Vote: Communications
Output Class D1- Policy Advice - Communications
Description
This output class provides policy advice in respect of telecommunications, postal services, broadcasting and the management of radio spectrum allocation.
Quantity, Quality, Timeliness and Cost
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Delays and changes to deadlines were negotiated with the Minister.
Key Deliverables in the Work Programme for 2002/2003
Telecommunications
Provide advice on the Telecommunications Commissioner’s recommendations to the Minister within three months of their receipt in the Ministry.
No recommendations were received during the year.
Implement regulations and any policy decisions under the Telecommunications Act 2001 within the timeframes set by Government.
Regulations were passed, within the required timeframes, establishing the levy to fund the activities of the Telecommunications Commissioner.
Report to the Minister on the comparative performance of the New Zealand telecommunications regime in respect of prices and the uptake of key new telecommunications services, by 30 June 2003.
A report was provided to the Minister on 30 June 2003 identifying key price and uptake issues.
Report to the Minister with recommendations on initiatives to facilitate the contestable provision of telecommunications services in remote areas by 31 December 2002.
The requirement to report with recommendations on facilitation of contestability by 31 December 2002 was not met due to delays by the Commerce Commission in modelling and costing the telecommunications services obligations (a necessary input for analysis). As a result of continued delay in the Commerce Commission process, Ministerial approval was obtained in January 2003 to carry this work forward into the 2003/2004 year.
Postal Services
Report to the Minister on proposed amendments to the regime for postal services, by 31 March 2003.
Reports were provided to the Minister on the possible scope of a review of the postal access regime, linkages with sole designation under the Universal Postal Union (UPU), and the relative priority of this work against other Ministry priorities (advising that the review should be postponed given other priorities). Cabinet decided to defer any review of the postal access regime until 31 July 2004.
Renegotiate the Deed of Understanding with New Zealand Post, by 30 June 2003.
Cabinet decided to defer any review of the Deed of Understanding until 31 July 2004 in conjunction with the decision to defer the review of the postal access regime.
International Negotiations in Telecommunications
Represent New Zealand’s interests at the 2002 International Telecommunications Union plenipotentiary conference, by 31 December 2002.
The Ministry developed a brief and led the New Zealand delegation to the 2002 International Telecommunications Union (ITU) plenipotentiary conference at Marrakech from 23 September to 18 October 2002. The following New Zealand interests were addressed: agreement to review and reduce the scope of the telecommunications regulations; new budget control measures introduced (led by New Zealand); and ITU outputs are now more focused on the needs of administrations.
Make a significant ongoing contribution to the development and representation of New Zealand’s negotiating position in the World Trade Organisation, the International Telecommunications Union, the Universal Postal Union and APEC Tel.
Ongoing monitoring was provided with active assistance to MFAT and advice to the Minister on the WTO Doha Services round. Mutual recognition processes have been developed to enable New Zealand to support the APEC Tel Mutual Recognition Agreement framework for testing telecommunications equipment with the objective of formally adopting the framework later in 2003.
Radio Spectrum
Allocate spectrum suitable for Frequency Modulation (FM) broadcasting, by 30 June 2003.
Policy advice on the upper FM band and low power FM was considered and agreed by Cabinet on 30 April 2003. Planning for an auction of FM licences has commenced, and a General User licence for low power FM broadcast services has been introduced.
Allocate spectrum suitable for Wireless Local Loop (WLL) and Local MultiPoint Distribution Services (LMDS), by 31 December 2002.
Policy advice was provided to the Minister on an auction of spectrum suitable for WLL and LMDS and cellular services. An auction was held in July-August 2002, and advice provided to the Minister on the outcome. Management rights were sold after consideration of competition issues. The policy for licensing in two WLL blocks retained by the Crown will be finalised once decisions on Project Probe are confirmed. It is expected that decisions on Project Probe will be made in the second quarter of 2003/2004.
Report to the Minister on a programme of spectrum allocation for the period 2003-2006, by 31 March 2003.
The Ministry held an industry workshop to present and obtain feedback on criteria developed to determine which spectrum is most suitable for moving from the administrative regime to the rights-based regime over the next three years. A report on “A programme of spectrum allocation for the period 2003-2006” was provided to the Associate Minister of Communications on 25 July 2003.
Implement revised procedures for consulting with Māori on the suitability of using specific spectrum for promoting Māori language and culture, by 31 December 2002.
The Ministry submitted a Cabinet paper on the recommended procedures to Ministers in December 2002.
Report to the Minister on whether any changes are needed to the rights-based regime under the Radiocommunications Act in the light of advances in communications technology, e.g. wideband spread spectrum, by 30 June 2003.
A report on this issue was provided to the Minister on 27 June 2003. The report concluded that there is a need for the Ministry to address issues around ultra-wideband technology and future spectrum allocation plans to take account of the emerging technologies.
Report to Ministers on the role of government in relation to digital television, by 31 March 2003.
On 9 December 2002, Cabinet approved a paper on certain key issues, including choice of transmission platforms and analogue switch-off, and requested a series of reports back on further policy issues from the Ministry of Economic Development and the Ministry for Culture and Heritage.
The report-back papers (six in total) were submitted to Ministers during July/August 2003. Decisions have now been made on all aspects of the Government’s role in digital television.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 2,339 | 2,159 | 2,042 | 2,016 |
| Other | 41 | 41 | 41 | 44 |
| Total Revenue | 2,380 | 2,200 | 2,083 | 2,060 |
| Expenses: | | | | |
| Annual appropriations | 2,380 | 2,200 | 2,083 | 2,060 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 2,380 | 2,200 | 2,083 | 2,060 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
| Sources of Revenue Other | $000 | $000 |
| Cost recovery | 41 | 41 |
| Miscellaneous | -- | 3 |
| Total Revenue Other | 41 | 44 |
Major Budget Variances
The Supplementary Estimates change reflects a transfer of funding to Vote Energy to meet additional costs associated with policy work on future electricity and gas needs.
The variance between Supplementary Estimates and actual expenses reflects expenditure on consultancy services being deferred until 2003/2004 with the main consultancy project deferred being the postal access study.
Output Class D2 - Management and Enforcement of the Radiocommunications Act 1989
Description
This output class provides radio frequency spectrum management services. These include licensing and compliance management of radio frequency spectrum; registration of radio spectrum rights; and management of radio spectrum auctions.
Quantity, Quality, Timeliness and Cost
(Performance standards and forecast volumes are in brackets where applicable.)
Quantity
Numbers issued or assigned:
- 4,977 (8,000) radio licences;
- 222 (300) spectrum licences;
- 2,092 (3,000) management right and spectrum licence instruments registered;
- 1,517 (2,300) interference investigations;
- 18 (12) Electro Magnetic Compatibility (EMC) supplier compliance folder audits were undertaken. (All suppliers using the C tick label are required to maintain a compliance folder for each product supplied. This folder contains specified documents demonstrating the product’s compliance with applicable standards and is subject to audit.)
Volumes are demand driven. While the numbers forecast for instruments registered and licences granted were based on historical trends it is difficult to predict how many applications will be received in any one year because applications for new services are dependent on technology trends, equipment and spectrum availability. In terms of interference investigations, forecasts were based on historical trends, but these are responded to as the need arises.
Quality
For all licences issued in accordance with established ISO 9001 processes, ISO 9001 certification will be retained following quality audits.
An internal audit of spectrum rights registered will confirm full compliance (100%) with statutory requirements.
Both quality targets were met. An internal audit in May 2003 confirmed that the registration of management and spectrum rights complied with statutory requirements in all cases (100%); and an audit by Telarc in May 2003 confirmed that all licences were issued in accordance with established ISO 9001 processes.
ISO 9001 certification was retained.
Timeliness
86% (90%) of correctly completed radio and spectrum licence applications received were processed within the timeframes10 specified within the letter of acknowledgement.
28% (80%) of management rights and licence instruments were processed within five (5) clear business days of receipt. (However, by year-end, 100% of management and licence instruments were being processed within the timeframe.)
Neither of the above timeliness measures were met over the year. Accountability processes were reviewed during the year resulting in more extensive monitoring and monthly reporting of progress against objectives in the second half of the year.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | -- | -- | -- | -- |
| Other | 12,629 | 12,000 | 12,461 | 12,033 |
| Total Revenue | 12,629 | 12,000 | 12,461 | 12,033 |
| Expenses: | | | | |
| Annual appropriations | 11,349 | 11,849 | 11,324 | 11,386 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 11,349 | 11,849 | 11,324 | 11,386 |
| Net Surplus/(Deficit) | 1,280 | 151 | 1,137 | 647 |
| Sources of Revenue Other | $000 | $000 |
| Spectrum licence fees | 5,768 | 4,739 |
| RAL telecommunications | 584 | 666 |
| RAL - radio and mobile | 4,866 | 5,132 |
| Other fees | 217 | 347 |
| Total fees | 11,435 | 10,884 |
| Interdepartmental revenue | 997 | 1,110 |
| Net gain on sale of fixed assets | -- | -- |
| Miscellaneous | 29 | 39 |
| Total Revenue Other | 12,461 | 12,033 |
Major Budget Variances
The Supplementary Estimates change reflected anticipated additional costs associated with the Radio Spectrum Management Group restructure in November 2002.
The variance between the Supplementary Estimates and actual Revenue Other reflects greater than expected revenue from RTRW VHF fees for both radio and television. The variance between the Supplementary Estimates and actual expenses reflects the RSM review of November 2002 which, while additional costs were expected, resulted in expected savings crystallising earlier and at a greater value than anticipated.
The variance between 2002/2003 and 2001/2002 for Revenue Other mainly reflects an increase in RTRW VHF television fees.
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