Radio spectrum changes come in for more scrutiny

By Richard Braddell

WELLINGTON - A disbanded industry working group on the auction of radio spectrum suited to high-speed mobile internet and other next-generation telecommunications services is to reconvene on Wednesday.

The so-called 2GHz working group will consider changes believed necessary to the terms of the radio spectrum, given significant advances in the year since they were set.

The group, which includes a variety of radio and telecommunications representatives under the aegis of the Ministry of Commerce, was reconstituted after a meeting of the Major Spectrum Users Group three weeks ago.

Acting on concerns raised by Vodafone and Broadcast Communications Ltd based on the substantial changes in telecommunications environment and technology since the 2GHz auction framework was settled a year ago, the users believe those changes need to be taken into account in the auction structure.

The auction has been delayed because of a claim to the Waitangi Tribunal, which has ruled that Maori have ownership rights that must be considered in the spectrum sale.

While the Government has rejected speculation that a $15 million grant for Maori culture and development was a trade-off for the claim, the Maori spectrum issue is set to go to cabinet today for further consideration.

Meanwhile, there is industry concern that a quick decision by the Government on the Waitangi claim could result in an early auction, which will be internet-based and could run through the Christmas period, when Y2K concerns will be to the fore.

Among concerns raised by Vodafone and BCL were:

* Incumbents who have five years to vacate the 2GHz spectrum would get an extra year, given auction delays.

* Another year would have gone by before the expiry of Vodafone's spectrum rights in 2011, but it would enter an auction for new spectrum with no idea whether its existing rights could be renewed.

* Spectrum lots may not be optimally sized in light of better knowledge on what technology is likely to be used for third-generation wireless. The result could be less efficient allocation and exclusion of potential competitors.

* A lack of progress in determining outstanding issues relating to a guardband in the 2GHz spectrum.