The New Zealand Government has given the go signal to enable further development of 5G networks by making appropriate spectrum available.
The Broadcasting, Communications and Digital Media Minister, Kris Faafoi, has confirmed Cabinet approval for the allocation of short-term rights to an unused portion of 3.5 GHz spectrum.
3.5GHz is the first spectrum band to be allocated for high-speed 5G data services. The short-term rights will run from mid-2020 to 31 October 2022.
Benefits of 5G Network
- Having early access to this spectrum will allow the telecommunications industry to move forward in their development and deployment of 5G services now instead of waiting until long-term rights are switched on in November 2022.
- 5G offers significantly improved data speed and capacity for conventional mobile and fixed wireless broadband networks.
- Additionally, it will enable the next wave of productivity and innovation across multiple sectors.
- Progressing with 5G will ensure New Zealand:
- Keeps pace with global developments
- Give the country world-class connectivity
- Provide a platform for exciting new applications, which can improve future livelihoods and ways of life
- The decision also provides an opportunity for Māori interests in the radio spectrum. These interests include digital enterprise and jobs, healthcare, rural economy and connectivity, education, broadcasting, and revitalisation of Te Reo.
- Short-term allocation of the spectrum will also be made available to Māori. Moreover, a support programme to build Māori capability in spectrum-related industries will be developed to maximise the benefits of this opportunity.
- This has been developed in partnership with a Māori Spectrum Working Group.
- The Māori Spectrum Working Group was established by Māori in May 2019 to work with the Crown towards an enduring solution to Māori interests in radio spectrum.
- Further details of the short-term allocation will be released early next year.
- Long-term rights to 3.5 GHz spectrum are still on track to begin in November 2022 and details of this allocation will continue to be developed over the next two years.
Background of the Initiative
In February 2019, the Government announced that the first spectrum band to be allocated for 5G services would be the 3.5 GHz band, with new rights starting when existing rights in this band expire in November 2022.
However, about one half of the 3.5 GHz band is currently unallocated. The Government is allocating short-term rights to this unused portion of the 3.5 GHz spectrum.
The unused portion will be allocated as such:
- These national rights will be allocated as management rights for a term beginning mid-2020 until 31 October 2022
- These national rights will be allocated via auction, the standard method for allocating new cellular mobile spectrum rights in New Zealand and overseas
- A limit will be set on the amount of spectrum allocated to any one network operator, called spectrum caps, in the auction to promote competition
- A condition will be imposed that successful bidders will be required to return to the Crown existing management rights they hold elsewhere in the 3.5 GHz band, to maximise the efficient use of this important spectrum
- Minimal conditions of use are required of successful bidders, reflecting the short duration of these rights and no guarantee of long-term access to spectrum
