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Output Class > Policy Advice > Communications

Description

This output class provides policy advice on information technology, electronic commerce, the Government's broadband strategy, telecommunications, postal services and the management of radio spectrum.

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. Changes to deadlines were negotiated with the Minister.

The following outputs were included in this output class for 2004/2005.

Information Technology Policy

This output involves policy advice on information technology and electronic commerce, including international technical developments and regulatory frameworks relevant to electronic commerce, and the Government's broadband and industry development strategies. In 2004/2005 the output included the following.

Developing and implementing a Digital Strategy for New Zealand, covering the major areas of transforming government, digital divide, business growth, security, infrastructure, and content.

The Digital Strategy is a whole-of-government initiative, involving many government departments, which is led by the Ministry of Economic Development as part of the Growth and Innovation Framework (GIF). The GIF Budget Ministers agreed to the Strategy being one of the GIF Flagships and core themes. Bids submitted for inclusion in the 2005 Budget were successful, representing all the core elements of the Strategy (content, capability and skills, and connection).

The Digital Strategy was launched on 16 May 2005, with appointments to the Digital Strategy Advisory Group announced on 23 June 2005. The Advisory Group (which came into effect on 1 August 2005) will work with the Digital Strategy Steering Group to establish criteria for funding under the Broadband Challenge and the Community Partnership funds. It is expected that applications to these funds will be available from September 2005.

Implementing Project Probe to achieve the Government's goal of high-speed broadband internet access being available in all New Zealand communities, in conjunction with the Ministry of Education.

Project Probe was a joint project between the Ministries of Education and Economic Development to make broadband available to all schools and their communities. The final roll out of Project Probe was completed by 30 June 2005,⁸ at which time all but five schools had access to broadband, along with 95% of households and businesses.

Telecommunications and Postal Policy Advice

This output involves policy advice on services and activities under the Telecommunications Act 2001 and on the letter post market. The output includes the development of regulations, where required, and representing New Zealand's interests at international fora relating to telecommunications and postal services. In 2004/2005 the output included the following.

Implementing and reviewing any regulated service resulting from the Local Loop Unbundling (LLU) determination.

Following completion of the Ministry's advice to Ministers on the Commerce Commission's report into local loop unbundling, an initial internal review of the Telecommunications Act 2001 was completed. At this time the Minister requested an additional and more detailed "implementation review" with a view to amending the Act in order to streamline the investigation and designation processes. A discussion document was released in November 2004, with the submission process concluding in March 2005. Draft papers on potential options were presented to the Minister at briefing sessions held in May 2005. Draft Cabinet papers seeking referral to Parliamentary Council Office for drafting of a Bill were presented to the Minister in July 2005. A legislative priority (Priority 4 - to be referred to Select Committee in 2005) is sought.

Providing advice on Telecommunications Service Obligation (TSO) competition.

Options for addressing complex issues in relation to the Kiwi Share Obligation/Technical Service Obligation (KSO/TSO) contestability were included in the Telecommunications Act 2001 review discussion document released in November 2004.

Radio Spectrum Policy Advice

This output involves policy advice on the management and allocation of the radio spectrum. In 2004/2005 the output included the following.

Reporting on the arrangements for the implementation of the rights at expiry policy and finalising offers for the renewal of Ultra High Frequency and Multipoint Distribution Services rights.

In December 2004, Cabinet approved a process to implement a rights at expiry policy, including timing and scope of case-by-case assessment, application of a price-setting formula and the settlement process. It was agreed that offers would not be prepared for the renewal of Multipoint Distribution Services rights. Offers to Ultra High Frequency (UHF) TV right holders were finalised in March 2005. A Cabinet report was submitted in March 2005 on the application of the policy for the renewal of AM and FM sound broadcasting rights.

Cost

(Figures are GST exclusive)

Major Budget Variances

The Supplementary Estimates changes mainly reflected a funding transfer from 2004/2005 to 2005/2006 for the Postal Access Review (-$80,000) and a technical adjustment for sub-leased office space (-$42,000), partially offset by a transfer from Vote: Energy - Administration of Gas and Electricity Regulations to meet cost pressures ($80,000) and a transfer from 2003/2004 for completion of the Digital Strategy document ($20,000).

The variance between 2004/2005 and 2003/2004 for actual expenses is mainly due to the transfer of Information Technology policy from Vote: Commerce to Vote: Communications. This was a technical change to better align appropriations with portfolio accountability.

Output Class > Management and Enforcement of the Radiocommunications Act 1989

Description

This output class provides services in relation to the management of the Radiocommunications Act 1989 by planning the allocation of radio spectrum, including international coordination and representation; issuing licences; providing licence registration services and access to the information held on the register of radio frequencies; assisting with the resolution of radio spectrum interference complaints; ensuring compliance with, and enforcement of, the statutory responsibilities of all spectrum users; and management of radio spectrum sales.

Quantity, Quality, Timeliness and Cost

(Performance standards and forecast volumes are in brackets where applicable.)

Quantity

Numbers actioned:

• 3,384 (2,500) new radio licence applications;
• 415 (250) new spectrum licences;
• 853 (1,200) instrument registrations; and
• 1,060 (1,000) interference investigations.

Volumes are demand driven. While the numbers forecast for spectrum licences and instruments registered 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.

Audits conducted:

• 273 (250) Electro Magnetic Compatibility (EMC) supplier compliance folder audits. (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.);
• 421 (400) EMC product audits;
• 3,201 (1,400) licence audits, including 294 (150) new licence audits; and
• 65 (60) site audits.

The higher than forecast number of EMC supplier compliance folder audits was due to an increase in the number of suppliers seeking registration.

The higher than forecast number of licence audits resulted from a number of complex⁹ site audits undertaken.

Quality

All licences will be issued in accordance with established ISO 9001 processes, and ISO 9001 certification will be retained following quality audits.

The quality target was met. An audit by Telarc, as at January 2005, confirmed that all licences were issued in accordance with established ISO 9001 processes. ISO 9001 certification was retained.

Timeliness

99% (95%) of correctly completed spectrum licence instruments were receipted and acknowledged within two (two) clear business days of receipt.

Documented interference complaints were responded to and remedial action commenced as follows:

• for public safety services, within two hours of being lodged in 98% (95%) of cases;
• for commercial radiocommunications, within one working day of being lodged in 97% (95%) of cases; and
• for radio and television broadcasting, within two working days of being lodged in 96% (90%) of cases.

Radio Spectrum Planning

This output involves advice on planning the allocation of radio spectrum, including international coordination and representation, and the management of radio spectrum sales. In 2004/2005 the output included the following.

Representing New Zealand's radiocommunications interests at the International Telecommunications Union (ITU) and other international forums.

The Ministry represented New Zealand's interests at forums run by the ITU Asia Pacific Telecommunity and the Institute of Electrical and Electronic Engineers. The focus was on forums concerned with spectrum management and new technologies.

Working with Australia to develop a strategy for an Asia-Pacific multi-lateral harmonisation agreement concerning Electro Magnetic Compatibility (EMC) and radiocommunications standards.

Initial discussions were held with the Australian Communications Authority and the Department of Communications Information Technology and the Arts (DCITA) on a Multi-lateral Mutual Recognition Arrangement for electronic products.

Introducing new "public park" and "self management" licensing opportunities, including Maritime HF and amateur services.

A review of the "public park" spectrum for short range devices was completed. This included the publication of the December 2004 report Review of Spectrum Allocation for Short Range Devices: Summary of Submissions and Conclusions' and the issuing of an updated General User Radio Licence for Short Range Devices on 10 December 2004. New "self management" arrangements for maritime high frequency services were introduced through an updated version of the General User Radio Licence for Maritime Purposes on 1 July 2005. Work was also undertaken to plan new general user licensing arrangements for the amateur service and satellite communications in the KU band.

Conducting radio spectrum management right sales as directed by the Government.

The sale of Waihi frequencies was completed in October 2004. At year end, the Ministry had issued offers for the renewal of UHFTV rights and was in the process of developing offers for AM/FM broadcasting.

Provision of engineering planning advice to support the development of radio spectrum policy advice and the management and enforcement of the Radiocommunications Act 1989.

Advice was provided on a range of issues, including allocation of 3.5 GHz broadband spectrum; international satellite coordination; short range devices, including ultrawideband (UWB) technologies; digital radio and television broadcasting; and technical coordination arrangements between right holders.

Cost

(Figures are GST exclusive)

Major Budget Variances

The variance between 2004/2005 and 2003/2004 for Revenue Other mainly reflects the introduction, on 1 July 2004, of a revised fees schedule designed to align revenue more closely to the cost structure of the Radio Spectrum Management Group post the business restructure of 2003/2004.

The variance between 2004/2005 and 2003/2004 for actual expenses mainly reflects work undertaken on the development of the Radio Spectrum Management IT strategy (SMART).