Wireless telecommunications provider Woosh claims government regulations may prevent it rolling out new technology that would see digital television broadcast on the internet.
The company has secured a deal with Sky to use part of its radio spectrum to broadcast wireless internet television.
This will complement those sections of spectrum that Woosh already owns. However, that could be hindered by government plans to put the rights to the spectrum up for auction at the end of 2010.
Woosh Chairman Rod Inglis says they will not roll out unless they are assured of retaining rights to the spectrum.
Meanwhile, the Ministry of Economic Development says submissions close this Friday on a discussion paper on the future use of the spectrum. Cabinet decided in 2004 that there would be no automatic renewal of rights.