Telecom NZ to build 'Next G' type 3G network

Stuart Corner
Wednesday, 15 October 2008 05:06

Business IT - Networking

Telecom New Zealand has announced plans to follow Telstra's lead and build a nation-wide 3G WCDMA network operating at 850Hz.

It intends to provide coverage to approximately 97 percent of the places where New Zealanders live and work by mid 2009, which it almost a year ahead of the schedule announced by its rival Vodafone New Zealand.

In Jun 2007, Vodafone NZ announced that it had selected Nokia Siemens Networks to build out a 3G WCDMA network operating at 900HMz. This will expand coverage of its 3G at 2100MHz, launched  in August 2005 from 63 percent of the population to 97 percent with scheduled completion date of April 2010.

Telecom NZ's 850MHz network will have a phased launch from November with the start of inbound roaming services, as well as a pilot programme "focused on ensuring a best-in-class customer experience." There will be a full launch of services by June 2009.

Telecom NZ presently operates a CDMA network and has given no indication of plans to close it down. However it has been a significant handicap in the competition with Vodafone NZ because of the much more limited range of handsets available than for GSM and 3G WCDMA and the fact that roaming options overseas are much more limited. (and of course it also missed out on revenue from the many Australians visiting New Zealand). The closure of Telstra's CDMA network made these problems particularly acute.

Users on the new network wil be able to roam, in Australia onto Telstra's Next G network. Telecom NZ CEO, Paul Reynolds, said: "With this technology Telecom will provide customers with global roaming superior to that of our competitors: our handsets will work on more than 430 networks in over 170 destinations worldwide for voice and texting, and over 110 destinations for internet data. Telecom customers visiting Australia will get service and coverage second to- none, unmatched by any other New Zealand provider."

Telecom says it has '"committed to deploying HSPA+ (Evolved High Speed Packet Access)," in the new network but has given no indication as to what speeds wil be available.  Telstra has said its network will support a, theoretical, maximum downstream speed of 21Mbps by the end of this year and 42Mbps next year. Vodafone NZ presently supports HSDPA at 7.2Mbps.

Telecom NZ says it will invest $NZ574 in the network rollout over the next two years. It has not yet named its chosen vendor(s). Overall, Telecom now anticipates spending $2.4 billion on capital expenditure over the next two financial years. This includes the investment already being made in fixed line broadband services and a next generation network.

Its CDMA network was built and managed by Lucent Technologies, which has since merged with Alcatel to which Telecom NZ had largely outsourced management of its fixed network. The result today is that Telecom NZ has outsourced to the one company, Alcatel-Lucent, responsibility for its network to an extent that is probably greater than for any other carrier in the world.

Prior to its CDMA network, Telecom NZ operated a digital AMPS network. The technology was once considered a rival to GSM and Australia seriously considered its implementation but wisely chose GSM. Telecom NZ's digital AMPS network closed on 31 March 2007.