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

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • 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
  • 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
    • 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
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • 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

Chris Keall: The real reason Spark boss Simon Moutter loves 5G

Chris Keall
By Chris Keall
Technology Editor/Senior Business Writer·NZ Herald·
11 Dec, 2018 04:44 AM5 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

    Reminder, this is a Premium article and requires a subscription to read.

Spark boss Simon Moutter has a cunning plan. Photo / Dean Purcell.

Spark boss Simon Moutter has a cunning plan. Photo / Dean Purcell.

Chris Keall
Opinion by Chris Keall
Chris Keall is the technology editor and a senior business writer for the NZ Herald.
Learn more

COMMENT:

Why is Spark boss Simon Moutter campaigning so hard for 5G mobile networks to be live in time for the America's Cup in 2021? And for his own company's 5G (fifth-generation) mobile network to launch in July 1, 2020 - barely 18 months away.

Listening to Moutter talk, you'd think overseas visitors will laugh at us if there's no 5G by Cup time, and our economy in general will founder.

I'm exaggerating for effect, but only a little.

New Vodafone NZ boss Jason Paris has been measured on his company's next mobile network upgrade, saying his company loves the technology but sees no business case for it yet (logical, since Apple, Samsung and other 5G phone makers won't have 5G-compatible handsets for a couple of years, at least at anything like mass-market pricing).

Advertisement
Advertise with NZME.

Simon, by contrast, has 5G fever.

And he'll be mopping his brow further now that Australia's first 5G spectrum has just wrapped up (netting a very tidy sum; keep reading).

Moutter bemoans that our Government has yet to decide which bandwidth it will sell, let alone set a date for an auction. He says it will have to be in the first half of next year for Spark to meet its (arbitrary) July 1, 2020 5G launch deadline.

Advertisement
Advertise with NZME.

Why the rush?

Moutter says 5G will have benefits for some areas of the fast-growing Internet of Things, or machines talking to machines over the internet. And he has a point there.

Discover more

Media and marketing

300,000 sports pirates: Sky TV and Spark at odds over crackdown

30 Sep 12:12 AM
Telecommunications

Start your engines: Spark nabs Formula 1 rights off Sky

24 Oct 08:59 PM
Telecommunications

Why Spark can now take a shot at Super Rugby and the All Blacks

07 Nov 05:46 PM
Telecommunications

The interview: New Vodafone NZ boss will stress Sky

09 Nov 04:00 PM

He also makes the meat-and-potatoes argument that the amount of mobile data we use is roughly doubling each year.

"Data volumes will start to exceed 4G's sensible limits around 2020/2021," he says.

Again, valid.

And he says that 5G will help Team NZ better prepare for the Cup as it uses a pre-launch mini 5G network to stream big chunks of data to shore in real-time.

I guess. At a pinch.

But, beneath the surface, there's also cunning commercial strategy at play. Simon wants to put Telecom back together again, or at least put his company in control of every element of your broadband connection - or regain vertical integration, in industry-speak.

Advertisement
Advertise with NZME.

In 2011, the government cleaved Telecom in two, creating network operator/wholesaler Chorus and the retailer today known as Spark.

That means when you pay your landline bill to Spark, around half the money goes to network operator Chorus.

Over the past couple of years, Spark has shifted $60m+ a year from Chorus' pocket to its own by literally cutting the wholesaler out of the loop with its fixed-wireless service - which uses Spark's 4G mobile network to deliver broadband into a home. That means Spark keeps 100 per cent of the bill.

But there's a problem: Moutter says the total addressable market for fixed wireless over 4G is only about 200,000, and in practical, easily saleable terms not much above its current 125,000 or so customers.

But with the more generous bandwidth of 5G, it will be all on again. Moutter has even said 5G should allow Spark to offer unlimited data bundles for fixed-wireless customers. That, coupled with the fact that 5G has far less of a latency (or lag) issue with two-way data connections than 4G, and 5G will look like a pretty robust, cheaper alternative to UFB fibre for hundreds of thousands of households. Moutter want a piece of that high-yield action, with Chorus watching jealously from the sidelines (if all goes to his plan) and he wants it ASAP.

Meanwhile, across the Tasman, things have been progressing apace.

Three weeks of bidding for 3.6GHz frequency saw Telstra pay A$387m for 143 lots, a joint venture between Vodafone Australia and its merger partner TPG buy 131 lots for A$263m, Optus pay A$185m for 47 and UK-based telco services provider Dense Air pay A$29m for 18 lots.

All up, the Aussie government raised A$834 ($872m) from its initial 5G spectrum auction (more spectrum is expected to be made available).

On our side of the ditch, Communications Minister Kris Faafoi won't give any details at this point, but says everything will be sorted in time for Spark, Vodafone NZ and 2degrees to start 5G mobile network upgrades in 2020.

Like other governments around the world, ours has to decide whether to have a free-for-all, which was nice for Crown coffers when 4G spectrum was auctioned in 2016, when Spark ($149m), Vodafone NZ ($55m) and 2degrees ($44m) forked over a total $261m. Or, whether it imposes some kind of cap, such as the so-called "competition controls" that the Aussie government imposed on the big players for its 5G auction just closed, which limited the amount of spectrum the big players could buy in the key Sydney and Melbourne markets.

It's swings and slides. An unrestricted bidding war would bring in more money for the Crown, but also leave telcos with less money to actually build 5G networks, leading to slower rollout progress - and with more costs that eventually get landed on consumers. And as with the 3G and 4G auctions, iwi claims are likely to complicate the picture.

Worldwide, the general trend has been for governments to err on the side of progress over short-term gain, with 5G reserves usually set at reasonably modest levels next to the 4G and (especially) 3G frenzies.

Moutter may be impatient. But from where Faafoi stands, there's no pressure to rush his decision.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Telecommunications

Premium
Business|markets

Spark auctioning half its data centre business to fund $1b expansion push: report

01 May 12:09 AM
Premium
Business|economy

‘A sense of invisibility’: Business leader survey finds lack of Government leadership

28 Apr 08:00 PM
Lifestyle

Half of Kiwi adults overwhelmed by phone notifications, study reveals

21 Apr 05:00 PM

One tiny baby’s fight to survive

sponsored
Advertisement
Advertise with NZME.

Latest from Telecommunications

Premium
Spark auctioning half its data centre business to fund $1b expansion push: report

Spark auctioning half its data centre business to fund $1b expansion push: report

01 May 12:09 AM

Surf's up for the telco as its capital-raising effort comes to the sharp end.

Premium
‘A sense of invisibility’: Business leader survey finds lack of Government leadership

‘A sense of invisibility’: Business leader survey finds lack of Government leadership

28 Apr 08:00 PM
Half of Kiwi adults overwhelmed by phone notifications, study reveals

Half of Kiwi adults overwhelmed by phone notifications, study reveals

21 Apr 05:00 PM
Premium
Spark follows Air NZ in deal with Indian outsourcer

Spark follows Air NZ in deal with Indian outsourcer

17 Apr 02:00 AM
Connected workers are safer workers 
sponsored

Connected workers are safer workers 

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
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • 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