Telstraclear pulls plug on HSDPA in NZ - News - Communications

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Telstraclear pulls plug on HSDPA in NZ

By AAP
April 17, 2007
URL: http://www.zdnet.com.au/news/communications/soa/Telstraclear-pulls-plug-on-HSDPA-in-NZ/0,130061791,339274902,00.htm

Vodafone is denying claims that it was the cause of TelstraClear's decision to pull out of a planned NZ$50 million converged mobile broadband service in Tauranga.

TelstraClear said yesterday its pilot Unplugged wireless network in Tauranga was to be shut down because of a deliberate last minute change by Vodafone that meant the service would be uncompetitive.

TelstraClear chief executive Allan Freeth said an 11th hour change to a key component of its roaming arrangements has forced the company to make the tough decision to halt the project and focus on investments in existing and new services.

The pilot network had been on track for launch in July, was tested as planned and would have delivered a converged mobile/broadband service to homes and businesses throughout Tauranga city.

But Vodafone's late change forced TelstraClear into an untenable position, Freeth said.

"We could delay our launch and lose many months pursuing legal action or persuading Vodafone to revert to its previous position. In the interim, Vodafone would go to market with its own service.

"Or, we could push ahead with the July launch of a service Vodafone's late change had made unattractive and uncompetitive.

"Either course was unacceptable, so we made the tough decision to shut down the network and invest in other services."

TelstraClear said it had received and would comply with a Section 98 notice from the Commerce Commission requesting all documents and correspondence relating to commercial negotiations between Vodafone and TelstraClear around Unplugged.

Vodafone commercial development manager Tom Chignell denied anything done by his company was the cause of TelstraClear's decision.

"I don't see that it's got really anything to do with Vodafone at all," he told Radio New Zealand today.

Vodafone had signed an agreement with TelstraClear on March 15 to provide the service and had been working with it on a technical and implementation level since then.

"We've actually been working very hard to provide them with a service that enables them to do this.

"We've provided them with a service that's far superior in most respects than any regulated service would be," he said.

"We obviously favour commercial outcomes over further regulation, and this is an area the commission is looking at the moment, so we're obviously very aware of it."

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