This output class provides policy advice in respect of telecommunications, postal services, broadcasting and the management of radio spectrum. Outputs in this output class include:

policy advice on services and activities regulated under the Telecommunications Act 2001 and development of regulations where required;
policy advice on the need for further regulation of the letter post market;
contributing to the provisions of broadband infrastructure and services by providing advice on the Kiwi Share and telecommunications services obligations;
representing New Zealand's interests at international forums relating to telecommunications and postal services;
policy advice on the management of radio spectrum, in particular the policy and legislative regime for the allocation of rights in relation to spectrum, and the allocation of specific spectrum in commercial demand; and
development of a policy framework which defines the role of government in relation to the advent of digital television.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation outcomes. The contribution of the respective outputs is described in italics below.

The Resources and Networks Branch is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

Generic quantity, quality and timeliness performance measures for all policy advice, Ministerial services and briefings supplied by the Ministry of Economic Development are detailed in Quality Standards for Policy Advice and Ministerial Servicing.

2002/2003 Performance Measures and Standards

Policy Advice

Policy advice will be delivered in accordance with the terms of the work programme agreed 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;
Implement regulations and any policy decisions under the Telecommunications Act 2001 within the timeframes set by Government;
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; and
Report to the Minister with recommendations on initiatives to facilitate the contestable provision of telecommunications services in remote areas, by 31 December 2002.

Access to telecommunications services is a basic requirement for economic growth and participation in economic activity. These outputs are designed to ensure the telecommunications regulatory framework delivers cost-efficient, timely, and innovative telecommunications services on an ongoing, fair and equitable basis to all existing and potential users.

Contestable provision of telecommunications services in remote areas is one way of lowering the barriers to entry by other service providers, thereby encouraging diversity and lower prices for broadband communications services throughout New Zealand.

Postal Services

Report to the Minister on proposed amendments to the regime for postal services, by 31 March 2003.
Renegotiate the Deed of Understanding with New Zealand Post, by 30 June 2003.

These outputs aim to ensure that the letter post regulatory framework promotes an efficient letter post market that delivers cost efficient, ongoing, timely and equitable letter post services to all users.

International Negotiations in Telecommunications

Represent New Zealand's interests at the 2002 International Telecommunications Union plenipotentiary conference, by 31 December 2002.
Make a significant ongoing contribution to the development and representation of New Zealand's negotiating positions in the World Trade Organisation, the International Telecommunications Union, the Universal Postal Union and APEC Tel.

Effective representation of New Zealand's interests will contribute to ensuring that:

agreements are consistent with New Zealand's telecommunications services and postal services regulatory regimes; and
development of international regulations and frameworks for telecommunications and radio spectrum take New Zealand's perspective into account.

Promoting trade in telecommunications services, telecommunications equipment, and postal services will contribute to more open and competitive markets, including through mutual recognition agreements and terminal dues arrangements.

Radio Spectrum

Allocate spectrum suitable for FM broadcasting, by 30 June 2003;
Allocate spectrum suitable for WLL and LMDS (Wireless Local Loop and Local MultiPoint Distribution Services), by 31 December 2002;
Report to the Minister on a programme of spectrum allocation for the period 2003-2006, by 31 March 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;
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; and
Report to Ministers on the role of government in relation to digital television, by 31 March 2003.

Efficient allocation of radio spectrum rights ensures that service providers have access to a key input in the provision of communications infrastructure and services, which provide an important base for innovation, business growth and enhanced economic participation.

The development of digital television will create opportunities to provide enhanced broadcasting and communications services, contributing to innovation, business growth and greater economic participation. Clarifying the role of government in managing the transition from analogue to digital broadcasting will allow broadcasters to plan and invest with more certainty in terms of spectrum acquisition, business partnerships, and the development of new infrastructure.

Costs: Vote Communications, Output Class D1

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	2,339	2,278	2,278
Third Party Revenue	41	41	41
Expenses	2,380	2,319	2,319
Surplus/(Deficit)	-	-	-

Output Class D2 - Management and Enforcement of the Radiocommunications Act 1989

Description

This output class provides radio frequency spectrum management services. Outputs in this output class include:

licensing and compliance management of radio frequency spectrum;
registration of radio spectrum rights; and
management of radio spectrum auctions.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation and growth outcomes.

These outputs will enable the Ministry to manage the radio spectrum efficiently by:

ensuring acceptable levels of interference through the provision of accurate licence assignment and effective interference investigation and resolution, thus giving business confidence in their assigned rights;
ensuring the allocation methodology for radio spectrum interests and licenses is recognised internationally and domestically as being rigorous, effective and timely, giving business confidence in their allocated rights or licence; and
forecasting and planning spectrum usage to encourage infrastructure investment in communications networks.

The Radio Spectrum Management Group of the Operations Branch is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

Where appropriate, comparative figures for the previous year are shown in parentheses.

2002/2003 Performance Measures and Standards

Quantity

Expected numbers:

8,000 (4,000) radio licences;
300 (200) spectrum licences;
2,300 (2,700) interference investigations;
3,000 management right and spectrum licence instruments registered; and
12 Electro Magnetic Compatibility (EMC) supplier compliance folder audits 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.)

Quality

For all licences issued in accordance with established ISO 9001 processes, ISO 9001 certification is retained, following quality audits.

An internal audit of spectrum rights registered confirms full compliance (100%) with statutory requirements.

Timeliness

90% (90%) of correctly completed licence applications received will be processed within timeframes¹³ specified within the letter of acknowledgement.

80% (80%) of management rights and licence instruments will be processed within five (5) clear business days of receipt.

Costs: Vote Communications, Output Class D2

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	-	-	-
Third Party Revenue	12,629	12,629	12,709
Expenses	11,349	11,349	10,989
Surplus/(Deficit)	1,280	1,280	1,720

¹³The time estimated is dependent on a range of factors including engineering complexity and policy development associated with an application.

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Printed: 26/11/2009