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Woosh Wireless is confident a Government decision on radio spectrum will allow it to build the rest of its network and become more competitive against telco heavyweights Telecom, Vodafone and TelstraClear.
Communications Minister David Cunliffe said this week a decision would be made before Christmas on a Ministry
of Economic Development strategy for radio spectrum Wimax - which Woosh needs to deploy its services.
Wimax is a relatively new technology for delivering wireless services over long distances, in theory 50km.
As part of the strategy, the ministry proposed to carve up the Wimax-compatible 2.3GHz band when management rights come up for renewal in 2010.
Woosh has spent several million dollars acquiring management and use rights to spectrum in the 2.3GHz band, and funding for its network is dependent on the Government rejecting the ministry's proposal.
But Woosh chairman Rod Inglis said he was sure the Government would not go ahead with the proposal because it wanted a third telecommunications network next to fixed-line and mobile.
"I think the Government wants ... certainty that the spectrum is going to be used ... I can't imagine they wouldn't be supportive of that. They are in most other Western countries."
He said the more spectrum Woosh acquired the more competitive services it could build.
Woosh secured rights in July for a broadcasting spectrum from Sky TV that will enable it to provide internet television.
"The country will be starved of the opportunity" for competitive internet and digital TV on a Wimax network if it accepted the Ministry of Economic Development proposal, said Inglis.
"I think the Government are rational and want economic transformation and economic development. It would be pretty amazing if they didn't."
Ministry manager of radio spectrum policy and planning Brian Miller said it would not comment on the Government's decision on Wimax spectrum in the 2.3GHz band.
But he said the Government would probably be allocating lots of 3.5GHz spectrum for small internet service providers early next year.
"We can't prejudge the outcomes from the ministers making decisions but there seems to be a lot of support for exploring those ideas further."
The Government would create "managed parks" for small companies to access, that would not be exclusive but would not be totally open for all internet companies to access either.
"This caters for the local smaller broadband access providers who service a small town," said Miller.
