High-speed wireless promises fading

By CHRIS BARTON

The prospect of wireless technologies delivering high-speed internet to our homes took another step backwards last week. Vodafone has decided to run its European third-generation (3G) networks - due to launch in 2002 - at 64kilobits per second (kbps). .

We had been told to expect data rates of at least 144-384kbps and even faster last year when operators spent €120 billion ($251.8 billion) buying European 3G licences. Another over-hyped technology.

As Yankee Group's Declan Lonergan put it: "This is just one more piece of news that reaffirms our view that 3G was never going to be about things like video."

There's more bad news from Durlacher whose research report says: "Universal Mobile Telecommunications System (UMTS) will not enable the mobile multimedia world heralded by operators and equipment vendors within the time frame predicted ... Bandwidth limitations will be alleviated largely only by the introduction of 4G after 2008-2010." A 10-year wait - good grief.

The news delivers another blow to the New Zealand Government, which was counting on these and other wireless technologies to start delivering alternative fast internet pathways to Telecom's wireline monopoly on the local loop - the so-called "last mile" between the local exchange and our homes.

It was one of the reasons the Government gave for not unlocking Telecom's monopoly on this crucial first mile from our homes to the information superhighway.

It also raises the question again of whether it was wise to sell off our 2.5G and 3G airwaves last year for a paltry $139 million - especially with no requirement that the buyers have to do anything with the frequencies. Hardly an intelligent way to meet the Government's goal of widespread broadband access for all New Zealanders.

But mobile frequencies aren't the only wireless technology failing to deliver local competition.

Perhaps most disappointing is Walker Wireless, which has been building a nationwide fixed wireless network for over two years but has yet to provide anything remotely competitive with Telecom's wireline Jetstream service for the residential user.

In July it announced Waverider I - offering connection at speeds of up to 256kbps for $129 a month. Waverider 2 costs $149 a month allowing speeds of up to 1mbps but with a monthly download limit of 1 gigabyte.

In comparison Xtra Jetstart at a slow but unlimited 128kbps is $65 a month and Jetstream is $89 a month for 600 megabytes. Then there is ihug's Ultra service, using satellite - great but it still ties up your phone line for the back-path and doesn't give you the always-on broadband experience.

At the beginning of the year ihug said it was looking at introducing a two-way satellite service, but nine months later there is no sign of that either. Such services have made a debut overseas such as Hughes' DirecPC and StarBand and closer to home Telstra's two-way service in Australia.

But there are problems with this technology too. Satellites are not yet geared to carry huge numbers of internet subscribers, so the satellite providers are pitching their wares mainly to people in rural areas who cannot get fast cable or DSL (digital subscriber line) services. They are also expensive, limit users from excessive downloading and the return path speed is between 40-60kbps.

So why are we waiting, waiting and waiting for these wireless services to deliver to our homes? Depending on who you talk to, the answer seems to be either because the technology is too immature, or too expensive to roll out to residential users for the operators to make a profit, or that it's too difficult to compete with Telecom's monopoly on the landline. Either way, it's an area the Government will need to step into if it wants to achieve its broadband-for-all vision.

Interestingly, the Government does have a huge opportunity here - in the form of BCL - the transmission arm of TVNZ. With some creative vision, the Government could build out a hybrid broadband satellite and fixed wireless network that would deliver telecommunications and digital television services to all New Zealanders. True, it goes against the trend of selling off our communications infrastructure - but these airwaves may hold the key to New Zealand's knowledge economy future. Perhaps Jim Anderton, when he's done with the people's bank, could start on the people's network?

* chris_barton@nzherald.co.nz

Links


Durlacher

DirecPC

StarBand

Telstra BigPond Broadband Satellite