WELLINGTON (WiMAX Day). The Ministry of Economic Development (MED) for New Zealand will follow through with its plan to auction 2.3 GHz spectrum in December 2007. Moreover, the MED also will auction licenses for 2.5 GHz spectrum in December to “ensure the availability of sufficient spectrum to facilitate competitive rollout of new services.” While the auctions will be held on the basis of technology neutrality, it is understood that both spectrum bands are aimed for use with WiMAX.

The MED announced in 2006 that it would auction 2.3 GHz spectrum in June 2007, but it was later changed to December to be held after the World Radio Conference (WRC07) meeting in November to take account of any decisions made during the conference that might effect 2.5 GHz spectrum, which is presently classified for use with IMT-2000 technologies. It is expected that WiMAX will be admitted to the IMT classification during this conference.

The MED discussion paper notes that a change in IMT classification “is expected to give a boost to the development and use of mobile WiMAX equipment in any of the bands identified for IMT-2000 including the 2.5 GHz band.”

The auction follows several months of controversy concerning the existing management rights to 2.3 GHz spectrum. Woosh Wireless, New Zealand Telecom and Sky TV already have licenses to 2.3 GHz that were allocated in 1990 and are set to expire in 2010. Woosh has rights to 16 MHz and also has the right to manage 16 MHz from SKY and NZT each. These companies claimed they have the right to automatically renew their management rights.

In its discussion paper, the MED notes that some of these companies may relinquish their rights to the 2.3 GHz spectrum before 2010, which will make it available for early use. Furthermore, “Any rights relinquished early may be lined up with lots at auction and auctioned at the same time. The Ministry would also seek to re-align any existing retained rights to match up with any future management rights acquired at auction where that would be desirable to facilitate continuity of service.”

The spectrum to be auctioned in the 2500 to 2690 MHz frequency is presently used for TV/video links outside of broadcast services, such as sporting events on a short-term basis. The MED intends that it will migrate current use of these frequencies, and have management rights available by January 2009.

It is expected that a total of 210 MHz of combined spectrum will be made available, which the MED believe “would allow sufficient spectrum to accommodate up to six nationwide providers of WiMAX.” MED also intend to provided for a “managed park” of spectrum of at least 30MHz, “for regional and rural service providers, including Maori (aboriginal) service providers.”

Spectrum will be allocated with management rights for up to 20 years, and the government will allow the spectrum to be traded. The government also will not restrict incumbent telecoms such as NZT and Vodafone from the auction, as these companies “may be best placed to make investments providing new services to consumers.”

The government is now making final consultations for the design and format of the auction, which it says will be “finalised and released at least one month prior to the auction.”