Vodafone says wireless threatens fixed lines Vodafone says wireless threatens fixed lines

By Nick Stride

Friday 31st May 2002

Tim Miles

Vodafone New Zealand managing director Tim Miles says a wireless broadband venture with Walker Wireless "has the capacity to make fixed telephone lines redundant."

Speaking after the release of a 52% annual profit rise, Mr Miles said Walker's technology had already been proved elsewhere.

Vodafone NZ had checked out its global parents' experience with the technology and was satisfied it held water.

A wireless broadband service using the same technology was in service in Canada and was being tried in various European countries, Mr Miles said.

The principal aim of a $3 million Vodafone-funded trial was to test customer reaction among target market groups - such as what prices they would be prepared to pay for the service, how they would prefer to buy it and packaging options.

In a package announced last week Walker will get an initial capital injection of $20 million, with $40 million pledged to a later rollout.

The Warehouse founder Stephen Tindall, Sky Network television founder Craig Heatley, Todd Corporation and Walker Wireless founder Rod Inglis are putting up $12 million of fresh capital in the initial round and have pledged a further $10 million for later-stage funding.

California-based telecommunications venture-capital outfit Clarity Partners will contribute $5 million, with a pledge of a further $10 million.

Mr Miles said the trials would last for some months but he expected a commercial rollout before the end of this year. "We're very hopeful and confident it will take off," he said.

The proposed service is based around a wireless modem, a little bigger than a deck of cards.

Sitting in a residence or business it will provide high-speed internet access to computers in that building but it can be transported to provide the same function for computers elsewhere.

If a commercial rollout goes ahead it will use Vodafone's national network of cellphone towers. Unlike many wireless technologies it isn't dependent on direct line-of-sight between cell towers and receiver/transmitters.

But, Mr Miles said, tests had also to establish how the technology would work in New Zealand's topography and other unique conditions.

Vodafone New Zealand this week announced March-year earnings before interest, tax, depreciation and amortisation of $270 million, up from $177 million a year ago.

Customer numbers rose to 1.1 million, from 889,000 a year ago.

Overall average revenue per user (ARPU) was $636: $287 for prepay users and $1812 for contract customers.

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