Waitangi claim the latest obstacle for 5G plans

Just as Spark sees a way around the GCSB's Huawei ban, another obstacle is emerging to its goal of launching a 5G mobile network by July 1, 2020 — a Treaty claim on spectrum that seems far from resolved.

Last week, chief executive Simon Moutter told analysts his company could hit that date, on time and on budget, by working with other technology suppliers, including US company Cisco and Sweden's Ericsson.

But the Spark boss also also flagged another concern at the company's interim results briefing: the Government needed to get a wriggle on and outline terms and dates for the 5G spectrum auction that must take place before his company (and Vodafone and 2degrees) can upgrade their 4G networks to newer, faster fifth generation — or 5G — technology.

Moutter said that for Spark to be sure of hitting its timetable for 5G, the Government needed to confirm auction details as soon as possible; ideally, he wanted an auction by June.

He pointed out that in Australia, a 5G spectrum auction was done and dusted last year. Optus has the first stages of its 5G upgrade already underway. The Spark boss said New Zealand, and its economy, was in danger of falling behind.

But the news for the telco was decidedly mixed this week.

“The first allocation of 5G spectrum will be the 3.5 GHz band, with national rights to this portion of the spectrum expected to be auctioned early in 2020,” Communications Minister Kris Faafoi said on Thursday.

“We are on track and keeping pace with other countries: with the spectrum being progressively allocated, companies can start rolling out 5G from 2020.”

That was behind Spark's timetable, but at least things were in train, but then Faafoi added: “While spectrum allocations occur, we will concurrently be working with Ma¯ori to address the radio spectrum-related Treaty of Waitangi issues. Until this work has been completed, we will not be able to provide details of the 3.5 GHz spectrum that will be available for auction.”

A spokeswoman for Faafoi's office said a spectrum claim — WAI 2224 — had been lodged with the Waitangi Tribunal but had yet to be formally considered.

In an earlier claim — WAI 776 — the tribunal agreed, in a majority decision, that Ma¯ori had a right to fair and equitable access to radio spectrum. That led, 19 years ago, to discounted 3G spectrum being allocated to the pan-iwi Te Huarahi Tika Trust whose commercial arm, Hautaki Ltd, traded the spectrum for a minority stake in the company that became 2degrees.

WAI 776 was lodged by Rangiaho Everton, who is now deceased. Her son, Graeme Everton, says WAI 776 ultimately proved a failure. The former Telecom radio spectrum technician turned entrepreneur said Hautaki could not afford to participate in rights issues by 2degrees' majority shareholder, US company Trilogy International Partners, and its stake was diluted before eventually being sold to pay debt.

Everton brought a new claim, the yet-to-be-heard WAI 2224. A bid for an urgent hearing was declined in 2013.

Everton said he wanted a more enduring solution that would involve telcos working closely with the Government to use spectrum to help foster Ma¯ori business and improve rural connectivity — which he sees as neglected in the major telco's plans.

Asked if this would involve an acknowledgement that Ma¯ori own 5G spectrum, a direct allocation of spectrum being allocated to WAI 2224 claimants or a solution that emerges from negotiation, he responded “the third one”.

Everton said the next step would be for Faafoi to approach him and other WAI 2224 claimants. Told of Moutter's push to get 5G auction details finalised by June, Everton's blunt response was “Holy crap!”

As things stand, he does not see that happening. Everton said he wanted Spark, Vodafone and 2degrees to approach him.

Moutter's goals were selfimposed, Everton said, adding: “These discussions shouldn't be rushed. It's more important to get it right.”

Everton said Moutter was “only interested in connecting rich boats in Auckland” — a reference to the Spark boss's ambition to have 5G ready for the 2021 America's Cup.

For Spark, spokesman Andrew Pirie took a diplomatic line, saying, “If the principal risk to timing is resolution of Treaty of Waitangi issues, then we encourage the Government to do all it can to resolve these issues with Ma¯ori as quickly as possible. While we acknowledge the rights of Ma¯ori as tangata whenua, Spark does not take a view on how these issues might be resolved — that is for the Crown and Ma¯ori to resolve the spirit of partnership.”

Pirie added, “While we were hoping this auction might have taken place later this year, we remain committed to launching commercial 5G services by mid2020 at the latest and rolling out 5G network capabilities as soon as the necessary spectrum becomes available.”

His rivals aren't in such a hurry. 2degrees chief executive Stewart Sherriff said, “It's one thing to drink the Kool-aid at Mobile World Congress in Barcelona [a major trade show] but on the ground back here in New Zealand, 2degrees is focused on making sure 5G is affordable, done properly and at the right time to really make a difference for businesses and consumers.”

Sherriff said New Zealand “should avoid a repeat of the move to 3G, when the industry built networks too soon and devices took a long time to arrive”. Although Samsung has just released the Galaxy S10, which supports 5G, Apple and others have yet to offer handsets that can be used with 5G networks, and may not do so until next year — and it will take longer for 5G support to filter down into mid- and low-price models.