Māori set to receive quarter of key 5G spectrum band and $57m under Crown deal

Thursday, 3 February 2022

Three benefits of 5G technology (video first published in 2019).

Māori will receive a quarter of the 5G radio spectrum that is due to be distributed by the Government this year, as well as $57 million to help them capitalise on that opportunity, under a deal with the Crown.

The agreement appears to effectively – though not formally – draw a line under a Treaty of Waitangi claim for a share of the country’s valuable but invisible airwaves.

Communications Minister David Clark announced on Wednesday that “a historic agreement recognising Māori interests in radio spectrum” had been signed at Parliament.

He said the deal would see a new Māori Spectrum Entity receive 20 per cent of future national commercial spectrum allocations at no cost, as well as $57m of capital and operational funding to help it use that radio spectrum to build new businesses for the benefit of Māori and others.

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Another $17.8m of unspent funds in the Māori Digital Technology fund will also be transferred to the new entity.

That fund was offered to Māori as a $30m consolation prize after a former National government rejected their Waitangi Tribunal claim to a share of the radio spectrum freed up by the closure of analogue television in 2013, now used for 4G.

Antony Royal, chief executive of the Interim Māori Spectrum Commission, said that for technical reasons there would be some “unders and overs” in future spectrum allocations.

Deal clears way for longer-term allocation of 5G spectrum to Vodafone, Spark and 2degrees later this year.

It had been agreed that the new entity would be allocated 100 megahertz of the 400MHz of spectrum in the 3.5GHz band that is key for 5G networks, he said.

That quarter-share was confirmed by a spokesman for Clark.

The ministry plans to allocate the remaining 300MHz of the spectrum in November.

The Government made a temporary allocation of a total of 160MHz of that spectrum to Vodafone, Spark and 2degrees in 2020 to help them get started in launching 5G networks, along with a preliminary 50MHz allocation to Māori.

Royal did not rule out the Māori Spectrum Entity assigning some of the 3.5GHz spectrum it would receive to any of the three telcos so it could be used to support their 5G networks.

Māori previously provided a share of 3G spectrum to 2degrees to help it launch its mobile network in 2009, in return for a share of the company.

But Royal indicated the Māori Spectrum Entity had broader ambitions to use its future assets to promote Māori involvement in high-tech industries.

“Our aspirations really are about building capacity in the telecommunications sector.

2degrees chief executive Mark Aue has signalled the company’s desire to partner with the new Māori Spectrum Entity, as have Spark and Vodafone.

“Not only the ability for us to look at different technologies and how we might apply that to different businesses, but also to build up our training and skills.”

Radio spectrum could be used to support niche and regional businesses, he said.

“We are not going to go down the path of launching a new nationwide telco – it was hard enough the first time launching with 2degrees.

“What we are interested in is how do we use this technology, particularly with 5G services, to help support businesses, for example in the agri-tech sector?

“You could think about the use of 5G services to have live-streaming of video for the likes of organisations that want to do broadcasting and media creation.”

Royal said Māori had not given up any rights under their Treaty of Waitangi claim.

“What we've done is look forward, to try and build a collaboration between the Crown and Māori in coming to an arrangement we feel confident that we can build something on.

“The treaty [claim] will still stand as is. This isn’t a settlement. But I think we are all confident that we can move forward with the arrangements that are in place.’”

Telcos are understood to be pleased a deal has been reached that clears the way for the longer-term allocation of the 3.5GHz spectrum, and keen to partner with the Māori entity on opportunities.

Vodafone chief executive Jason Paris said it was “supportive of this positive move”.

“Creating long-term value for Māori and partnering with the Māori business sector is incredibly important for us, and we see this as another step in the right direction,” he said.

Spark spokeswoman Sam Smith said it was also pleased that the Government and iwi had come to an agreement recognising Māori interests.

The agreement paved the way for the ‘C-band’ spectrum auction to proceed in a “timely fashion”, she said.

Finalising the national allocation of that spectrum was critical to Spark’s accelerated roll-out of 5G, she said.

On the topic of possible collaboration with the Māori spectrum entity Smith said Spark was “always open to partnerships that can deliver better outcomes for our customers and for New Zealand”.

“We currently work alongside a number of Māori organisations and have made great progress supporting Te Puni Kōkiri’s Marae Digital Connectivity programme, rolling out world-class connectivity to marae around New Zealand,” she said.

2degrees chief executive Mark Aue said in a statement it was “delighted to see a formalised approach in place that will provide long-term, sustainable economic benefits for Māori and all of Aotearoa”.

“A partnership with Māori enabled 2degrees to enter the market back in 2009, and we look forward to continuing to work with the Māori Spectrum Working Group and the new Māori Spectrum Entity into the future,” he said.

“We’ve always believed Māori have an important role to play in the telco industry and with the formation of this agreement and new entity, there is a greater level of certainty for the industry as well as some exciting opportunities.”