New wireless service to tackle Telecom head-on

By CHRIS BARTON IT editor

Walker Wireless says a new fast internet service will give residential customers a complete alternative to Telecom.

The first step is an internet-only service to be launched in Auckland by the end of next month, and Walker promises a new brand name, an advertising campaign and pricing that will "blow your socks off".

But the most significant addition will come toward the end of this year with the addition of voice capability, offering residential customers the option to switch off their Telecom account.

Managing director Rod Inglis said the company had also cemented its relationship with Vodafone New Zealand, making the mobile network provider a prime marketing and distribution channel for Walker's portable broadband service.

Vodafone retains an option to take an unspecified equity stake in Walker, and its network of Vodafone stores will sell Walker's palm-sized wireless modems.

Inglis said key competitive advantages of Walker's service, which uses technology from United States-based IP Wireless, were its portability and ease of installation - allowing users to take their fast internet connectivity to and from work and home.

Pricing plans would be very competitive and include metropolitan and national "roaming" options.

Asked whether Walker could compete if Telecom reduced broad-band prices, as signalled by chief executive Theresa Gattung earlier this year, Inglis said: "Bring it on."

He said Walker had almost finalised interconnect agreements with Telecom and, as well as untimed local calls, would be offering competitive national and international toll calls using voice over internet protocol. The technology, being employed by telcos all over the world, enables significantly cheaper voice traffic.

Vodafone began its relationship with Walker in October when it contributed $3 million to a $6 million trial of Walker's fast internet service to 400 Auckland customers.

After completion of the trial, Walker expanded the Auckland network using Vodafone cell towers for transmission. It is also converting trial customers to paying customers, starting at $58 a month for 128kbps access - $7 a month less than Telecom's equivalent service.

Vodafone director of business markets Russell Stanners said research results after the trial exceeded expectations in terms of users' experience, technical capability and commercial viability.

"It's also very compatible with our mobile phone business in that it doesn't require complex installation."

Inglis said by September the company would be able to cover half of Greater Auckland, and increase that to 75 per cent by the end of the year.

The Auckland launch runs in tandem with a rollout of the service in Southland, which will be followed by Northland and Wairarapa.

Walker won contracts to supply "whole of community" telecommunications to the three regions under the Government's Probe project, which aims to provide all schools with fast internet access by the end of 2004.

Inglis said public listing within two years was being considered. The most recent investor was California-based Clarity Partners, which has put $15 million into the company.