Big things begin in backblocks

By PETER GRIFFIN

A major new telecommunications competitor is in the offing as Government-owned Broadcast Communications readies its broadband wireless technology for nationwide coverage.

The broadcasting arm of TVNZ is upgrading its wireless network in a $5 million deal with Ericsson as part of a plan to offer wholesale high-speed internet and voice telecommunications services.

BCL will initially focus on providing broadband in rural areas, where it has identified a market of 20,000 dairy farmers and sharemilkers who have slow and unreliable dial-up links to the web.

Its technical director, Keith Ladyman, said Ericsson engineers were already working to add the IP (internet protocol) element to the network. Completion was expected by the end of January.

That will mean services ranging from basic internet browsing through to high-quality video conferencing and voice over internet protocol telephone calls will eventually be available in the regions.

BCL is testing fixed wireless technology in south Taranaki and Southland.

BCL managing director Geoff Lawson said the company would remain a wholesaler, selling its services to retailers such as Telecom and TelstraClear.

While Telecom was an obvious partner for broadband in other regions, it was not the only player BCL would link up with.

BCL will now make bids in conjunction with other parties to provide broadband to other regions as part of the Government's PROBE project, which divides the country into 14 regions with the aim of providing broadband to 2700 schools.

Florida wireless technology specialist Airspan will provide BCL with the technology users need to access the service.

In rural areas, about 70 per cent of users with the Airspan receivers will be able to receive wireless internet directly from BCL's towers. Repeaters will be used to reach a further 20 per cent, and satellite may be used to reach those in the remotest places.

BCL has been discussing with Australia's Optus obtaining capacity on one of its satellites.

Displaying an access package that will probably be available to subscribers, Airspan's regional director, Grant Stepa, said a standard package including a receiver, power supply and wireless access device allowing two voice channels and a high-speed internet connection was selling elsewhere for about US$1500.

The BCL development is being mirrored across the Tasman by wireless broadband provider Unwired, which also has Ericsson and Airspan as technology partners.

Lawson said BCL's focus would not initially extend to cities, where competition among broadband providers was reasonably strong.

"The dairy industry alone has identified potential productivity gains of $300 million in one year through the use of applications and tools made available to farmers over the internet."

Extending the access network nationwide could cost from $50 million to $100 million.

Airspan

Broadcast Communications

Unwired Australia