KEY POINTS:
Woosh Wireless has been buying up large amounts of radio spectrum used for mobile phone and broadband, despite the chance that it might lose the spectrum after a Government review at the end of the year.
This year, Woosh has boosted its ownership of the available Wimax-compatible 2.3GHz
band - which is a strong alternative technology to deliver wireless services next to fixed-line and mobile - from 16 per cent to 40 per cent.
But the Ministry of Economic Development is proposing to carve up and auction the spectrum when management rights come up for renewal in 2010 and Communications Minister David Cunliffe has said that a decision would be made before Christmas.
If the auction went ahead, Woosh could lose up to half its spectrum rights.
Woosh bought spectrum from Sky TV in July and Telecom in May this year.
Woosh chairman Rod Inglis said the company needed the extra spectrum to deliver a full range of IPTV services and acceptable broadband speeds.
"Once we saw what was happening with Wimax and we understood that 2.3GHz was going to be the standard spectrum, we realised we didn't have enough and needed to reconfigure it and acquire more ... from Telecom and Sky," he said. "If we could get more, that's better."
But internet and phone company Callplus says its rival has played a "backhand game" by quickly acquiring large chunks of radio spectrum in an attempt to influence a Government decision to be made in a few weeks.
Callplus Wimax service Blue Reach general manager Graham Walmsley said Woosh was "trying to get their claws" into the spectrum to fight against the ministry's proposal.
Despite the threat of the re-auction, Woosh had acquired more spectrum and was mounting a lobbying campaign to retain it.
"It is an opportunistic play by Woosh ... It would be an absolute travesty if the Government and the ministry allowed them to get away with this."
Callplus launched the first commercial Wimax service, which went live in Whangarei in October.
"We are in the game right now, whereas Woosh are simply talking about possible deployments of Wimax in Hamilton next year. It is critical to our plans and the plans of other operators that this spectrum is auctioned."
The spectrum should always be sold with a "lose or use option", said Walmsley. "It is not a commodity that people can go and buy, it is a scarce resource that needs to be utilised."
Inglis denied any ulterior motive in acquiring the spectrum.
"There was nothing ... devious about it. We are just putting as much together as we can to provide the competition," he said.
To provide true competition to Telecom, companies needed 50 megahertz to 100 megahertz of spectrum, he said.
Woosh had pledged to start offering Wimax technology in Hamilton next year, then to the rest of its customers before its management rights expire in 2010.
Telecom spokesman John Goulter said it had held about two-thirds of the spectrum, and had not used most of it.
Band battle
* Woosh has boosted its amount of the 2.3GHz Wimax band from 16 per cent to 40 per cent.
* Rival Callplus says the move is an attempt to stop the Government carving up the spectrum.
