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• Calculation of Offer Prices

• Radio Spectrum

• Archive

• Radio Spectrum Policy

• Rights at Expiry

The offer price for a set of licences corresponding to one of the seven UHF-TV nationwide sets is $961,451 (plus GST) for a 10 year licence period. The offered sets will reflect the engineering assessment and exclude sites not currently utilised for UHF-TV broadcasting.

The offer price for UHF-TV spectrum licences originally allocated on an individual basis will be calculated using a price-setting formula, subject to population weighted averages by comparable transmitter location, and a minimum charge. This calculation involves two distinct steps, calculation of $/capita for each averaging group based on original licences and application of $/capita to licences offered for renewal.

Calculation of $/capita

1. Each individual licence originally sold by auction or tender is assigned to an "averaging group" based on its transmitter location and target population. (A list of averaging groups will be available once finalised.)
2. The price-setting formula is applied to each original licence to calculate an unadjusted renewal offer price, using a growth factor (z) 2.60%, scale factor (R) 11%, renewal term 10 years, and regional population adjustment appropriate for the averaging group.
3. The population coverage of each original licence is calculated based on 2001 census information according to its original technical parameters.
4. A weighted average dollars-per-capita is calculated for each averaging group, based on the renewal offer price and population coverage of each original licence in the averaging group.

Application of $/capita

1. Each replacement individual licence to be offered for renewal is assigned to an averaging group based on its transmitter location and target population.
2. The population coverage of each replacement licence is calculated based on 2001 census information, according to its new technical parameters.
3. The renewal offer price for each replacement licence is the greater of the product of the average dollars-per-capita for the averaging group and its population coverage, and the minimum charge.

The minimum charge will be calculated in a similar manner to auction reserve prices. The minimum charge will also apply where no auction or tender data exists due to allocation under the low value licence policy [31 kB PDF].

This page will be updated from time to time. If you have any queries regarding the project or wish to receive notice of updates please contact the Ministry via email to radiospectrum@med.govt.nz.