Background
11. A Ministry discussion paper published in May 1998, DP 11: A Spectrum Allocation Strategy, identified a draft auction schedule in which auctioning spectrum for digital television services and VHF-FM sound broadcasting would follow the 2 GHz auction. The 2 GHz auction has now been completed and is now being reviewed so as to improve the implementation of future auctions.
12. Before any spectrum for digital television or VHF-FM sound broadcasting can be allocated, it is necessary to finalise policies on the expiry of spectrum rights, including existing rights used for these two services. The Government has also not yet confirmed reservations of spectrum for non-commercial VHF-FM sound broadcasting. The policies and technical details of licences for digital television services and VHF-FM sound broadcasting are expected to be finalised by early 2002. The auction of spectrum for WLL, LMDS and cellular services could therefore take place before the allocation of the broadcasting spectrum is ready to commence.
13. The Ministry considers that management rights can be created (where necessary) in the WLL, LMDS and 800-900 MHz frequency bands, and then allocated by auction. Allocating management rights for these bands is considered to be better than allocating either apparatus or spectrum licences because it enables services to be developed without the need for ongoing Ministry intervention. Allocating management rights also provides maximum certainty for potential users of the bands. It is also consistent with previous allocations of spectrum for these types of uses.
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