Telecom tipped to replace Woosh in government project

By PAUL BRISLEN

High level meetings between Woosh Wireless and the Government over Woosh's tender bids for Project Probe look likely to end in failure for the start-up wireless network builder today.

As the Herald reported on Monday, Woosh will pull out of three of its regional tenders - Northland, Wairarapa and Canterbury - but is committed to its Southland project.

Annoucements from all the main parties are expected later today.

The Herald understands Woosh is keen to continue its network expansion plans in these regions but will do so without government backing.

Telecom in conjunction with wireless broadband operator BCL is expected to take up the slack in the three regions meaning major disruption to broadband services being rolled out may be avoided.

Run by the Ministry of Education, Project Probe has a budget of "tens of millions of dollars" according to minister Trevor Mallard and a two-fold brief to extend the reach of broadband services and to increase the level of competition in the broadband market in regional and rural New Zealand.

However, if Telecom and BCL do take over these three regions they will have 11 of the 14 on offer. The remaining regions were awarded to Woosh, Counties Power and ThePacific.net.

A 15th region, covering the most remote and inaccessable parts of New Zealand, will be serviced by satellite. Negotiations are in their final stages, however Thailand-based Shin Satellite is understood to be about to seal an agreement with Telecom for a commercial service that may encompass Probe.