Key Issues
Spectrum Availability
7. The 100-108 MHz band will support up to eight new frequencies in any one coverage area. If repeaters are required to provide supplementary coverage in areas of poor coverage, then the band will support between four and eight new networks. The need for repeaters will depend on the geographical features in coverage areas and the coverage requirements of the new programmes.
8. For example, hilly terrain in Wellington means that if reasonably comprehensive coverage is desired, the upper FM band will support a maximum of four new programmes. At the other end of the scale is Auckland, where the band could be expected to support eight new programmes with reasonably comprehensive coverage. This is possible because most of Auckland can be reached with one transmitter per programme, whereas in Wellington at least two transmitters per programme would be required.
9. In other areas, the maximum number of new programmes will lie between these extremes, depending on the coverage objectives of each programme. In addition to Wellington, other key areas where higher coverage demands may affect the number of programmes are the Far North, Wanganui, Palmerston North and Levin. Small pockets of Christchurch, Dunedin and Taupo may also be affected.
10. Based on the above factors, there is sufficient spectrum within the 100-108 MHz band to provide the equivalent of four new programmes with comprehensive nation-wide coverage. This is the maximum number of new nation-wide networks that can be created without compromising the ability of listeners to enjoy interference-free reception of the programme of their choice.
11. Setting aside sufficient spectrum for four new nation-wide programmes will mean that in some areas, such as Auckland, there will be spectrum left over in the 100-108 MHz band that could be used for new "local" programmes. The amount of spectrum left over in any one coverage area will depend on the coverage requirements of the four new programmes. In essence, there is a trade-off between the number of new programmes that can be provided in any one area and the coverage of those programmes (i.e. greater coverage will mean that fewer new programmes can be provided in areas where repeaters are needed).
Alternative Options for the Four Programmes
12. The 100-108 MHz band could be used to provide a range of programmes. As the band will only support four nation-wide networks, choices must be made to ensure that the spectrum is used in a manner that creates the greatest benefit for all New Zealanders. The key choices are:
- whether to use the spectrum to provide additional commercial programmes or to provide additional non-commercial programmes, or a balance of both; and
- if non-commercial programmes are to be provided, which programmes should be given priority.
13. The alternative programme options are outlined below.
Commercial Licences
14. The 100-108 MHz band could be used to provide new commercial programmes. There are currently around 400 licences in the lower FM band allocated to commercial broadcasters. Overall (including AM licences), commercial licences account for approximately two thirds of all existing licence allocations. There have been no new FM licences available for commercial acquisition in the main centres for some time.
15. Government policy is to allocate spectrum for commercial use through auction. Commercial licences are granted for a fixed period of 20 years after which time they revert back to the Crown. Existing commercial licences begin to expire in 2011. The Government is currently considering options for reallocating these licences when they expire.
Non-Commercial Reservations
16. As noted above, the Government has, from time to time, reserved spectrum for the purpose of achieving its public policy objectives and helping to meet its obligations under the Treaty of Waitangi. The non-commercial programmes for which spectrum could be reserved are outlined below.
National Radio
17. National Radio currently operates over a wide coverage area mainly in the AM broadcast bands3. Radio New Zealand has a desire to convert National Radio services to FM broadcasting. The Government has previously agreed that National Radio should be able to migrate to spectrum within the 100-108 MHz band, subject to a business case being made.
18. The current AM coverage of National Radio is unlikely to be quickly replicated by a network of FM stations. It is expected, however, that over time some of the AM spectrum currently used for National Radio will become available for other uses.
Concert FM
19. Concert FM currently operates a network of 34 stations on frequencies dispersed throughout the lower FM band (88-100 MHz). Radio New Zealand has expressed a general desire to bundle the Concert FM system within a dedicated block of frequencies in the upper FM band. This approach may also provide for the expansion of Concert FM to areas currently without service.
20. It is anticipated that should Concert FM move to the upper FM band, the frequencies that it is currently using in the lower band would become available for alternative uses.
Youth Radio
21. The Government is currently working through its policy objectives with respect to broadcasting for youth. It is unclear at this stage whether FM spectrum will be required for a youth radio network. It is expected that spectrum can be made available for this purpose if necessary.
Maori Radio
22. The Crown has an obligation under the Treaty of Waitangi to promote Maori language and culture. This has been recognised in the past through the reservation of spectrum and the provision of funding for iwi-based broadcasting. Approximately 32 AM licences and 74 FM licences are currently reserved for Maori radio. Approximately 50% of these licences are currently being used (70% of FM licences are used).
23. In general, there are no unused, reserved licences currently available in the main population centres. In addition, the unused licences cannot be combined to provide a national programme. A key question to be addressed is whether the Crown's obligation to promote Maori language and culture would be enhanced if spectrum within the 100-108 MHz band were to be set aside for a national Maori radio network.
Pacific Island Radio
24. A Pacific Island radio station currently exists on a reserved AM frequency in Auckland (Radio 531 PI). Several Access stations also carry programming for Pacific Island people (for example, Samoan Capital Radio in Wellington).
25. The Government has signalled that it wishes to extend Pacific Island radio to major centres with significant Pacific peoples populations, including Auckland, Hamilton, Tokoroa, Wellington, and Christchurch. To assist with this, funding to NZ On Air was increased by $280,000 in 2000/2001 and out-years to enable it to fund the establishment and maintenance of a Pacific Island radio network.
Access and Community Radio
26. Access radio allows small interest groups to share a single broadcasting licence. Community radio includes services such as radio reading services for the visually impaired, and community specific broadcasting requirements, such as local radio services for Pacific Island and Asian communities.
27. Services such as these currently exist in most main population centres. Approximately eight AM licences and forty-six FM licences4 are currently reserved for access and community radio. Approximately 50% of these reservations are currently being used.
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