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Rural internet users could be the winners in the latest release of radio spectrum by the government - but one established player is disappointed by rules that exclude it from offering more services
Graham Walmsley, head of wholesale at CallPlus, said the rules meant CallPlus would be precluded from buying spectrum because it already has the maximum allowable holding of 3.5GHz spectrum.
"That to me is nonsensical because only half was subscribed last time," said Walmsley. "It has no value to Kiwis if the spectrum sits there idle."
Walmsley said it would have been logical to have companies that have shown an appetite for using the spectrum to acquire more.
CallPlus has a $3 million WiMAX network operating in Whangarei and holds 3.5GHz spectrum covering the area north of Bombay. The company is understood to have secured a US$450 million ($637 million) funding line from a Japanese investment bank to continue its wireless expansion.
Communications Minster David Cunliffe yesterday announced the government would release 75 area spectrum licences suitable for wireless broadband services, on top of 73 licences made available last year.
"It is critical to economic transformation in New Zealand that we take the necessary steps to achieve competitive broadband coverage throughout the country," Cunliffe said.
This week the Australian government finalised a deal to fund a rural wireless broadband network in partnership with the private sector. Opel - a 50/50 joint venture between Optus and Elders - secured provisional funding of A$958 million in June, and would add A$900 million.
Telstra has taken the Australian government to court after missing out on the contract.
