Network service gathers speed

By CHRIS BARTON

Vodafone expects to have its "2.5 generation" mobile network delivering high-speed internet services to customers by the end of the year.

Managing director John Rohan announced yesterday that the company had made its first fast internet call in New Zealand on a trial GPRS (General Packet Radio Service) network.

The Nokia technology Vodafone is currently testing allows mobile phones to be constantly connected to the internet at speeds of around 100 kilobits per second. The New Zealand trial is being run in conjunction with a similar trial in Australia using Ericsson equipment.

Mr Rohan said a decision had yet to be made on which technology would be used, but said the rollout of GPRS in New Zealand - an overlay on Vodafone's existing GSM mobile network - would cost around $10 million. He said the money was part of a $200 million investment in the past 20 months which expanded coverage and boosted capacity.

A rollout by the end of the year would give Vodafone a significant jump on Telecom, which is not expected to start offering its 2.5 generation service until the second quarter of 2001. Telecom's service will use a different cellular technology - CDMA One - supplied by Lucent and costing $200 million.

While both services provide a ten-fold improvement in existing mobile data speeds, the real benefit for consumers comes in the ability to be always connected. That means instant access to internet-based information such as plane and bus timetables, as well as up-to-the-minute news and information such as stock prices and traffic reports. It also provides mobile-phone transaction services such as online banking or buying theatre tickets.

Vodafone's service requires GPRS-capable handsets which are expected to become available towards the end of this year. The improved network is also likely to usher in a new range of mobile internet appliances combining, for example, phone, electronic diary and MP3 audio player.

Mr Rohan said about 25,000 users were currently accessing Vodafone's New Zealand internet portal which provides local content services using the existing short-messaging service and recently introduced Wap (wireless application protocol) .

Content providers include the Lotteries Commission, TVNZ's nzoom, Metservice, Wilson & Horton's iTouch, ASB Bank, and IRN.