BACKGROUND

3. New Zealand's FM broadcasting band lies between 88 and 108 MHz. The lower part of the band (88-100 MHz) is currently used for a mix of commercial and non-commercial radio broadcasting services. Over the past five years, the upper part of the band (100-108 MHz) has been cleared of land mobile services. This is in accordance with international practice in which most countries designate this spectrum for FM broadcasting. At present, a licensing prohibition prevents any new broadcasting services from being established in the upper FM band until an overall policy has been developed².

4. Spectrum in the lower FM band is managed under the property-rights based regime of the Radiocommunications Act 1989. Licence-holders hold tradable, fixed-term rights to broadcast at specific locations granted by the Crown as holder of the over-arching, nation-wide management right. Licences used for commercial broadcasting are generally purchased through auction or tender.

5. From time to time, the Government has reserved spectrum for non-commercial broadcasting services, such as National Radio, Concert FM and Access radio, and for the promotion of Maori language and culture. The purpose of making these reservations is to promote a range of public policy objectives. Conditions are generally attached to non-commercial licences that restrict the licence holder's ability to trade.

6. In December 1998, the Ministry of Commerce (now the Ministry of Economic Development) published a discussion paper, which sought to identify general issues associated with the 88-108 MHz band. As part of that process, a number of submissions were received expressing views on how the 100-108 MHz band should be used. This document takes the next step by drawing on those earlier views and providing an opportunity to comment on specific proposals for using the 100-108 MHz band.