Announcement

GENERAL: SPK: Spark welcomes mobile spectrum rights renewal 12:22p.m. 
SPK  
15/03/2019 12:22  
GENERAL  
NOT PRICE SENSITIVE  
REL: 1222 HRS Spark New Zealand Limited  
 
GENERAL: SPK: Spark welcomes mobile spectrum rights renewal  
 
MARKET RELEASE  
15 March 2019  
 
Spark New Zealand welcomes Government announcement on renewal of existing  
mobile spectrum rights  
 
Spark New Zealand welcomes the Government's announcement that, as expected,  
it will renew all the rights held by mobile network operators in the 2100 MHz  
spectrum band and most of the rights held by mobile network operators 1800  
MHz spectrum band. The Government is holding aside a portion of existing  
rights in the 1800 MHz spectrum band for potential use by emergency services.  
 
The current rights Spark and other mobile network operators hold in these  
spectrum bands are due to expire in 2021. The renewal rights offered by the  
Government will be for a 20-year term out to 2041.  
 
Spark General Manager of Regulatory Affairs John Wesley-Smith said the  
Government has offered Spark renewal rights for 40 MHz in the 1800 MHz band  
(currently Spark holds the rights to 50 MHz in this band) and for 30 MHz in  
the 2100 MHz band (equal to Spark's full current allocation in this band).  
 
Renewal rights to this spectrum are being offered by the Government at a  
price of $720,000 per MHz, which would represent a total outlay of $50.4  
million excl. GST for Spark. Companies accepting renewal offers will have the  
option to make payment around the time of renewal in 2021, or to pay by equal  
yearly instalments over the following five years (with market interest rates  
applying). Spark intends to accept its renewal offers but has yet to  
determine the payment approach it intends to adopt.  
 
"We are disappointed that the full allocation of Spark's spectrum rights will  
not be renewed and we will need to accommodate this in our network planning.  
However, the reduction of 1800 MHz spectrum is not unexpected and we are  
confident we can continue to provide the same level of high quality mobile  
services to our customers in the future as we do today.  
 
"We also accept that the creation of a spectrum band that could be used by  
emergency services could serve New Zealanders well" said Mr Wesley-Smith.  
 
Mr Wesley-Smith emphasised that the 1800 and 2100 MHz band spectrum rights  
are separate from and different to the spectrum rights being considered for  
future 5G services.  
 
Aside from 5G spectrum, the next renewal of mobile spectrum rights - for the  
2600 MHz spectrum band - is not expected to occur until late 2028 when the  
current rights for that spectrum band expire.  
 
ENDS  
 
For media queries, please contact:  
Andrew Pirie  
Corporate Relations Lead  
+64 (0) 27 555 0275  
 
For investor relations queries, please contact:  
Dean Werder  
Finance Lead Partner - Product and Performance  
+64 (0) 27 259 7176  
End CA:00332023 For:SPK Type:GENERAL Time:2019-03-15 12:22:25