'Ludicrous' BCL legal action provokes Swain

By ADAM GIFFORD

Communications Minister Paul Swain has strongly criticised state-owned networking company Broadcast Communications Ltd for taking legal action against rival broadband access provider Walker Wireless and naming the Economic Development Ministry as a co-defendant.

He described the company as his "biggest disappointment" as minister.

BCL wants the High Court to review Walker Wireless' licences, claiming the equipment used by Walker Wireless will interfere with BCL's gear.

"It's ludicrous to have one arm of government suing another," Swain said.

"I'm advised that when BCL came to the select committee, not only did they support an arbitration system, they proposed that it be extended, to take into account potential problems.

"My advice to BCL is stop whingeing and blaming everyone else for the mess that you have got into, arbitrate and sort the matter out."

However BCL chief executive Geoff Lawson said his company could not invoke arbitration because it believed Walker Wireless' licences were invalid.

"We are not suing the Ministry of Economic Development. We are merely naming it as a defendant in the event the judge issues a ruling requiring modification of the licences," Lawson said.

"There is a need for clarification. A third party review is the logical place to go, that is a judicial review."

BCL also cited independent radio engineer Robert Vernal, who certified the licence, in the legal action.

Lawson said he had spoken with Walker Wireless chief executive Bob Smith three times over the past week, and engineers from both companies were working together on technical solutions to the potential interference problem.

Walker Wireless chairman Rod Inglis confirmed talks were going on at a technical level with the aim of reaching an out-of-court settlement by May 15 - four days before the defendants were due to file their statements of defence with the High Court.

At a media briefing last week, BCL executives suggested the dispute would not have happened if the spectrum auction had included "guard band" separating frequencies, as has happened in other countries, or if restrictions were placed on the technology that could be deployed.

Lawson yesterday denied this should be seen as BCL attacking Government policies.

Swain said the aim of the auction was to get spectrum into the hands of companies willing to invest in getting the best use of it.

"The ministry certainly considered [making guard bands] but it's a highly inefficient way to auction valuable assets."

Even if the row can be resolved BCL's conduct has tested the patience of the minister.

He said the company was "the biggest disappointment" of his time heading the telecommunications portfolio.

"At a time when they should have been showing leadership they have prevaricated, they have argued endlessly about what their role should be and they have been obstructive."

He said the decision by Broadcasting Minister Steve Maharey to split BCL from TVNZ and make it a separate state-owned enterprise from July 1 should give the company focus. Its first chairman is Wayne Brown.