Ever since the earliest days, the government had recognised the power of radio as a communications medium, and the importance of maintaining absolute control of the means of transmission. This resulted in the Post and Telegraph Department, (later the New Zealand Post Office) owning and exercising complete control over the base radio equipment.

The police, having seen the benefits of 2 way radio in the large centres, wanted to expand the network to cover the rest of the country. This necessitated prolonged discussion between Police, Post Office and Treasury, in order to allow the police to expand the network independently of Post Office control.

In 1954, an agreement was reached. The Post Office would continue to own all the base stations, but would provide and rent them to the Police, in order to meet their operational needs. The Police would own all mobile equipment, and would be responsible for day to day maintenance.

This agreement allowed the steady expansion of the radio network to cover provincial towns as well as the major cities.