1.30pm
Vodafone New Zealand today announced it will spend hundreds of millions of dollars building an advanced third generation (3G) mobile network.
3G is the generic term for technology that offers mobile users simultaneous voice and data services, high speed internet access, video telephony and CD quality music services.
The company, which launched its Vodafone Live! 2.5G network in New Zealand earlier this year, said initial customer trials of the network were expected to begin within the next six months, with a progressive roll-out, initially focusing on main urban and provincial centres, within 18 months.
Vodafone NZ managing director Tim Miles said a number of local businesses had already shown interest in the service.
"They recognise the huge commercial value of increased productivity and improved service that 3G will offer and want to integrate it into their operations," Mr Miles said in a statement.
Telco analyst Paul Budde said today's announcement put Vodafone on a head-on collision course over with competitor TelstraClear.
TelstraClear has announced plans for a new network of its own based on 3G technology which it plans to have in place by the end of 2004.
"There clearly is no business case whatsoever for the launch of competing nationwide 3G infrastructures in a country the size of New Zealand" Mr Budde said in a statement.
Mr Budde said incumbent telco, Telecom NZ had indicated it saw no immediate need for 3G mobile services in New Zealand.
- NZPA
Vodafone to build 3G mobile network in NZ
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