5G regulation and law in New Zealand

Network operators have been rolling out 5G over the last two years, using the 3.5 GHz spectrum band – the first band to be allocated specifically for 5G services. 5G is now live in some areas, with plans for greater coverage. 

Network operators currently have short-term rights to the 3.5 GHz spectrum band. In October 2022, the government announced it intended to provide long-term access to the 3.5 GHz spectrum band through a direct allocation process, in order to accelerate availability to small towns. 

The details of this long-term allocation will continue to be worked through over the coming months as the government negotiates final contracts with the parties involved, with the arrangement remaining subject to satisfactory final terms. In the meantime, the short-term rights (which were set to expire on 31 October 2022) have been extended until 30 June 2023 to allow continued 5G roll-out and continuity for regional services.

Higher frequencies around 26 GHz are expected to be introduced in the future for 5G services.

For more information see MBIE’s news release, MBIE’s 5G information pack, and RSM’s 5G project page.

Network operators generally have higher charges for 5G broadband plans than 4G broadband plans, which cost around NZD 5-20 more per month.

Network operators currently do not have separate charges for 5G for mobile plans. Two network operators, Spark and Vodafone, specify that 5G is included in mobile plans at no extra cost for a limited time. The third, 2degrees, does not specify whether the inclusion of 5G is for a “limited time”.

Yes, all network operators are marketing 5G to businesses as a vehicle for innovation. 5G has been launched for industrial purposes in sectors including aviation, automotive, healthcare, gaming and streaming, and sports.

The Ministry of Business, Innovation & Employment (MBIE) is responsible for making frequency bands available for new uses, allocating rights to spectrum and managing spectrum use. Radio Spectrum Management (RSM) is a business unit within MBIE.

The 3.5 GHz band will be allocated for national 5G networks. It is proposed that the 3.3-3.4 GHz band is allocated for broadband services by way of long-term, regional or local rights. RSM consulted on this proposal in August 2021. Its discussion paper described regional broadband and private networks as possible uses for the 3.3 GHz band.

The government has also recognised Māori interests in spectrum, with a Māori Spectrum Working Group established by Māori in May 2019 to lead this work with the government. In February 2022 the government signed an agreement with the Māori Spectrum Working Group ensuring Māori will receive spectrum in the 3.5 GHz band. For more information see the government’s media release and the Māori Spectrum Agreement.

Airports and stadiums have access via 5G networks managed by network operators.

In December 2019, the government approved the allocation of short-term rights to an unused portion of 3.5 GHz spectrum through auction. In May 2020, the auction was cancelled due to the Covid-19 pandemic. Instead, a direct allocation process was undertaken under which the following offers for short-term early access rights to spectrum were made: 

*less any discount for returned spectrum in the 3.5GHz band

For more information, see RSM’s 5G project page.

Long-term access to the 3.5 GHZ band will be provided through a direct allocation process. The details of this process is still being worked out as the Government negotiates final contracts with the parties involved.

RSM is also planning the high band spectrum (26 GHz and 28 GHz) for 5G.

MBIE is working with interested parties on technical and regulatory issues relating to 5G.

In 2019 RSM consulted on proposed rules and technical requirements for operating in the 3.5 GHz band. It indicated these proposed rules and associated technical arrangements would only come into effect when the new (long-term) management rights were created. The discussion paper for consultation covered rules of co-existence and process for change, proposed arrangements for synchronisation, proposed unwanted emission mask, and compatibility with adjacent frequency bands.

Long-term 3.5 GHz band spectrum rights were originally intended to be ready for use from November 2022. As of December 2022, it appears these are still being negotiated. 

The Covid-19 pandemic may have contributed to the delay. The May 2020 cabinet paper seeking agreement to cancel the 5G auction for short-term spectrum rights noted:

… as a result of the Covid-19 pandemic the auction has been postponed. [REDACTED]

The short-term investment case in 5G tech has decreased due to supply chain issues and consumers having less disposable income to spend on expensive 5G handsets.
        
Telecommunications companies have had to focus their resources elsewhere. They have lost revenue (particularly international roaming charges) and have been investing in their 4G networks to manage increased demand. There is therefore less scope for companies to invest management attention and money on an auction.

MBIE is working with interested parties on technical and regulatory issues relating to 5G.

In October 2022, the government announced shared network infrastructure provider, Dense Air, will also have access to the 3.5 GHz spectrum band, helping network operators serve the hardest to reach parts of the country. Dense Air stated in a press release that it will work alongside Crown Infrastructure Partners and use spectrum in partnership with mobile service providers to help extend and densify networks:

Today, we’re proud to announce that Dense Air, the world’s leading provider of shared 4G and 5G neutral host radio access network infrastructure, will work alongside Crown Infrastructure Partners (CIP) to address mobile coverage challenges in under-served areas. CIP is the public entity established to manage the government of New Zealand’s investment in broadband infrastructure and seeks to facilitate the faster delivery of 4G and 5G services in rural communities across the country.

The government has agreed to progress discussions around the provision of 3.5 GHz spectrum to Dense Air, subject to the outcome of final negotiations. Dense Air plans to use this spectrum, in partnership with the mobile service providers, to help extend and densify networks across the country. Thanks to the government’s work program, more New Zealanders will be better served by 5G connections, ensuring access to the same quality of mobile services as those in New Zealand’s more populated areas.

For more information, see the government’s press release.

We are not aware of any 5G network sharing or spectrum sharing agreements currently in place.

To our knowledge, access rules to 5G networks have not been established yet.

In November 2018, the Government Communications Security Bureau (GCSB) declined an application by network operator Spark to use 5G equipment from Huawei because of a significant network security risk.

In July 2020, the Minister Responsible for the GCSB stated “New Zealand does not ban any telecommunications vendor … We do, however, have a well-established and independent regulatory process to ensure the security of our networks under the Telecommunications (Interception Capability and Security) Act 2013 (TICSA). TICSA has been in place since 2014, and works well. We are confident that New Zealand's telecommunications networks are secure, and that our regulatory model serves New Zealanders well." (as reported by RNZ).