Woosh eyes Wimax role in rural broadband

Woosh chairman Rod Inglis says the broadband firm will seek clarification from the Government on whether it could build a new WiMax network that would have a chance of competing for contracts from the Government's $300 million rural broadband scheme.

Mr Inglis says Woosh is looking at options to raise extra investment, but its prospects are linked to the Government scheme and whether Woosh can demonstrate it is a good option to participate in the building of rural broadband.

"We need to find out whether we will be in the mix."

He would not comment on whether a majority stake in Woosh might be up for grabs.

"We haven't got a fixed position on that.

"We are looking at what the opportunities out there are, what the interest is, and our own shareholders are considering their own position."

Woosh is making money and is cash-flow positive, so there is no dire urgency, he says.

Woosh's existing wireless network has about 26,000 customers and is widely used in Southland, but Woosh would look to participate in the rural broadband initiative across the country, Mr Inglis says.

The Government has proposed an industry levy that would raise the bulk of the $300m needed to connect about 900 rural schools with broadband.

It says bids to connect schools will be judged partly on the extent to which they would help meet its commitment to provide broadband speeds of at least five megabits per second to 80 per cent of rural homes and businesses.

WiMax is capable of delivering peak speeds well in excess of that, but like any wireless technology, speeds would reduce if many customers attempted to connect to the network at the same time.

There has been an "over-emphasis" on fibre, he says.

"Around the world there are 480 WiMax rollouts occurring in about 180 countries."

Submissions on the rural scheme close on Friday week.

- © Fairfax NZ News