KEY POINTS:
TelstraClear has abandoned a $50 million wireless network project in Tauranga, blaming dirty tactics by competitor Vodafone - a claim disputed by Vodafone.
TelstraClear chief executive Allan Freeth said the Tauranga pilot, due to go live in July, will be shut down because of a deliberate last minute change to a roaming agreement with Vodafone.
"We had a national roaming agreement and an additional agreement to make the changes that would allow us to deliver Unplugged. We proceeded on that basis," said Freeth.
"We could delay our launch and lose many months pursuing legal action or persuading Vodafone to revert to its previous position. In the interim, Vodafone would go to market with its own service. Or, we could push ahead with the July launch of a service Vodafone's late change had made unattractive and uncompetitive.
"Either course was unacceptable, so we made the tough decision to shut down the network and invest in other services." said Freeth.
Vodafone chief executive Russell Stanners said he was completely surprised with today's accusation.
He said nothing has changed in the agreement Vodafone signed with TelstaClear to provide mobile roaming.
"Vodafone is struggling to understand why TelstraClear has suddenly decided the agreement is unsatisfactory and why there has been no direct communication between the companies prior to this public attack. It was signed on March 15 and until late last week Vodafone was working closely with TelstraClear at a technical implementation level to deliver the service," said Stanners.
"The agreement we provided TelstraClear is superior to what today's regulation requires us to do in many respects, but we have decided to support their pilot. For example under regulation we are not required to provide any agreement until they have ten per cent coverage with their own network."
Stanners said there may other reasons for TelstraClear's decision which the company is seeking to mask by blaming an innocent party.
"This is not the first time that TelstraClear has pulled out of investment and blamed other players in the market," Stanners said.
"I think there's more reasons than what is stated in this release."
Last month IDC analyst Darian Bird told the Business Herald the company's major obstacle to growth was a lack of national mobile network, which prevented it providing the full telecommunications package, so important as the market moved to bundled mobile, internet and home phone services. "It is an important step, but only if it can extend it nationwide," said Bird.
Prior to the roaming agreement signed in March to provide services for the Tauranga project, Vodafone had been on board for TelstraClear's nationwide plans. That agreement, signed two years ago, has since lapsed.
- NZ HERALD STAFF
