After canceling a planned spectrum auction last May, the Government of New Zealand is assigning 20-year licenses to operate 5G networks in the 3.5 GHz band to major telcos, according to Minister for the Digital Economy and Communications David Clark. Radio New Zealand reported that three mobile network operators — Spark, Vodafone and 2degrees — will get licenses, plus a shared network provider and the Māori, the indigenous Polynesian people of mainland New Zealand.
Why It’s Important: The free spectrum comes with a catch. Licensees will be required to make further investment in rural connectivity including through the mobile network operators’ jointly owned Rural Connectivity Group, which has been partnering with the government for a number of years to improve rural connectivity.
“The government is working with New Zealand’s major telecommunications network operators to accelerate the roll-out of 5G services across New Zealand and to improve rural connectivity,” Clark said. “As a result of a new agreement, many more New Zealanders will gain access to the speed, capacity and reliability of 5G services.” Shared network infrastructure provider, Dense Air, will also 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.
Catch Up: The government provided short-term early access to this spectrum in 2020, to enable the country’s 5G roll-out to begin in the 3.5 GHz spectrum band – the first band to be allocated specifically for high-speed 5G services. In May, the government allocated 3.5 GHz spectrum after the COVID-19 pandemic forced the cancellation of a planned 5G auction, according to a report by BuddeComm.
“With the expiration of short-term rights on the horizon, long-term rights must be allocated,” Clark said. “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.” The agreement complements the government’s investment of $107 million for rural connectivity, he added.
Māori, the indigenous Polynesian people of mainland New Zealand, will also receive spectrum in this band, according to an agreement that the government signed with the Māori Spectrum Working Group in February this year.
By J. Sharpe Smith, Inside Towers Technology Editor
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