Clean sweep so far on broadband

By ADAM GIFFORD

Walker Wireless has made a clean sweep of the first wave of regional broadband projects, adding Northland to its wins in Southland and Wairarapa.

The chairman of the Far North Development Trust, Chris Mathews, said the solution, based on technology from IP Wireless and with marketing and technical backup from Vodafone, was rigorously evaluated by two independent telecommunications specialists.

"As the broadband network is implemented, we can look forward to toll-free calling across the region, lower national tolls, and extremely fast data transfer and internet access speeds," Mathews said.

Walker Wireless beat out "a very good" bid from UCC Communications and one from the Telecom-Broadcast Communications (BCL) consortium.

The decision means Walker Wireless will be able to access funds from the Government's Provincial Broadband Extension (Probe) project, which aims to get broadband internet access to all the country's schools by the end of next year.

Technology providers for other regions will be decided by the Government about June.

The Southland project has already received $2 million of Probe funds, but the Government will not say how much other regions will get.

"We need to work with Walker to build a network plan," Mathews said. "We need to see where the business plan goes for Walker and its partners. And we need to negotiate where the subsidy kicks in."

The Walker Wireless regional development manager, Lindsay Cowley, said the company would soon begin identifying sites for transmission equipment and lining up backhaul capacity, probably through the TelstraClear fibre which terminates in Whangarei.

Cowley is also confident the IP Wireless technology will be ready to provide voice as well as internet services by the time the network is rolled out.

All regions have identified voice over internet as a critical element in the business case for broadband, but the technology to deliver it is considered "bleeding edge".

"It is proven at a technical level, but you would be hard pressed to find anyone actually doing it," Cowley said. "IP Wireless has put it at the top of its priority list, and we are expecting a software release any day."

The Northland decision is a blow for UCC Communications, whose director Leicester Chatfield has worked closely with the trust to develop its broadband strategy.

Chatfield said UCC intended to go ahead with its network anyway, using frequencies owned by Counties Power. It would probably target small business users in the main towns rather than try to cover 100 per cent of the region, as it would have been required to do to get Probe money.

"Probe is a subsidy to ensure coverage for the last 10 to 15 per cent, but there are no underwritten revenues, so it just becomes a PR exercise," Chatfield said.

Telecom and BCL have also suffered a further blow to their credibility. As in Wairarapa, Telecom's unwillingness to cannibalise toll revenue counted against it.

The technical solution, which uses a mix of Telecom's copper-based DSL technology sold under the Jetstream label and wireless equipment from United States company Airspan, also failed to convince the selection panel.

Its response to losing in Northland was almost identical to that in Wairarapa - that the community would pay to duplicate investments Telecom has already made.

Telecom is also pinning its hopes on winning rural customers through its tie-up with dairy giant Fonterra.

"We will continue working with key groups such as Fonterra and local schools to invest in the development of applications that will help communities achieve the benefits of broadband," Telecom's Northland sales manager, Cameron Bell, said yesterday.

It said Telecom's broadband coverage of Northland had already gone from 46 per cent to 57 per cent this year and should be over 70 per cent by the year's end.

Mathews said the market would decide.

"The question will be whether farmers will act as shareholders of Fonterra and sign up for the Telecom-BCL FonterraNet solution, or will they behave as business people and customers and sign up with a cheaper, faster option," Mathews said.

Northland Federated Farmers spokesman Bill Guest said his group would work closely with the trust to promote the Walker Wireless package to farmers and other remote users.

Road to broadband

May 2002:Government announces Probe project - $30 million plan to promote broadband competition by requiring high-speed internet access to be available to all New Zealand schools by end of 2004.

July 2002: Three regions already advanced in broadband access plans, Northland, Wairarapa and Southland, continue independently of the Probe process but are still eligible for government funding.

October 2002: Venture Southland selects Walker Wireless and Vodafone for future telecommunications. Telecom and TVNZ's transmission arm, Broadcast Communications formalise deal to tender for 14 regional Probe contracts.

Government announces 18 companies have been invited to tender for Project Probe.

Walker Wireless undertakes trials of its Ultamo broadband service.

December 2002: Government releases "request for proposal" tender document for 14 regions and a nominal 15th region designated for satellite services.

February 2003: Venture Southland gets $2 million from the Government to help with its Southland rollout.

March 2003: Wairarapa Smart Region group chooses Walker Wireless and Vodafone as its preferred technology suppliers.

April 2003: Walker Wireless, supported by Vodafone, named preferred supplier of broadband in Northland.