KEY POINTS:
Around $500 million of investment in the mobile industry will soon be put to the test as both Telecom and Vodafone gear up to open new mobile phone networks.
Vodafone's new network, which operates in the 900MHz spectrum band, is already live in many parts of the country for those with compatible handsets before its official launch next month.
Telecom is spending $300 million on a new network that will see it adopt similar GSM cellular technology to that used by Vodafone but keep its existing CDMA network running until at least 2012.
Telecom plans to have voice and 3G mobile broadband coverage offering download speeds of up to 14.4 megabits per second in Auckland, Wellington and Christchurch in November.
Eventually the new network will cover the same footprint as Telecom's existing CDMA network, reaching 97 per cent of the population. But Telecom hasn't given a timeframe on when it will extend the new network outside the main centres.
"We are well down the track with all of our resource consents and site acquisitions," said Telecom's head of mobile, Martin Butler.
"We'll roll out further from there similar to what we did with CDMA [mobile broadband]."
The network-building reflects a global trend towards use of lower radio frequencies which offer better mobile coverage with fewer cell towers.
Vodafone's head of corporate affairs, Tom Chignell., said that could prove a boon for mobile users in rural areas, where the low-frequency radio technology is particularly useful for extending coverage.
"Vodafone expects to deploy 900MHz 3G technology to fulfil its promise to the Government last year to deliver 3G mobile broadband to 19 regional centres," he said.
For Vodafone the investment buys better coverage for its subscribers, who will be able to seamlessly pass between the mobile operator's 900MHz and older 2100MHz networks if they have the appropriate mobile handsets or data cards.
While Vodafone New Zealand has been an early convert to using 900MHz spectrum, Chignell said he was confident a wide range of devices would be available that could switch between the two networks.
Five Nokia handsets are already on sale here that support both networks and Vodafone would have compatible Mobile Connect cards available from next month.
Telecom's network plans are more significant as they reflect a shift in not only technology but strategy. Butler said the choice of technology was down to the availability of 850MHz radio spectrum which was lying dormant since Telecom switched off its 025 network last March and the fact that phones were increasingly featuring "quad-band" chipsets which allowed for use at different radio frequencies, including 850MHz.
As well as improving options for Telecom customers overseas and visitors to New Zealand when it comes to mobile roaming, the new network also gives Telecom access to a wider range of mobile handsets and services such as mobile TV and video calling.
Butler would not confirm which would be available in November.
While the new networks come from the existing incumbents, the mobile industry is likely to open up further this year with the debut of New Zealand Communications, which has secured network interconnection deals with other carriers, a mobile roaming deal with Vodafone and financial backing from London and Hong Kong investors.
NETWORK PUSH
TELECOM
* $300 million network investment that will initially result in 3G coverage in main centres.
* Will adopt the more popular GSM system and therefore gain access to a wider range of mobile devices and mobile services.
* Will keep existing CDMA network running until at least 2012.
VODAFONE
* 900MHz network already live in many parts of the country and can be accessed by Vodafone customers with phones capable of operating at that frequency.
* Will extend 3G mobile broadband coverage to 19 regional centres.
* Allows Vodafone to cover wider areas with fewer cell towers.
