Wireless technology a first for NZ homes

By CHRIS BARTON, IT editor

New Zealand will be one of the first countries to deploy new wireless technology that promises to deliver low-cost, fast internet services to homes.

Local wireless network provider Walker Wireless will start offering the services in April, using equipment from IPWireless, which has its headquarters in California.

Based on third-generation mobile standards, the IPWireless product uses a pocket-sized wireless modem with its own antenna costing around $US299 ($717) and does not require line of sight for connections.

Walker Wireless will use the equipment with frequency it acquired for $4 million from the Government radio spectrum auction in February.

The company said it would seek investment of $30 million next year to develop the business. It is understood that some of the money will be used to build a nationwide network of sites, like mobile phone cellsites, to provide full coverage for users.

In July last year Stephen Tindall, Craig Heatley and the Todd Corporation provided backing of $20 million.

Walker Wireless managing director Rod Inglis said the deal with IPWireless was the result of a 12-month search for the right technology.

"We very nearly went down the wrong track. Everyone thought OFDM (orthogonal frequency-division multiplexing) technologies were going to be the salvation of wireless businesses. Then we discovered what IPWireless was doing."

Last month Walker laid off about a third of its 60 staff and delayed deployment of its fixed wireless network to the home market, citing the need to leapfrog a generation of wireless internet technology.

The company has been delivering fast internet from transmission equipment at high points around the country to "line of sight" businesses with small dish antennas.

The IPWireless technology includes base stations, which operate like mobile cellsite equipment over distances of between 2.5 to 30km.

Trials have delivered data speeds of up to six megabits per second (Mbps) downstream and 3Mbps upstream.

"Users simply attach the modem to their computer, run the CD-Rom and they're set up in about four minutes," said Mr Inglis.

Roger Quayle, a New Zealander who left the country in 1994, set up IPWireless in 1999 with former Lucent scientist Bill Jones.

The company has raised more than $US120 million in venture capital from investors including Bay Partners, Doll Capital, Gabriel Venture Partners, Oak Hill Capital and the Singapore Government. It has a similar deal with Canadian company Craig Wireless for a 3G broadband wireless service in Vancouver.

Mr Inglis said Walker now had a much lower cost and easy-to-set-up service for its nationwide network.

It would be offering a variety of plans for home and business users, initially for fast internet but later would include voice services.