Telecom NZ forced to 3G by Vodafone

Telecom NZ forced to 3G by Vodafone

Summary: Telecom New Zealand was forced to make its $574 million investment in a 3G mobile network because Vodafone was eating its lunch according to Rod McGeoch, a director of the Kiwi telco.

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TOPICS: Google, Mobility, Telcos
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Telecom New Zealand was forced to make its $574 million investment in a 3G mobile network because Vodafone was eating its lunch according to Rod McGeoch, a director of the Kiwi telco.

Rod McGeoch
(Credit: Telecom NZ)

McGeoch, who had introduced Karim Temsamani, Google Australian New Zealand managing director and speaker at a Trans-Tasman Business Circle lunch today, said that Temsamani's speech outlining the people's appetite for broadband had brought to mind the $574 investment in a 3G network that Telecom NZ had announced this week.

"The reason we're doing that is that Vodafone has a 3G mobile network and are eating our lunch and we just have to respond, we're going to respond with a better spectrum and a better technology and we've announced yesterday we think we'll get a year in front of them," he told the audience.

It's now "all about" broadband over mobile networks, McGeoch said, mentioning Telstra's 12 per cent increase in mobile revenues in the last financial year to 30 June "in an industry that nobody has an increased revenue, I promise you".

He said Telstra's roll out was the best in the world at the moment and had been an enormous success.

While Vodafone eating its lunch had caused Telecom NZ to move into 3G, Google doing the same thing had caused the company to offload its Yellow Pages directories business last year.

McGeoch said the company had decided to sell Yellow Pages because, in the board's view, internet search engines were going to take over the Yellow Pages in time and "we should sell it before anybody knows".

"We did it because this man's [Temsamani's] business was on the move and was going to eat our lunch," McGeoch said.

Topics: Google, Mobility, Telcos

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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3 comments
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  • COMPETITION AT WORK!

    See, it does work and very well to the benefit of New Zealanders.

    I can't say the same for Australia. We don't have true competition due to the lack of separation between Telstra wholesale and retail. A very cosy arrangement which only benefits their share holders and senior management.

    If & when that ever happens (Could our comm's minister ever do it? A big maybe!) we WILL see savings for all consumers.
    anonymous
  • "True Competition"

    Oh you mean "true competition" like in the mobiles market mate! Where all players are willing to invest in infrastructure.

    Unlike the NBN that Terria has been stalling because thay are not serious about a proper bid except to the keep cosy arrangement in place under the Howard/Coonan years at the expense of Telstra shareholders and the Taxpayers.

    True competition will happen when Terria invest instead of leaving it to Telstra all the time!!
    anonymous
  • Competition at work?

    Yes, with some of the highest data and calling rates in the world, the New Zealand mobile duopoly is a great example of competition at work.
    anonymous