No launch date for new mobile firm

NZ Communications has spent $150 million to build its mobile network, and erected 320 cell towers, but it remains tight-lipped about when it will launch.

The firm, formerly known as Econet Wireless New Zealand, has been trying to build a national 3G mobile network since 2000.

Papers filed with the Ministry of Economic Development show the firm has built 320 cell sites, all of them operational.

It reportedly has plans for 1320, a network that would give it coverage of 80 percent of the country.

Well-placed sources say NZ Communications has spent $150m on the network build so far.

The firm is pleased the Commerce Commission has revoked the co-location code of the self-regulatory body, the Telecommunications Carriers Forum.

It has issued new rules for co-location which would allow NZ Communications to place equipment on Telecom and Vodafone's towers and get to market quicker.

NZ Communications chief commercial officer Bill McCabe said it had budgeted for 400 co-locations by April next year but had been hampered by the ``fatally flawed'' TCF code.

The new process would facilitate a better relationship between the telcos, and the incumbent operators looked as though they were going to behave, he said.

The company has signed a heads of agreement with Vodafone which allows it to place equipment on 116 Vodafone towers, but still hadn't co-located on any site.

McCabe dismissed speculation it had run out of money. The company reported a loss of $13.8m for the March year, a significant jump from $2.5m in the 2007 financial year. Accounts show its capital expenditure was $6.8m.

The commission said it would be closely monitoring the co-location negotiations with Telecom and Vodafone, given the limited progress.

NZ Communications had co-located with broadband firm Woosh and Compass on a small number of sites.

``The process is going well on the limited number of sites and project teams are working well together,'' said McCabe.

The firm had several hurdles to get infrastructure in the ground, including resource consent approvals, he said.

Its roaming deal with Vodafone would allow it to have 98 percent coverage at launch.

- © Fairfax NZ News