorandum account. In due course, fees will
need to be re-set to reflect costs to ensure that the memorandum account does not
move permanently into deficit.
As well as the overall income/expenditure balance, consideration needs to be given
to the relative fees levels in the various categories of licence. In particular, television
licences have carried a component relating to domestic interference complaints and
investigation which has reduced over time with the switch to digital reception. The
Ministry’s costs are now much more related to costs of records, transaction systems
and administration for each licence, which could point to a far flatter fee structure per
licence than has existed in previous years.
The Ministry plans to release a discussion paper reviewing costs for spectrum
management with a view to determining what changes to the annual administration
fees are appropriate to fund the necessary spectrum management activities.
12. Compliance projects
Drivers:
Compliance
More Efficient and Effective Provision of Public Services
The following work is planned to help manage the risk of interference from
radiocommunications and electrical equipment.
Wider use of the regulatory compliance mark
The Radio Spectrum Management and Energy Safety groups are working with the
Australian Communications and Media Authority and Australian electrical safety
regulators towards wider use of the Regulatory Compliance Mark (RCM
) which is
shared by Australia and New Zealand.
The mark can be used to replace compliance marks such as the C-tick used for
electromagnetic compatibility, and the various approval numbers used for electrical
safety labelling. It is expected that the simplification of a single mark (and register)
will reduce compliance costs for manufacturers and suppliers and improve consumer
recognition of compliant product.
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Working with Customs
The Ministry is in discussions with the Customs Service about developing an
interagency Memorandum of Understanding over product border control. Once this is
agreed, it would be followed by the establishment of operational guidelines.
Discussions with Customs will also be necessary on the better management of
internet and low cost traders’ product imports.
Reviewing location data in SMART
A location data project is underway to review, verify and, where necessary, arrange
correction for location data in the SMART database.
Working with key international partners
We are planning to develop a Mutual Recognition Agreement with Australia in order
to improve cooperation regarding band planning and emerging technologies that
concern both countries.
The Ministry also intends to study and possibly participate in a wider European and
US initiative for trans-border controls and compliance activity.
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Section D – Summary of Spectrum
Developments
Broadcasting
Television
Broadcasting
Sound Broadcasting
Class of Type of
Service Service
Expected
Change for
2012-2016
Policy and
Planning
Implications
MF AM
Some reduction in usage
by high power
transmitters with little
change in numbers of
licences. Possibly some
experimental digital
transmissions.
Possible consideration of
changes to government
policy on commercial
digital broadcasting.
Further interference
investigation may be
required.
HF AM
Very little change. There
may be some new digital
services introduced in
this period.
None.
VHF FM
Heavy demand will
continue with expansion
of coverage in the band
100-108 MHz.
Possibility of further
spectrum sales.
Digital audio
broadcasting
Pilot transmissions using
both DAB and HD Radio
technologies have
occurred.
Industry determination of
technology preference.
Consideration of sound
broadcasting as part use
of VHF Band III (formerly
TV broadcasting) and/or
added to VHF-FM
licence arrangements.
VHF Terrestrial
Television
Cessation of analogue
television services (2013)
at VHF in Band I and
Band III.
Consideration of
reallocation of vacated
Band III spectrum
UHF Terrestrial
Television
Switch off of analogue
television and the
progressive introduction
of more services.
Further planning around
DSO and the restacking
of existing services.
Satellite Television
Increased program
availability.
Consideration of band
requirements.
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Radiocommunications
Mobile
Radiocommunications
Fixed Radiocommunications
Class of Type of
Service Service
Expected
Change for
2012-2016
Policy and
Planning
Implications
VLF, LF, MF, HF
Fixed
Introduction of HF digital
linking likely with
frequency congestion
problems below 10 MHz.
Monitor international
developments and New
Zealand demand.
UHF Fixed
Continual upgrading of
existing services to digital
formats; possible review
of digital and analogue in
these bands.
Consideration of policy
changes to analogue/
digital services.
SHF, EHF Fixed
New FS requirements
above 3 GHz, continued
expansion of Fixed
Wireless Access and
digital microwave back
haul with a move to high
efficiency digital
modulation.
Monitoring of
international
developments. Review
of fixed services.
Low Power
Applications
Continued development
of spectrum sharing
technologies to deal with
increasing congestion in
allocated spectrum.
Alignment with
parameters of
international allocations.
Consideration of
provisions to allow white
space use.
Aeronautical
Mobile
Some reduction in HF
dependence due to MSS
take-up leading to MSS
congestion issues.
Proliferation of wide band
MSS. Some
rationalisation of VHF
usage.
Monitor international
developments and New
Zealand demand.
Land Mobile other
than emergency
services
Below 30 MHz little
change, widespread
migration to digital
services in the VHF and
UHF bands. End of
25 kHz channelling for
analogue.
Consideration of fixed
services.
Emergency
services Land
Mobile
Moving to digital with a
whole of government
approach increasing
international
harmonisation.
Possible changes to
allocation and
government policy.
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Satellite
Radiocommunications
Maritime
Slow uptake of digital and
satellite technologies.
Some new digital HF
systems are expected as
well as high MSS growth.
Monitor international
developments and New
Zealand demand.
Cellular Mobile
Introduction of 4G
services along with
expansion of 3G services.
Improvement in spectrum
sharing technology.
Likely changes to
allocation, development
of government policy,
considerations for
legislation and spectrum
sales.
Low Power Mobile
Devices
New global applications
will come into use that
could cause problems to
existing users in the
same band. Continued
spectrum demand for
radio microphones.
Alignment with
parameters of
international allocations.
Consideration of
provisions to allow white
space use.
Geostationary
Fixed Satellite
Growth in the number of
high bandwidth, high
power networks is
expected in support of
ICT activities.
Continuing involvement
in the ITU satellite
coordination process.
Geostationary
Mobile Satellite
Constant expansion of
global and regional
networks to meet
demand. Introduction of
new bands and sharing
arrangements.
Continuing involvement
in the ITU satellite
coordination process.
Non Geostationary
Fixed Satellite
Further expansion and
increases in data
throughput.
Continuing involvement
in the ITU satellite
coordination process.
Non Geostationary
Mobile Satellite
Further expansion and
increases in data
throughput.
Continuing involvement
in the ITU satellite
coordination process.
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Radiodetermination
Radiodetermination
Class of Type of
Service Service
Change for
2012-2016
Policy and
Planning
Implications
Terrestrial
Radionavigation
Limited changes to the
maritime services. Some
changes to the
aeronautical service with
some reduction in the
dependence on ground
based aeronautical
services with more
reliance on RNSS.
Monitor international
developments and
New Zealand demand.
Terrestrial
Radiolocation
Continuous
improvements in existing
allocations. Ground
based radiolocation is
likely to continue, with
improvements in signal
processing and new
mobile radar.
Monitor international
developments and
New Zealand demand.
Radionavigation
Satellite
Continuous
improvements with new
systems and networks.
Monitor international
developments and
New Zealand demand.
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Science Services
Science Services
Class of Type of
Service Service
Change for
2012-2016
Policy and
Planning
Implications
Meteorological
Aids
Little change is expected
throughout the forecast
period though there may
be more sophisticated
data collection and better
digital transmission radio
links.
Little / none.
Meteorological
Satellite
Little change is expected
throughout the forecast
period.
Continuing involvement
in the ITU satellite
coordination process.
Radio
Astronomy
It has recently been
announced that the
Square Kilometre Array
(SKA), a $2.5b radio
telescope, will be hosted
in Southern Africa and
Australasia. Depending
what components of the
project will be located in
New Zealand, a “radio
quiet zone” may be
required.
There may be a need to
consider mechanisms,
possibly including
measures under the
Radiocommunications
Act, to ensure “radio
quietness”.
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