[News] Vodafone Warns ‘Mind the Rural Gap’ in Digital Dividend Design
Rural New Zealand may miss out on new high speed mobile services if the government does not compel successful bidders in the upcoming Digital Dividend auction to roll out in rural areas, says Vodafone.
In its submission to the Ministry of Business, Innovation and Employment on the 700MHz spectrum auction, Vodafone says that rural New Zealand holds the key to unlocking the government’s anticipated $2.4b economic benefit from the Digital Dividend.
Vodafone Head of Public Policy, Chris Abbott, says that the proposed auction rules don’t currently specify a level of investment in rural areas.
“There’s no question that the widest possible deployment of 4G, particularly in rural areas, will deliver the maximum economic benefit. But there is a risk that some network builders may be put off if the roll-out obligations are set too high.”
The Digital Dividend auction comprises the 700MHz spectrum which is being freed up as the country switches over from analogue to digital television. Abbott says this represents a huge opportunity to build on the Rural Broadband Initiative and drive further gains for rural New Zealand and therefore the whole economy.
“Vodafone is ambitious for New Zealand and we know that high speed broadband has a very positive impact on productivity, particularly in rural areas. We think it would be pretty straightforward to change the rules to ensure that rural New Zealanders enjoy the significant gains that access to 4G services delivers.”
Vodafone’s submission proposes three simple changes to the auction rules to ensure the benefits identified by the government will be delivered:
1. Increase the population coverage requirement to 75% of the population within 5 years;
2. Introduce a minimum coverage requirement for all regions; and
3. Require bidders of larger blocks of spectrum to roll out to 80% of zone 4 areas within 5 years, with a specific focus on the most rural areas
“By making these changes, we believe the benefits of 4G will be enjoyed by New Zealanders right across the country, not just those in the key urban centres,” says Abbott.
Vodafone is the first telecommunications company to roll out 4G in New Zealand, with parts of Auckland, Christchurch and Queenstown now live. Vodafone’s 4G network runs on the 1800MHz spectrum band and the company has a trial underway in Lake Brunner on the West Coast of the South Island using the 700MHz spectrum.
The Digital Dividend auction is for parcels of spectrum in the 700MHz band, which will enable telecommunications companies to deliver 4G services to rural areas economically.
