Dialogue: Small player dips into global pool

By MOHAN JESUDASON*

People say a week is a long time in politics. The same can be said of the world of mobile communications.

Trends in this industry are moving so rapidly that keeping pace with development is an enormous challenge.

This is especially so for Telecom Mobile, a small player in what is rapidly becoming a coterie of global cellphone operators. It is a big reason why Telecom has developed a relationship with global player Hutchison Whampoa and its Australian arm.

Telecom Mobile has 1.3 million customers and subscriber numbers are growing quickly, even though more than half of all New Zealanders own cellphones.

New Zealanders have discovered the value of being in touch anywhere at any time. They want that flexibility to enrich their lives, and third-generation (3G) cellphone technology aims to deliver on that score.

Because of the huge investment required, mobile firms need to ensure that 3G delivers services which customers want to buy.

People will embrace technology that is appealing and easy to use, as we have seen with both the internet and the cellphone (where Telecom Mobile revenue has grown from nothing to $1 billion in a decade).

Lifestyles are changing. More people are on the move and the cellphone is increasingly critical.

For people to manage their work or personal lives in this way will require new devices and more bandwidth.

Enter Telecom's new CDMA (code division multiple access) network and its path to 3G.

CDMA is the most advanced cellphone network technology available and is the basis for international 3G standards.

More than 30 countries now have CDMA networks and there are nearly 90 million cellphone subscribers worldwide.

Within a few months of launch (a pilot programme is about to begin and full commercial start-up is just weeks away), Telecom will introduce a 2.5G service.

This will support many of the multimedia applications that companies would not be able to deliver until 3G arrives some years from now.

Telecom Mobile's 2.5G IXRTTT service goes a long way to delivering 3G capabilities for New Zealanders and is well ahead of what GSM technology can offer.

It has the ability to provide all sorts of amazing services without the need for wires, using a host of personal digital assistants (PDAs) and variations of cellphones.

Customers will be able to access their work e-mail, intranet and computer LAN systems, and there will be a range of buying and banking options.

The cellphone can be used as a remote control providing secure access to the customer's car or house.

News, weather and sports scores will be available. The cellphone may even become a mobile polling booth.

People will be able to plan journeys, receive traffic information and play games.

Fixed-wire internet commerce, or online buying, has had varying success. A mobile device should prove a more convenient way of paying, particularly for items such as CDs, books, airline tickets, sports tickets or restaurant reservations.

So why should it work more easily via cellphone?

Take an airline reservation. You could select the flight, pay for the ticket, have an e-ticket sent, check out the in-flight menu and seating, order foreign exchange, check in and receive a boarding pass, all via your phone.

The possibilities are enormous. The vision is for people to use their cellphone instead of other devices.

So why did Telecom Mobile seek out Hutchison? It has 3G licences covering more than 170 million people.

It can provide Telecom Mobile with access to the best technology quickly and at the best price.

Through the association with Hutchison's Australian operations, New Zealanders get access to a larger, bigger-spending market.

As a small player we could not otherwise be within the inner circle.

Only time will tell how the world will embrace the capabilities of 3G. But the nature of the agreements with the Hutchison group gives Telecom Mobile tremendous opportunities and valuable ways to hedge the uncertainties of the future.

It is also worth remembering that New Zealand and Australian operators have been cautious with their investing. In New Zealand, we spent $US6 ($14.60) per person buying 3G spectrum, compared with $US460 in Germany.

* Mohan Jesudason is general manager of Telecom Mobile.