National interest part of satellite conditions

By ADAM GIFFORD

Prospects for a New Zealand satellite just got better with the release of the Government's allocation plan for the satellite downlink frequencies granted to this country by the International Telecommunications Union.

Associate Communications Minister David Cunliffe said the Government was asking potential satellite operators to submit work programmes.

He said the rights must be exercised in the national interest, so operators must include ways for Crown agencies to negotiate access to the satellite to meet specific policy objectives.

"Previously satellite networks covering New Zealand have been developed through other countries but there may now be commercial interest in establishing a satellite through New Zealand," Cunliffe said.

New Zealand has the right to frequencies for a broadcasting satellite service at 158 degrees east and a fixed satellite service at 152 degrees east.

NZLSAT director Katharine Moody said her company, which is putting together a US$125 million ($180 million) consortium to launch a satellite at 158 degrees east, was pleased with the decision.

"We look forward to learning more details of the proposed frequency access, in particular exclusivity of downlink frequencies," Moody said.

A discussion paper released by the Ministry of Economic Development in June said SingTel-Optus was also interested in the frequencies.

The allocation plan doesn't rule out letting a foreign-owned company use the frequencies, although it does require a satellite control centre be located in New Zealand, unless the Crown agrees otherwise.

It also requires that the Crown maintain sufficient control to ensure compliance with New Zealand and international law.

This is because under ITU rules, if a satellite causes interference to the frequencies of another country's satellite, the Government is responsible for fixing the problem.

Applicants must set out a work programme with agreed milestones. If they fail to make those milestones, the Govern-ment can start working with another applicant.

This is similar to the model proposed in NZLSAT's response to the discussion paper.

Ministry of Economic Development policy adviser Ian Hutchings said the intention was to create an open, competitive process under which potential operators could start work.

"The Government has these two regulated slots which are ready to use, but we don't see the Government is the right vehicle to create a satellite business," Hutchings said.

He said services must cover New Zealand and parts of the Pacific. "New Zealand does not expect to be just a satellite broker."

Optus spectrum planning manager Lex Vipond said SingTel-Optus already served New Zealand from its satellites at 156 degrees and 160 degrees east. That means it would need to work closely with whoever won the adjoining rights.

It was selling capacity on its D1 and D2 satellites and had signed long-term contracts with Sky and Television New Zealand.

D1 was due to launch in December next year.

He said the allocation plan left the door open for SingTel-Optus to apply for the satellite slots directly.

"In terms of the general philosophy, we are happy at the way the ministry picked up on a couple of the points we made about the discussion paper," Vipond said.

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