Telecom vs NZCL - The race is on

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Telecom vs NZCL - The race is on

steveonz

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#27727 4-Nov-2008 21:58

Humm, I wonder who will be first with their new GSM/HSPDA/WCDMA/UTMS network(s)....

I have noticed recently in Wellington that Telecoms network is pretty much complete, but NZCL isn't. However in Auckland, where I thought Telecom would have gone first, there is NZCL but no Telecom... Wonder what the Scene in Chch is like...

freitasm

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#175922 4-Nov-2008 22:39

This is not fair. NZ Communications started many years ahead of TNZ...

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ajw

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#175932 4-Nov-2008 23:09

steveonz: Humm, I wonder who will be first with their new GSM/HSPDA/WCDMA/UTMS network(s)....

I have noticed recently in Wellington that Telecoms network is pretty much complete, but NZCL isn't. However in Auckland, where I thought Telecom would have gone first, there is NZCL but no Telecom... Wonder what the Scene in Chch is like...

It seems such a waste that Telecom 18 months ago decided to go down the GSM/UMTS road then decided to abandon that plan after wasting all this time and money and finally deciding on 850 UMTS. Even 18 months ago Telstra in Aussie were well advanced with building their new 850 UMTS network and handsets were readily available.

steveonz

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#176029 5-Nov-2008 10:20

The entire Telecom CDMA thing still astounds me.

I used to know someone who was a consultant at NEC, he had something to do with the initial proposal for Telecom. And from Day One Telecom NZ was advised that the CDMA route was a bad one, though they stuck with it. This is in the days of GPRS (2.5G) coming out.

What astounded him was that they kept on upgrading their network even though there was only one major network in AUS and in USA, now it seems even more weird that they are fluffing around with the next gen service which they should have chosen way back in 01’ish…

sbiddle

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#176037 5-Nov-2008 10:58

steveonz: The entire Telecom CDMA thing still astounds me.

I used to know someone who was a consultant at NEC, he had something to do with the initial proposal for Telecom. And from Day One Telecom NZ was advised that the CDMA route was a bad one, though they stuck with it. This is in the days of GPRS (2.5G) coming out.

What astounded him was that they kept on upgrading their network even though there was only one major network in AUS and in USA, now it seems even more weird that they are fluffing around with the next gen service which they should have chosen way back in 01’ish…

People seem to keep saying that Telecom backed the wrong technology but don't realise Telecom had no other choice. Their fate was decided in ~1992 when they were forced to choose between keeping their newly acquired TACS spectrum or their newly acquired AMPS B band spectrum. There were no GSM networks at the time and nobody envisiged GSM being the glocal success it was.

From what day Telecom's fate was decided - they had no spectrum capable of deploying GSM. In the late 90's when Telecom did look at GSM as a replacement for AMPS/DAMPS they had the option of building a nationwide 1800 GSM network (very costly) or rollout out CDMA. CDMA was the natural evolution for AMPS operators at the time and at this time GSM850 was still just talk with no ratified standard. Telecom didn't really have to think hard - CDMA was the best (and argueably the only) choice.

Since then I'd argue Telecom made the right decision. Deploying nationwide GSM 1800 would have potentially cost them upwards of 10x the capex of CDMA and you can argue all you like but the reality is 10 years on Telecom and Vodafone still share ~50% of the market each in terms of customer numbers but higher revenue on Vodafone. Would a large scale switch to GSM have resulted in any significant difference in market share? Many people don't care about the technology, just the price they are paying for their services.

Telecom's decision to now move on is wise and done at the right time.

What do you suggest Telecom did in 2001? By then the decision to roll out CDMA had been made 2 years prior and was a done deal, remember that GSM 850 didn't even appear until 2002.

steveonz

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#176049 5-Nov-2008 11:29

I forget the details as it was about 5 years ago I even last thought about it. But I do know they had to opportunity to go down the GSM route.

ajw

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#176189 5-Nov-2008 20:20

freitasm: This is not fair. NZ Communications started many years ahead of TNZ...

And I'll be pushing daisies before NZ Comms fronts up with a network.