Vote: Communications
Key
Departmental Output Classes
D1 Policy Advice: Communications
D2 Management and Enforcement of the Radio Communications Act
Non-Departmental Activities
(See Statement of Non-Departmental Expenditure and Revenue by Vote for more details)
Output Class O1 - Maintenance of Standards in Broadcasting
Output Class O2 - Telecommunications Commissioner
Other Expense - Contribution to International Telecommunications Organisations
Output Class D1 - Policy Advice: Communications
Description
This output class provides policy advice in respect of telecommunications, postal services, broadcasting and the management of the radio spectrum. Outputs in this class are:
- policy advice on the regulation, operation, development and effectiveness of these sectors;
- representation of New Zealand's international interests in these sectors;
- advice on the operations of the Broadcasting Standards Authority (BSA), and Te Reo Whakapuaki Irirangi (TRWI) (known as Te Mangai Paho);
- advice on the exercise of Ministerial statutory powers; and
- monitoring and enforcement of compliance with telecommunications, broadcasting and postal services legislation, and the establishment of tradeable radio spectrum rights.
A special focus for 2000/2001 was to implement Government decisions arising from the recommendations of the Ministerial Inquiry into Telecommunications as outlined in the performance measures below.
Quantity, Quality, Timeliness and Cost
Details of performance relating to performance measures for generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the Statement of Objectives and Statement of Service Performance.
Specific deliverables relating to the agreed work programme are as follows:
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister.
Key deliverables in the work programme for the year included:
Implementing Government decisions arising from the recommendations of the Ministerial Inquiry into Telecommunications, including development of detailed legislation and regulations as required, by 30 June 2001.
The Ministerial Inquiry into Telecommunications submitted its final report to the Minister on 29 September 2000. The Ministry supported the Minister in the Ministerial Inquiry through briefings on a range of issues, and preparation of draft Cabinet papers for the Minister's consideration. Government decisions on the Inquiry's recommendations were announced on 22 December 2000. Subsequently, the Ministry has developed draft legislation, with the Telecommunications Bill being under consideration by the Commerce Committee at 30 June 2001.
Monitoring and providing advice on the performance of the Crown's broadcasting entities (i.e. Te Mangai Paho and Broadcasting Standards Authority) by 30 June 2001.
Advice and reports on the financial and non-financial performance of the Broadcasting Standards Authority were provided to the Minister throughout the year.
Responsibility for Te Mangai Paho was transferred from the Ministry of Economic Development to Te Puni Kōkiri from 1 July 2000.
Establishing procedures for determining prior to future radio spectrum auctions, whether the spectrum concerned should be used for the promotion of Māori language and culture by 31 December 2000.
The deadline for this work was extended to 30 June 2001 with the agreement of the Minister. Draft procedures were developed by 30 June. The Ministry is awaiting comment from interested parties before these are finalised. No further spectrum auctions are planned until early 2002.
Projects Not Included in the 2000/2001 Departmental Forecast Report
Subject to legal proceedings, commence an auction of 2GHz frequencies by 10 July 2000.
The auction of 2GHz frequencies commenced in July 2000 and was successfully completed in February 2001. This auction was the largest and most complex auction the Ministry has handled to date.
A 3G block was set aside from the auction for purchase by a Māori spectrum trust to promote Māori participation in the telecommunications and information technology sectors. This is now available for transfer to the trust. A 3G spectrum cap was implemented.
Crown Entity Monitoring
All advice was provided to the Minister on statutory appointments to Crown entity boards as positions for renewal or appointment fall due, within agreed timelines.
Monitoring and reporting to the Minister on the financial and non-financial performance of Crown entities was provided as reflected through:
- the Statement of Intent - Annually
- the Memorandum of Understanding (MoU) - Annually
- the Purchase Agreement - Annually
- management reports to the Minister - Quarterly
- the Annual Report - Annually
The following Crown entity was monitored and reported on:
- Broadcasting Standards Authority.
Cost
(Figures are GST exclusive)
| | 2001
Main Estimates | 2001
Supple-
mentary Estimates | 2001
Actual | 2000
Actual |
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 2,665 | 2,665 | 2,562 | 3,088 |
| Other | 41 | 52 | 55 | 43 |
| Total Revenue | 2,706 | 2,717 | 2,617 | 3,131 |
| Expenses: | | | | |
| Annual appropriations | 2,706 | 2,717 | 2,617 | 3,131 |
| Other appropriations | - | - | - | - |
| Total Expenses | 2,706 | 2,717 | 2,617 | 3,131 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| | $000 |
|---|
| Application fees | 6 |
| Cost recovery | 37 |
| Miscellaneous | 12 |
| Total Revenue Other | 55 |
Major Budget Variances
The Supplementary Estimates adjustments provided for a transfer of funds to Vote: Commerce D1 - Policy Advice: Business and Competition for the establishment of a Business Compliance Cost Panel (-$155,000); a transfer to Vote: Government Superannuation Fund to meet the Government Superannuation Fund New Zealand (GSFNZ) establishment costs (-$90,000); an expense transfer from 1999/2000 to 2000/2001 relating to the Telecommunications Inquiry ($412,000) and a transfer to the Ministry of Māori Affairs to reflect a more integrated and consistent approach to the promotion of Māori Language and Culture (-$167,000).
Output Class D2 - Management and Enforcement of the Radio Communications Act 1989
Description
This output class provides radio frequency spectrum management services. Outputs in this output class include:
- licensing and compliance management of the radio frequency;
- radio frequency allocation;
- provision of new technologies and services; and
- registration of Radio Spectrum rights.
Quantity, Quality, Timeliness and Cost
(Performance standards are in brackets where applicable.)
Licensing and Compliance Management of Radio Frequency Spectrum18
Quantity
Numbers issued or assigned:
- 14,012 (up to 5,000) Radio licences (the actual figure includes transfers between two licensees of 1,600 licences and 4,500 licence amendments);
- 2,517 (200) Spectrum licences (the actual figure includes 2,289 new licences resulting from the 2 GHz auction);
- 1,572 (1,000) Declarations of Conformity;
- 2,347 (up to 2,000) Interference resolution following complaint; and
- 1,472 (up to 1,000) Compliance and enforcement actions.
Quality
Broadcasting licences issued conform to engineering standards as specified by the International Telecommunications Union-Radio (ITU-R).
An independent external audit was completed for 10% of broadcasting licenses issued during 1999-2000, in March 2001.
Administrative licences issued conform to the established internal engineering processes.
An independent external audit, conducted by a recognised member of IPENZ, was completed for 10% (10%) of broadcasting licenses issued during 1999-2000, in March 2001. 99% (95%) of the licences audited met the standard prescribed.
Declarations of Conformity conformed to technical standards as prescribed in the New Zealand Gazette Notice "Radiocommunications Interference Notice 1993" including amendments 1 through 4. An independent external audit (conducted by a recognised member of IPENZ) was completed for 50 (50) declarations. 96% (95%) of declarations audited met the standard prescribed.
Interference investigations are completed satisfactorily as shown in the monthly random follow-up surveys. 88.3% (90%) of surveyed clients' feedback is within the range (1) "excellent" to (2) "very good" in the client survey results.9
Timeliness
Correctly completed licence applications received will be processed within timeframes specified in the letter of acknowledgement. (The time estimated is dependent on a range of factors including engineering complexity and policy development associated with an application).
85% (90%10) of applications received were completed within the specified timeframe.
98.5% (90%) of Declarations of Conformity were processed within two working days of receipt.
Interference complaints were responded to and remedial action proposed for:
- 100% (90%) of Safety services, within two hours of being lodged;
- 99.5% (90%) of Radiocommunications, within one working day of being lodged;
- 97.8% (90%) of Broadcasting, within two working days of being lodged; and
- 91.2% (90%) of Interference investigations, completed within 30 working days of being lodged.
Radio Frequency Allocation
Quantity and Timeliness
Conduct auctions of spectrum as directed by Government. To date one auction is forecast to be undertaken during 2000/2001.
2 GHz auction commenced on 10 July 2000 and bidding was completed on 21 February 2001.
Quality
2 GHz auction project proceeds in accordance with the auction project plan.
All criteria set in the auction project plan were met. Changes were documented and approved, and the auction completed. The post-auction review was completed in June 2001. Accepted recommendations will be implemented prior to the next auction, which is yet to be scheduled.
Provision of New Technologies and Services
Quantity and Timeliness
Spectrum allocation plans for new technologies and their completion dates:
Bands for Fixed Wireless Access (FWA):
- FWA planning and audit between 3.4-3.6 GHz completed by May 2001 (by June 2001);
- FWA/LMDS planning and audit above 20 GHz completed by June 2001 (by June 2001);
- Bands for itinerant linking (TVOB) by June 2001. Engineering Consideration Document process was completed in September 2000. An industry group is currently studying the results; and
- Bands between 400-449 MHz. plan completed and audited by July 2000 (by June 2001).
Spectrum impact reviews:
- Review of the impact of WRC 2000 on New Zealand services document was delivered to the New Zealand Study Group of International Telecommunication Union (Radio Sector) in September 2000 (by June 2001); and
- Future spectrum usage: strategies and technical issues for the period 2001-2006 Study completed by June 2001 and report prepared (by June 2001). Formal publication is scheduled for September 2001.
Quality
External technical audit by external auditor confirmed that the engineering analysis within documents was sound.
Registration of Radio Spectrum Rights
Quantity
Transactions for the Register of Radio Frequencies were:
- 6,35211 (up to 3,000) instruments registered; and
- 332 (up to 900) file searches (demand driven).
Quality
Internal audit confirmed full compliance with statutory requirements.
Information requests meet applicants' requirements. The top 100 Radio Spectrum Management clients were to be surveyed. 90% of feedback was intended to be within the range (4) "met expectations" to (5) "fully met expectations".12 This was a new standard for 2000/2001. A survey is scheduled for the second quarter of 2001/2002. However, no complaints were lodged.
Timeliness
- 95.3% (80%) of instruments were processed within five working days of receipt; and
- 95.8% (90%) of file searches were completed within two working days of receipt.
Cost
(Figures are GST exclusive)
| | 2001
Main Estimates | 2001
Supple-
mentary Estimates | 2001
Actual | 2000
Actual |
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | - | - | - | - |
| Other | 12,625 | 12,706 | 12,474 | 11,546 |
| Total Revenue | 12,625 | 12,706 | 12,474 | 11,546 |
| Expenses: | | | | |
| Annual appropriations | 11,345 | 11,426 | 10,968 | 11,384 |
| Other appropriations | - | - | - | - |
| Total Expenses | 11,345 | 11,426 | 10,968 | 11,384 |
| Net Surplus/(Deficit) | 1,280 | 1,280 | 1,506 | 162 |
Sources of Revenue Other
| | $000 |
|---|
| RTRW fees | 4,363 |
| RAL telecommunications | 646 |
| RAL - radio and mobile | 5,958 |
| Other fees | 632 |
| Total fees | 11,599 |
| Inter-departmental revenue | 792 |
| Net gain on sale of fixed assets | 6 |
| Miscellaneous | 77 |
| | 12,474 |
Major Budget Variances
Changes between 1999/2000 and 2000/2001 also reflect the completion of the Integrated Spectrum Management System (the PRISMs project) in 1999/2000.
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