Telecom to spend $574m on new mobile network

Telecom says it will invest $574 million in a nationwide rollout of its new mobile network.

While the investment in the "W850 network" would take place in the next two years, Telecom today said it would "transform New Zealand's mobile landscape by June 2009".

Customers would have access to the most advanced, nationwide, 3G mobile services available, Telecom said.

The technology choices announced today would extend 3G service and fast mobile broadband to 97 percent of New Zealanders, about a year in advance of Telecom's main competitor's plans, Telecom said.

The investment involved the nationwide rollout of WCDMA (wideband code division multiple access) technology, using a frequency of 850MHz (megahertz).

The W850 network would have a phased launch from November with the start of inbound roaming services, as well as a pilot programme. There would be a full launch of services by June.

Telecom chief executive Paul Reynolds said that during the past year a growing number of leading mobile providers internationally had launched WCDMA mobile networks at 850MHz, including AT&T in the United States and Telstra in Australia.

With the technology, Telecom's handsets would work on more than 430 networks in more than 170 destinations worldwide for voice and texting, and over 110 destinations for internet data.

"The possibilities are endless: bidding on an online auction from your bach at Raglan; downloading music on a chairlift at Mt Ruapehu; video calling from Hokitika to a mate in Christchurch; or instant email on your mobile while on the move in a small town or big city, anywhere in New Zealand," Dr Reynolds said.

Telecom said that overall it now anticipated spending $2.4 billion on capital expenditure during the next two financial years. That included the investment already being made in world-class fixed line broadband services and a next generation network.