Cellsite sharing vexes BCL

By CHRIS BARTON

News last week that the Government would move to introduce mandatory cellsite co-location in the telecommunications bill was welcomed by Econet.

The fledgling mobile operator will be able to put its transmission equipment on both Vodafone's and Telecom's cellsite towers as it builds a third mobile network nationwide.

Econet, which plans to have a GSM network similar to Vodafone's, is also able to use that company's network in areas where it does not have coverage

The Government was quick to hail the news that the Zimbabwe-based company was setting up here as proof that it had made the right decision. The proposed legislation had done its job - promoted competition in the market. And the New Zealand consumer, with a third mobile network to choose from, could only benefit.

Time will tell.

But the Government's sudden change of heart on co-location and roaming has caused a headache for state-owned BCL, the broadcasting arm of TVNZ.

Some of BCL's towers, which provide TV transmission sites for all of New Zealand, are also used by Vodafone and Telecom as cellsites. So do they come under the co-location provisions of the new bill?

"That's a very good question," says BCL managing director Geoff Lawson. "We're attempting to understand many of those issues ourselves."

It is also an issue for Econet's Tex Edwards, who is in the middle of drawing up plans for the best locations to house his cellsite gear - and some of those BCL sites are looking attractive.

Then there is the question of co-location for fixed wireless operators such as Walker Wireless. If the mobile operators can get access to cellsite towers, why doesn't the Government give the same opportunity to firms like Walker that are also trying to bring competition to the broadband internet market?

In truth Walker Wireless already has a co-location agreement on BCL towers. But that only covers transmissions in the general licence - 2.4GHz and 5.8GHz - microwave frequency bands. Walker Wireless managing director Rod Inglis says he has tried for five months to get co-siting for transmission in the 1098 band of frequencies it bought this year in the Government's radio spectrum auction.

"We're finding it very difficult to get any form of cooperation or commitment. That is slowing down our ability to roll out our network," he says.

Interestingly, BCL also bought some 1098 spectrum at auction and has other frequencies in a similar range.

"We can't see any rationale other than they [BCL] want to build a monopolistic network themselves," says Mr Inglis.

"We've tried to build a cooperative, collaborative approach with them. If we cannot get there the Government needs to regulate."

I asked Communications Minister Paul Swain if the issue of access to BCL towers would be clarified in the supplementary order paper. He said it was under consideration.

Which would make sense. After all, one of the Government's key aims is to see widespread broadband access for all.

It has also just released a discussion paper on a proposed auction of more spectrum next year. Some of the bands include 3.4-3.6GHz frequencies that are suitable for wireless local loop applications.

But rather than sell all spectrum to the highest bidder, the Government is thinking about keeping some to meet specific aims such as bridging the gap between rural and urban areas in high-speed internet - the so-called digital divide.

"Some spectrum may also need to be retained to ensure that Government objectives that may not otherwise be achieved, particularly high-speed internet provision in rural areas of New Zealand, can be met in the future," says the paper.

A eminently sensible idea. As the Government puts it: "Retaining some spectrum would enable the Government to provide licences on appropriate terms in specific geographic areas of New Zealand."

Great. Digitally impoverished communities may be able to take control of their broadband destiny. But just as Econet found, there are huge economies through not having to duplicate infrastructure like cellsite towers.

A wireless local loop needs a high point for transmission equipment and most communities have a BCL site not far away.

In the absence of local loop unbundling regulation - the opening up of Telecom's monopoly on the line from our homes to a local exchange - the Government is betting the farm on wireless technologies bringing competitive forces to bear on this segment of the market.

Which is why BCL has such a key role. As a Government-owned enterprise, BCL should be setting the example for the new era in telecommunications, not dragging the chain.

A decade of the effects of light-handed regulation in telecommunications should have made it clear to the Government that a lack of rules to promote competition brings about just one thing - long and costly court battles. Ultimately that means the consumer misses out on more choice and cheaper telecommunications services.

* chris_barton@nzherald.co.nz

Links


Proposed Auction of Spectrum Rights for WLL, LMDS and Cellular Services: Discussion Document

Telecommunication Bill reported back from select committee

Review of Telecommunications Infrastructure to Provide Access to Data Services in Small Communities