New Zealand accelerates 5G rollout

New Zealand Minister for the Digital Economy and Communications David Clark has revealed that the federal government is working with New Zealand’s major mobile network operators (MNOs) in order to accelerate the rollout of 5G services across the country and improve rural connectivity. As a result of a new agreement, Clark said, many more New Zealanders are set to gain access to the speed, capacity and reliability of 5G services.

Radio spectrum underpins all wireless technology — including the rollout of 5G mobile services. Access to spectrum has previously been sold to telecommunications providers via an auction, but the new agreement will bypass that process in favour of a direct allocation method.

Speaking last month, Clark said, “Network operators have been launching 5G over the last two years, using the 3.5 GHz spectrum band — the first band to be allocated specifically for high-speed 5G services. The government provided short-term early access to this spectrum in 2020, to enable the country’s 5G rollout to begin.

“With the expiry of short-term rights on the horizon, long-term rights must be allocated.”

Access to short-term 3.5 GHz rights was set to expire at the end of October; these rights have now been extended from 1 November until 30 June 2023, to allow network operators to continue their rollout of 5G and to provide continuity for regional services. Subject to contract negotiations, the direct allocation of spectrum will be provided in exchange for investment from all parties involved and will see the market value of this spectrum be delivered through:

• faster availability of 5G to small towns across New Zealand, leveraging the existing capability and networks of major mobile network operators and infrastructure providers; and
• further investment in rural connectivity including through the MNOs’ jointly owned Rural Connectivity Group, which has been partnering with government for a number of years to improve rural connectivity.
   

“As part of the new agreement, our three major mobile network operators — Spark, 2degrees and Vodafone — will be required to increase the pace of the 5G rollout to small towns across New Zealand. There is also an expectation they will continue efforts to improve rural connectivity,” Clark said.

Shared network infrastructure provider Dense Air will have access to the 3.5 GHz spectrum band as part of the deal, helping network operators serve the hardest to reach parts of the country. Māori will also receive spectrum in this band, as per the agreement that the Crown signed with the Māori Spectrum Working Group in February this year.

The details of this long-term allocation will continue to be worked through over the coming months as the Crown negotiates final contracts with the parties involved, with the arrangement remaining subject to satisfactory final terms. Management rights are ordinarily provided for a 20-year term.

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