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6. Government reviews 3G spectrum cap

A 15 MHz spectrum cap is currently in place over spectrum suitable for 3G cellular services, imposed via management rights deeds entered into between the Crown and successful bidders in Auction 3. The purpose of the spectrum cap is to facilitate the development of competition in the provision of 3G mobile services in New Zealand.

The 3G spectrum caps had an initial period of three years to May 2004, but the Crown reserved the right to extend the caps for a further period. The Associate Minister of Communications, David Cunliffe, has announced government's decision to extend the spectrum cap to May 2007 in order to facilitate competition in the future market for 3G mobile telephony services.

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