Spark New Zealand hammered out a deal with the government for a direct allocation of 80MHz of 3.5GHz spectrum in return for earmarking additional funds for rural connectivity and agreeing to extend 5G services to more provincial towns.

In a statement, the operator explained the non-binding agreement gives it long-term spectrum rights in the band from 1 July 2023.

Spark committed to raising its funding to the Rural Connectivity Group by NZD24 million ($13.6 million) between 2023 and 2025, supporting the programme’s objectives to improve mobile coverage in rural areas and on state roads.

CEO Jolie Hodson stated the agreement gives Spark “the certainty we need to continue investing in the rollout of 5G” across the country, “while delivering further connectivity improvements” in rural areas.

“We look forward to working with government on the finalisation of the binding management rights deed, and on the future allocation of 600MHz and mm-wave, which will be particularly important for rural 5G coverage.”

In May 2020, the government allocated Spark and 2degrees 60MHz each in the 3.5GHz band, and 40MHz to Dense Air.