The Government says the move would increase competition and also free up spectrum to go to Defence, small rural providers and iwi (previous rounds have involved blocks of radio rights going to Māori to address, but not settle, Treaty claims on spectrum).

Those options were laid out in a June 8 Cabinet paper, based on a Ministry for Business, Innovation and Employment (MBIE) briefing to Communications Minister Paul Goldsmith, which has now been publicly released, triggering Spark to release an update to the NZX.

“Spark is concerned that this policy direction introduces an unwelcome level of uncertainty for the telecommunications sector at a time when sustained, long-term investment is critical to New Zealand’s digital and economic future,” the telco said.

“As currently framed, the approach signalled reduces the amount of spectrum Spark can use to serve customers on its network and raises questions about ongoing access to key spectrum bands.

“This uncertainty risks impacting the timing and scale of investment in network infrastructure, including in regional New Zealand.”

One NZ spokesman Matt Flood said the white paper proposals “introduce uncertainty given how essential spectrum is to run and operate mobile networks”.

“While we don’t expect the Government’s intended approach to have an immediate material, direct impact, long-term certainty around spectrum is critical for operators to invest confidently to meet the needs of New Zealanders, particularly in regional and rural areas.”

The white paper includes an independent valuation of the “valuable spectrum rights” but it is redacted.

Cost of living implications?

The white paper says: “There are no immediate or direct cost-of-living implications arising from the proposals in this paper.”

But it adds that there could be an “indirect impact”.

“However, costs associated with obtaining (spectrum) management rights may be passed on to consumers of communication services.”

With the economy tight, One NZ, Spark and 2degrees have recently shown little appetite for absorbing extra costs.

Increases in Chorus wholesale rates for fibre have been passed on to customers, for example.

Hope for Wisps?

The white paper says 50MHz of 2600MHz spectrum could be set aside for “non-national, regional users” – a reference to the network of small wireless internet service providers or “wisps” around rural New Zealand, who say their businesses are threatened by the arrival of Elon Musk’s Starlink – which pays in the single-digit thousands for each dish in its ground stations.

Earlier this week, Jesse Archer, owner of Bay of Plenty wisp Full Flavour, said provincial and rural providers weren’t looking for a handout, just access to spectrum.

The white paper was close, but no cigar. It suggested wisps get access to a chunk of 2GHz spectrum.

However, Archer said, “Many Wisps have already deployed equipment that supports the 3GHz band, making it a practical and cost-effective option for expanding rural broadband services … There is little interest in the 2GHz.”

There will be a round of consultation, potentially followed by more policy work. The commercial auctions are slated for some point in 2027.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.

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