KEY POINTS:
Telecom says it is not concerned about the fact that its new mobile network will be different from that of Australia's Telstra - one of its biggest roaming partners.
Telstra plans to completely replace its CDMA network with the A$1.1 billion ($1.3 billion) "Next G" network by early next year. In New Zealand, Telecom is spending $300 million on its own CDMA replacement, due to kick off this year.
Telecom's chief operating officer of technology and enterprises Mark Ratcliffe said Telecom's network choice was made by weighing up its access to spectrum, access to handsets and mobile devices using that spectrum, plus the ability for Telecom customers to use similar networks when roaming overseas.
"We thought about going to wideband CDMA at the 850MHz spectrum which is what Telstra in Australia have done, but when we looked around the world there weren't really that many people doing it at that particular spectrum and we worried about getting handsets in the medium term," he said.
"If I were in Telstra's shoes I would be a little concerned about that. They're obviously backing themselves to get on top of the situation at some point but I think there are some challenges for them there."
Telecom's new network would use spectrum already owned by Telecom - 850MHz frequency for a nationwide GSM network and a high speed 3G network in towns over 50,000 people on 2100MHz frequency. "Over time we will extend that 2100 [MHz] network so ultimately it will be nationwide."
Ratcliffe said although decisions about partnerships to leverage handset buying power were "a way off", the number of companies worldwide using the same technology was a factor in Telecom's network choice.
"One of the reasons for choosing this particular combination of frequencies and network choices is because it does give a very broad range of people we can partner with ... there's quite a queue of them," he said.
"For a small company like ours, on a global scale, you have to try and back choices where the majority of people or as many people as possible so you get a good range of devices there."
Ratcliffe said Telecom also aimed to get as much value out of existing investment in the eight-year-old CDMA network. This would include re-using cell sites and aspects of the CDMA technology, he said.
Vodafone New Zealand also announced plans this month to build a WCDMA using the 900MHz frequency.
Vodafone said using 900MHz would make the project cheaper because it provided wider coverage per cell site than a 2100MHz network.
Telecom shares closed up 7c at $4.70 yesterday.
On The Way
* WCDMA (Wideband Code Division Multiple Access or wideband CDMA), is a 3G cellular network which can handle mobile calling, video and high-speed broadband.
* Telecom and Vodafone are building WCDMA networks in New Zealand.
* Vodafone will be first to complete their network in early 2008.
