2degrees has begun a network upgrade that will allow it to attack higher-end customers, offer a much broader range of phones, and begin offering extras like data cards and notebooks with built-in cellular radios.

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The new mobile has today announced it has begun to “to integrate 2100 MHz, 3G spectrum across its new network”. (Vodafone uses the same slice of 3G spectrum.)

That is, attach hardware to its cell sites that will enable mobile phones on its network to achieve faster connection speeds to the internet. 3G also allows for snazzier devices such as the latest iPhone working at full speed, and extras like data cards.

Today, 2degrees network is restricted to 2G, with a voice and txt focus (although limited data is supported, albeit at a nosebleed 50 cents per megabyte).

2degrees chief executive Eric Hertz has previously given NBR the vague timetable that 3G phones, cards and services would be available “in the first half of 2010”.

Today, that timetable got vaguer still.

Head of Corporate Communications Bryony Hilless told NBR that the roll-out would occur over the whole of next year, area by area. There is no more specific timeline at this point.

A jump behind
2degrees has previously told NBR that its 3G network would feature HSPA technology, which tops out at a theoretical speed limit of 7Mbit/s (real-world speeds on all carriers are usually less than half that, and dependent on factors such as the number of users on the network at the same time, and the quality of your connection).

Telecom and Vodafone are in the process of limited trials of HSPA+ technology, which will boost the speed of their respective networks to a theoretical maximum of 21Mbit/s with a compatible data card or cellphone (that is, equivalent speed to a landline DSL connection).

Today, 2degrees chief executive Eric Hertz would not comment on the specs and speeds of his company’s network upgrade, but did say that “It’s worth noting that theoretical maximums are not a good indication of actual customer experience or the quality of the final products and services,” and that the speed of the “underlying pipeline” - or backhaul, in industry-speak - was just as important a factor.

2degrees does piggyback on Vodafone’s network outside main centres, giving it potential access to Vodafone’s 21Mbit/s upgrade.

Bids now open
Separately, NBR understands that 2degrees has released an RFP to extend its network beyond the current areas (Auckland, Wellington, Christchurch and Queenstown). Outside those towns, 2degrees customers roam on Vodafone. Terms of the RFP are confidential.

2degrees has spent around $250 million on its network and other set-up costs so far. For the past six months, it has been raising money to expand its own network of cell sites, and to fund co-location with other carriers.

NBR understands that 2degrees will expand its own network centre by centre as capital allows.