5G deal a unique opportunity, say Māori negotiators

Friday, 13 December 2019

A deal under which Māori will be allocated a significant slice of 5G radio spectrum marks a change for the past, says New Zealand Māori Council executive director Matthew Tukaki.

'What we have achieved today is a fantastic outcome for Maori in a way that has never been done before,' he said.

Māori will get a slice of 5G spectrum as part of a Government decision to pave the way for the speedier deployment of the new generation of mobile technology.

Communications Minister Kris Faafoi said 210 megahertz of 'unused' radio spectrum in the 3.5GHz band that is currently best supported by 5G smartphone makers would be made available to mobile network operators and Māori by the middle of next year.

The decision is likely to pave the way for Spark to join rival Vodafone in providing a 5G mobile service to customers by mid-next year, and for Vodafone to increase the performance of its 5G mobile network, which it launched with 100 cellsites in the main centres and Queenstown on Tuesday.

**READ MORE:

* Vodafone turns on 5G mobile service in main centres, with $10 surcharge coming

* Spark hopes spectrum change will allow it to launch 5G network next year

* Tough calls ahead on 5G mobile roll-out**

Telcos will be able to bid for 160MHz of the 'early release' spectrum, with 50MHz set aside for Māori.

The rights would only apply until the end of October 2022, by which time the spectrum band is due to be repackaged and put back out to auction.

But industry sources said it was assumed Māori would also receive 50MHz of the long-term rights in the band.

Tukaki said the deal was 'historic' and Māori had never had an opportunity quite like this before.

'If we are going to break poverty among our people, then it is very much going to be about lifting our young people in particular into the high-wage growth side of the economy.

'That also means looking at broadcasting more as an opportunity – more content and moving the traditional iwi radio away from having to turn a dial, to producing content online.'

It is understood four companies will vie to get a slice of the 160MHz of spectrum that will be auctioned; Spark, Vodafone, 2degrees and British-based Dense Air which promotes itself as a carrier-neutral wholesale provider of mobile infrastructure.

Faafoi said the spectrum allocation decision would allow the telecommunications industry to move forward faster with the deployment of 5G services, which offered significantly improved data speeds and capacity for both conventional mobile and fixed wireless broadband.

'Progressing with 5G will ensure New Zealand keeps pace with global developments, give us world-class connectivity, and provide a platform for exciting new applications which can improve future livelihoods and ways of life,' he said in a statement.

Successive governments have so far chosen not to formally recognise a Treaty of Waitangi claim by Māori to radio spectrum.

In 2013, the former National government provided Māori with a $30 million Māori 'ICT development fund' in lieu of 4G spectrum.

But Faafoi said the 50MHz short-term allocation would 'act as a stepping-stone for Māori and the Crown to reach an enduring agreement which recognises Māori interests'.

Those interests related to 'digital jobs, healthcare, the rural economy and connectivity, education, broadcasting, and the revitalisation of Te Reo', he said.

A support programme would be developed to build Māori capability in spectrum-related industries, he said.

The other short-term rights to the unused 3.5GHz spectrum would be auctioned with a limit on how much could be bought by any one network operator.

Spark said in a statement to the NZX that that auction would take place in March.

'This is a positive development and we intend to participate in the auction,' it said.

'Access to sufficient spectrum in the 3.5GHz band will enable Spark to bring true mass-market 5G services to more New Zealanders as soon as possible.'

Vodafone NZ chief executive Jason Paris tweeted the decision was 'great for the industry and as anticipated'.

2degrees has said it also plans to invest in 5G and spokesman Mat Bolland said the announcement paved the way for it to 'prepare for an announcement next year on our plans'.

'This allocation will be a bit of a taster – access to a limited amount of spectrum from mid-2020 will give the industry the opportunity to introduce early services and test a range of applications so we can work out what 5G will really mean for New Zealanders, while we wait for more spectrum to become available in 2022.'

The process for allocating the longer-term rights, from November 2022, would be developed over the next two years, Faafoi said.

The Māori Spectrum Working Group is overseeing the Māori interest in spectrum.

Its members include the New Zealand Māori Council, the Wellington Māori Language Board, Haami Piripi, Te Huarahi Tika Trust and Māori industry representatives Antony Royal and Robyn Kamira.

After 3G spectrum was released, Māori aligned their spectrum interests with 2degrees, effectively assisting it to establish itself as a competitor to Spark and Vodafone.

But industry sources said it could not be assumed the same would apply with respect to 5G.

'This is new and exciting territory,' Tukaki said. 'Who knows what the future might hold when it comes to Māori interests.'

'This is also a brand new way of negotiating with the Crown.'

Numerous parties within the Government as well as within Māori had needed to reach a common position, he said.

'Quite often you run the risk of Māori not getting anything done because it is more a question of how do you manage it.

'It is not just us. The Greens had to agree, NZ First had to agree and Labour had to agree.

'But look what we have done – we have achieved it in a relatively short space of time,' he said.