It is clear from the Ministry of Economic Development's reports and meetings on the allocation of the 'Digital Dividend' spectrum, that the 700MHz band is seen as being for mobile broadband services. The sole, but insufficient, justification for this position appears to be that "...other countries are generally following this course."

This submission takes a contrary view, arguing that the band be retained exclusively for fixed rural broadband services. In the context of the Rural Broadband Initiative (RBI) process, we recommend the concept of allocating the spectrum to an infrastructure provider on principles similar to fibre networks under the Ultra Fast Broadband (UFB) process.  The Crown must retain the management rights to the spectrum to ensure beneficial use to rural New Zealand without the need for regulation.

Given the pre-disposition of the Ministry of Economic Development to allocating the 700MHz band to two or three of the existing mobile operators, and the pressure that those mobile operators are likely to bring to ensure that they get exclusive access to that spectrum, it is likely that the principles of this submission will hold no sway. In that event, an alternative strategy is proposed.

This is that the proceeds of the auctioning of the 'digital dividend' spectrum, be used to extend fibre-to-the-farm connectivity deeper in to rural New Zealand. If the spectrum earns $1Bn, then rural fibre to the farm services would be subsidised to that amount. That 'dividend' would go a long way to eliminating the growing urban/rural digital divide.

 Download the full report here.