NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Telecommunications

<i>Anthony Doesburg</i>: Rural broadband bid prompts an unlikely alliance

NZ Herald
5 Dec, 2010 04:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Steve Rieger of Vodafone says teaming up with Telecom for the Government's Rural Broadband Initiative is a major departure. Photo / Greg Bowker

Steve Rieger of Vodafone says teaming up with Telecom for the Government's Rural Broadband Initiative is a major departure. Photo / Greg Bowker

Telco rivals say they have the technology to deliver the Government's goals.

If 3D television delivered to the backblocks via a cellular network doesn't sound improbable enough, how about the fact that it could be an alliance of rival telcos Vodafone and Telecom that makes it possible?

That's the picture that was drawn last week by Vodafone during a demonstration of 4G
cellular services using equipment from Nokia Siemens.

The services were mostly spectacular - except for the part where the comparative download speeds of 4G, 3G and 2G networks were shown.

Although an apparently genuine file was downloaded over the 4G network set up for the occasion in Nokia Siemens' Auckland office, only simulations of how long the same download would take over 3G and 2G networks were provided. Needless to say, 4G was faster - but we knew that, and the bar graphs showing imaginary 3G and 2G network performance just looked faintly ridiculous.

It also seems faintly ridiculous that the country would cheer at the surprise joint Vodafone-Telecom bid to provide internet access from the countryside under the Government's Rural Broadband Initiative (RBI). To all appearances, the two telcos are bitter rivals, so co-operating over an RBI bid seems improbable in the extreme.

But appearances may be deceptive. Former Telecommunications Users Association (Tuanz) chief executive Ernie Newman made no bones about referring to the cosy duopoly Vodafone and Telecom have maintained for years in the mobile market.

Perhaps they're more practised at co-operation than they're given credit for. After all, they have put up a united front in resisting a reduction in mobile termination rates, making it hard for newcomer 2degrees to get established, and ensuring that New Zealanders pay over the odds for mobile services.

With that history, it would be a generous user community that embraced the pair's pitch to the Government to win the RBI contract, landing them about $285 million of taxpayers' money. Nevertheless, they do look to have a persuasive technology case.

Their plan is not to deploy 4G services straight off, since the necessary radio spectrum won't be available until the plug has been pulled on analogue television transmission. The so-called digital switchover will take place in November 2013 and, between now and then, the Ministry of Economic Development (MED) will work out how to divvy up the newly vacated radio waves.

Just as important, much larger Asian countries such as Japan, Korea and India will decide how to use their digital dividends as the windfall of scarce spectrum is known. Their decisions matter since, to keep equipment prices down, it makes sense to have as many users as possible providing the same sorts of services on the same frequencies. So where they go, we're likely to follow.

When 4G is available here (it already is in Sweden and Germany), it promises plenty. Improbable as it sounds, the Nokia Siemens demonstration showed four 3D movie feeds coming via a 4G cellular connection to a large TV screen, each consuming about 20 megabits a second (Mbit/s) of the 100Mbit/s capacity of the mini-cellsite.

In the real world, of course, that 100Mbit/s would be divided among a number of users. Vodafone estimates that at peak times four to five subscribers would be contending for the available bandwidth.

But 4G is still a few years away; and nor are Vodafone and Telecom assured of winning the RBI contract. The Government received five responses to its tender, which called for provision of 5Mbit/s services to 80 per cent of rural households, with the remainder receiving at least 1Mbit/s.

Steve Rieger, who is in charge of Vodafone's RBI effort, acknowledged the joint bid was a major departure. It would draw on the optical fibre-laying capabilities of Telecom's Chorus unit to provide the network backbone, and require Vodafone to erect 154 new cell sites in addition to its existing 380 to connect to subscribers.

A successful RBI bid would see Vodafone begin bumping up its 3G network speed from the present 7.1Mbit/s to 28.8Mbit/s, so that rural cell sites shared by five subscribers would meet the Government's 5Mbit/s service requirement. And in four or five years, an upgrade to 4G would deliver 100Mbit/s.

Vodafone and Telecom aren't confining the new sharing spirit to themselves. Rieger says the cell towers, for which Resource Management Act "forgiveness" will be sought so they can be built 5m to 10m higher than the existing standard permits, will be available to all-comers.

"One of the messages that we're keen to make sure the MED understands is that the infrastructure we're proposing will be very open," he says, so companies such as 2degrees, Kordia and others will be able to use the towers.

Whether that message gets through should be known shortly. The Government is expected to begin negotiating the RBI contract any day.

Country connection

* The Vodafone/Telecom bid is one of five proposals seeking funding under the Rural Broadband Initiative.

* The goal is to provide 80 per cent of rural households with broadband speeds of at least 5Mbps, and the rest with at least 1Mbps.

* The Government now has to evaluate the contenders and start negotiating the contract, worth about $285 million.

Anthony Doesburg is an Auckland technology journalist

Discover more

Telecommunications

Rural broadband plan unveiled by Govt

15 Mar 09:30 PM
Media and marketing

Digital TV switchover by 2013 - Govt

16 Sep 02:00 AM
Telecommunications

Telecom, Vodafone broadband bid one of five

12 Nov 03:18 AM
Telecommunications

Telecom and Vodafone hook up for broadband bid

12 Nov 04:30 PM
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Telecommunications

World

Trump gives TikTok 90 more days to find buyer, again delayed ban

19 Jun 05:53 PM
Business|companies

One NZ expands Starlink partnership to Internet of Things

15 Jun 09:34 PM
Premium
Stock takes

Stock Takes: Why NZ's largest firms are suddenly ripe for takeover talks

12 Jun 09:00 PM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from Telecommunications

Trump gives TikTok 90 more days to find buyer, again delayed ban

Trump gives TikTok 90 more days to find buyer, again delayed ban

19 Jun 05:53 PM

ByteDance is in talks with US investors to reduce its share in TikTok.

One NZ expands Starlink partnership to Internet of Things

One NZ expands Starlink partnership to Internet of Things

15 Jun 09:34 PM
Premium
Stock Takes: Why NZ's largest firms are suddenly ripe for takeover talks

Stock Takes: Why NZ's largest firms are suddenly ripe for takeover talks

12 Jun 09:00 PM
Premium
Tech Insider: A $529 phone, bought in March, can only make 3G calls; IRD’s AI warning; Musk’s pain is Beck’s gain; a self-employed Wellington man scores a $16K Google Cloud refund

Tech Insider: A $529 phone, bought in March, can only make 3G calls; IRD’s AI warning; Musk’s pain is Beck’s gain; a self-employed Wellington man scores a $16K Google Cloud refund

10 Jun 03:14 AM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP