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Output Expense > Policy Advice – Communications

Description

This output expense provides strategic and technical policy advice on information technology,
the Government's Digital Strategy, telecommunications (including broadband), postal services,
and the allocation and management of the radio spectrum.

The ouputs included in this output expense contributed to the following business environment outcomes: Harnessing ICTs; Managing our natural resources; and Boosting the productivity of Auckland.

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 expense for 2006/07:

Information Technology Policy

This output relates to providing policy advice on information technology, including international technical developments and regulatory frameworks relevant to the Government's broadband and industry development strategies. In 2006/07, the output included the following:

Implementation of the Government's 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 and led by the Ministry of Economic Development. The Digital Strategy, which was launched in June 2005, is now bedding in and has moved from being a policy document to core implementation phase. Announcements were made regarding successful applications to the first round of the two major grant funds – the Community Partnership Fund and the Broadband Challenge Fund.

Supporting the enactment of the Unsolicited Electronic Messages Bill

• The Unsolicited Electronic Messages legislation was enacted in March 2007, and its implementation will be reviewed in March 2008.

Telecommunications and Postal Policy Advice

This output relates to providing policy advice on services and activities under the Telecommunications Act 2001 (amended in 2006) 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 2006/07, the output included the following:

Monitoring and enhancing the telecommunications regulatory regime

• Completing a stocktake review of the telecommunications sector.
  • The stocktake review, which commenced in 2005/06, was completed. Following Cabinet decisions in May 2006, drafting instructions were prepared to develop an Amendment Bill to implement the findings of the two reviews.
  • The Cabinet papers recommended further major reform of the sector, including: introduction of local loop unbundling; unconstrained bitstream service and a "naked" DSL service; accounting separation; a more streamlined regulatory process; and a strategic review role for the Commerce Commission. The papers also requested the Select Committee (supported by the Ministry) consider the options of structural and operational separation of Telecom NZ, and recommended a number of future reviews into aspects of the sector.
• Managing the implementation review of the Telecommunications Act 2001.
  • The Ministry supported the passage of both the Telecommunications Amendment Bill and the Telecommunications Omnibus Bill through the legislative process to enactment.
• Evaluating the effectiveness of the operation of the cellular market.
  • Advice was provided to the Minister, with a decision made to reject the Telecommunications Commissioner's report in favour of commercial arrangements. The Ministry will continue to evaluate the effectiveness of the operation of the cellular market.

Monitoring and maintaining the ICT regulatory regime to ensure it keeps pace with technological change

• A number of briefings on the details of technological developments likely to significantly influence the regulatory and economic growth environments were provided to the Minister of Communications.
• The Ministry collected and published statistics from Teligen Data measuring and comparing
  the performance of New Zealand's ICT sector with other OECD countries.

Providing advice on the Telecommunications Service Obligation (TSO)

• A review of the TSO was started, with an interim report submitted to Cabinet in December seeking agreement to the process and framework for the TSO review. A discussion document was released in August 2007.

Radio Spectrum Policy Advice

This output relates to providing policy advice on the management and allocation of the radio spectrum. In 2006/07, the output included the following:

Providing advice on spectrum allocations for new radio spectrum technologies, including wireless broadband, digital television and digital radio broadcasting technologies

• Advice was provided on spectrum for new broadband wireless access technologies and services, including the completion of a Cabinet stocktake paper on future spectrum allocation opportunities; planning for the 2.3/2.5 GHz auction, the creation of new public park licences for broadband wireless technologies; and the wrapping up of the initial allocation round and planning for the second allocation round of 3.5 GHz spectrum area licences.

Developing and implementing a programme of future spectrum allocations, including allocations to promote shared access and self-management techniques

• The Ministry provided advice on future allocations for broadband wireless access, including development of the managed spectrum park concept. The Ministry also prepared a discussion paper on security of tenure issues for radio licence holders, including an associated report back to Cabinet. Advice was also provided on government satellite interests and the NZLSAT filings.

Major Budget Variances

The Supplementary Estimates changes reflected the implementation of the Government's telecommunications policy framework ($1.050 million), hosting of the 34th APEC Telecommunications and Information Working Group ($0.255 million) and costs associated with the recruitment of the Telecommunications Commissioner.

The variance between 2006/07 and 2005/06 for actual expenses is also mainly due to the above items.

Output Expense > Management and Enforcement of the Radiocommunications Act 1989

Description

This output expense provides services in relation to the management of the Radiocommunications Act 1989 by establishing technical arrangements for 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.

This output expense contributed to the following business environment outcomes: Managing our natural resources; and Harnessing ICTs.

Quantity, Quality, Timeliness and Cost

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

Quantity

Number actioned:

• 3,272 (3,500) new radio licence applications;
• 280 (300) new spectrum licences;
• 782 (1,800) modifications to radio licences;
• 3,297 (1,000) instrument registrations; and
• 800 (1,000) interference investigations.

Volumes are demand driven.

The decrease in modifications to radio licences is due to the Radio Spectrum Management Group enforcing a policy that transmitters must not be unlicensed, including situations where radio networks may be in a transition phase. Previously, the transition was dealt with by way of licence modifications; however, this compromised the technical integrity of the Register of Radio Frequencies and has been discontinued. The new policy has resulted in an overall decline in modifications to fixed licences.

The large variance in instrument registrations is the direct result of Telecom NZ Ltd and Vodafone NZ Ltd undertaking substantial in-house projects to assess all cellular transmitter assets against records in the Register of Radio Frequencies. This resulted in both companies needing to submit a substantial number of instruments to bring their licences into line with the actual number and location of transmitters.

The reduction in interference investigations is due to the increasing take-up of digital satellite broadcasting services. This is expected to continue with the availability of FreeView.

Audits conducted:

• 819 (650) product standard compliance audits (all electrical and electronic products supplied in New Zealand are required to meet standards protecting the radio spectrum, with suppliers subject to audit of the documentation and product labelling confirming compliance); and
• 1,781 (1,750) licence audits.

The higher than forecast number of product standard compliance audits resulted from the focus on auditing and the removal from supply of decorative lighting products that did not meet New Zealand compliance requirements.

Quality

• All (all) licences granted and registered, along with licence and product audits, were made in accordance with ISO 9001, and ISO certification was retained following quality audits.

Timeliness

• 100% (100%) of all correctly completed paid and engineered planned licences were
  granted/registered with an overall mean turnaround of 5 (5) working days of receipt.

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

• for public safety services, within 2 (2) hours of being lodged in 98% (95%) of cases;
• for commercial radiocommunications, within 1 (1) working day of being lodged in 98% (95%) of cases; and
• for radio and television broadcasting, within 2 (2) working days of being lodged in 99% (90%) of cases.

Radio Spectrum Planning

This output relates to providing advice on technical arrangements for the management and allocation of radio spectrum. In 2006/07, the output included the following:

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

• The Ministry participated in ITU, Asia Pacific Telecommunity, and Institute of Electrical and Electronic Engineers fora on new wireless technologies and made preparations for the ITU 2006 Plenipotentiary and 2007 World Radio Conferences. The Ministry also represented New Zealand at the ITU 2006 Plenipotentiary Conference.

Conducting sales of radio spectrum rights as directed by the Government

• The Ministry completed offers and technical planning for renewal of AM/FM licences, completed the first allocation round for 3.5 GHz area licences and provided advice on the second allocation round. Advice was also provided on renewal arrangements for 800/900 MHz cellular rights as well as developing arrangements for the sale of local commercial FM licences.

Designing regulatory and technical frameworks to support the introduction of new radio spectrum technologies

• Technical planning was undertaken for new BWA allocations, digital terrestrial TV licences, digital land mobile radio services, digital PPDR mobile communications and studio to transmitter links. Advice was also provided on outcomes of a management right coordination workshop.

Provision of engineering advice to support the development and implementation of radio spectrum policy advice

• Technical planning support was provided for all of the activities under the output Radio Spectrum Policy Advice.

Provision of engineering advice to support the management and enforcement of the Radiocommunications Act 1989

• Technical planning support was provided for all of the activities under the output Management and Enforcement of the Radiocommunications Act 1989.

Major Budget Variances

No material variances occurred between years or within the Supplementary Estimates process.