Dense Air, Spark and 2degrees get 5G Spectrum in New Zealand

Radio Spectrum Management (RSM) is a business unit within the Ministry of Business, Innovation and Employment (MBIE) in New Zealand.

On its website, RSM announced that In May 2020, the commercial auction for early access to the 3.5 GHz band designed for 5G was cancelled. Instead, a direct allocation process will be undertaken. Offers will be made of 40 MHz to Dense Air, 60 MHz to Spark, and 60 MHz to 2degrees.

In December 2019 the Government approved the allocation, via auction, of short-term rights to an unused portion of the 3.5 GHz band (3590 – 3750 MHz). These rights were to be allocated as national management rights for a term beginning mid-2020 until 31 October 2022.

Total Telecom provides additional details on this:

New Zealand’s 5G spectrum auction was initially scheduled for February this year, but the coronavirus outbreak forced the process to be delayed until the end of May.

With this deadline approaching, however, the government has made the decision to ditch the auction process, and instead simply allocate the 3.5 GHz spectrum. Telcos are being offered spectrum at the low fixed price of NZ$250,000 per 10 MHz of bandwidth.

Incumbent Spark has announced that it will receive 60 MHz of spectrum, with 2degrees also receiving the same amount. Dense Air has been allocated 40 MHz.

Rival Vodafone has seemingly not been allocated any spectrum, since the operator has already launched 5G using existing frequencies.

On its website, Spark said:

Spark today welcomed the announcement of the direct allocation process of 5G spectrum, with the Company to be offered management rights to 60 MHz of 3.5 GHz (or C Band) spectrum.

Spark CEO Jolie Hodson said the allocation enables a significant investment in 5G infrastructure across the country over the coming year, which will play a critical role in New Zealand’s response to and recovery from Covid-19.

“Over time 5G will fundamentally transform how we work, learn and connect as a country and act as a catalyst for innovation with emerging technologies such as robotics, artificial intelligence, augmented and virtual reality and the Internet of Things (IoT),” said Hodson. 

Work done for Spark by NERA Economic Consulting estimates that the rollout of 5G in New Zealand could add between $5.7 billion and $8.9 billion per year to the New Zealand economy over the next 10 years.

“Our recovery from Covid-19 is a long game, and it has never been more important to improve our productivity as a country and ensure we are well positioned to adapt to new ways of working. And in a world where physical distancing will remain critical for some time, technologies that connect people virtually have a fundamental role to play in our economic recovery,” continued Hodson.

“Securing 3.5GHz spectrum was critical for the rollout of a full suite of 5G services, so we would like to acknowledge the Government for facilitating the allocation, which will enable us to proceed with our planned 5G roll out at pace. 

“We plan to switch on 5G sites in a number of major centres and regions across the North and South islands over the next year. To maintain this momentum, we are keen to work with Government to accelerate the timeline for the longer-term spectrum auction, which is currently scheduled for November 2022.”

Spark will announce further details about its roll out plans in due course.

On its website, Dense Air said:

Dense Air is a provider of small cell services with spectrum assets in New Zealand. In April it loaned Vodafone its 2.6GHz spectrum for three months.

Related Posts:

• Operator Watch Blog - New Zealand: New age of 5G

New Zealand: New age of 5G

There are three main mobile operators in New Zealand they serve a relatively small population of approximately 4.8 million. All three of them own and operate their own network of towers.

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Vodafone is the market leader with 2.55 million subscribers (41% on contract) and claims to cover 98.5% of the population using their extensive  2G, 3G, 4G/LTE network.  In 2019 Vodafone sold its NZ unit to local Infratil, an investment company that owns airports, electricity generators and retailers, renewable energy and a public transport businesses. It will maintain the network under the Vodafone brand.


It has a good overall network in 4G, 3G and 2G at a range of prices. It's 4G network is good, with fast coverage in all urban areas, many towns and some rural areas.
                                 
Vodafone (working with Nokia) will flick the switch on its 5G network in December and it wants New Zealanders to know this isn't some futuristic, space-aged technology far removed from the present. They will offer services in four cities using a 40MHz slice of 3.5GHz spectrum which they says they have warehoused for "many years."  They are aiming to have at least 100 cellsites upgraded by December when they switch on the 5G network for customers to access and are also upgrading 400 existing 4G mobile sites to become 4.5G.

In a 5G ad campaign that launched nationwide on Sunday night, Vodafone pulls at the heartstrings with the story of an elderly man who takes his dog to the vet:



Spark the second largest operator with coverage over 97% of the population using their 3G and 4G network. Spark's network provides superior coverage (especially 4G in rural and suburban areas). Their number of subscribers: 2.46m (49% on contract).

It has a good nationwide coverage, but no fall back to 2G. Spark has the largest 4G network of all 3 networks in New Zealand, with universal 4G coverage in nearly every populated area, as well as many touristed areas and national parks. 4.5G (LTE Advanced Pro) is now available in many urban centres and rural areas on compatible devices.

2degrees is a relative newcomer, they claim coverage of 98.5% of the population (which includes areas where customers roam onto Vodafone's network). Its 4G network has less coverage in comparison to its competitors, and reception can be worse in rural areas particually in the South Island. However they have good coverage in urban areas including all cities, most towns and many rural areas in the North Island. Their number of subscribers: 1.41m (31% on contract).

2degrees closed down its entire 2G GSM/GPRS/EDGE network in March 2018. The provider's 3G network (including roaming on Vodafone's 3G network) now provides coverage of 98.5% of New Zealand’s population. They are also switching on 4G in the 900 MHz frequency band previouly used by the 2G network. That is helping improve their 4G coverage in rural areas as well as adding more capacity in urban areas.

Due to 2degrees's poor network coverage in comparison to its competitors, WiFi calling is available on compatible devices, meaning that you can use your call and text allowances over a WiFi network, whether you are in New Zealand or overseas. 

Both Spark and 2degrees have long standing relationships with Huawei which has been banned by the government from participating in 5G on security grounds and neither has given and definite indication of when it will launch 5G services. Spark is also waiting on the 3.5GHz auction.