Reynolds slams High Court action, says Vodafone will share costs
Telecom (NZX: TEL) chief executive Paul Reynolds says Vodafone's mobile network interference suit was “a piece of nonsense from start to finish” and that Vodafone will contribute to the cost of installing extra filters.
Earlier this morning, the two carriers announced a settlement under which Telecom will delay the launch of its new 3G mobile network, XT, from May 13 to May 31. During the fortnight, Telecom will install extra filters on the network. A High Court Justice had been due to rule on Vodafone's application to injunct XT at 12 noon today.
“Any notion that Telecom doesn’t know filtering is absolute bunkum”, says Dr Reynolds.
Telecom has been installing filters on XT cell towers since the start of its 3G roll-out, says the Telecom boss, and now has more than 1000 in place (Telecom has around 900 masts, but some have no filter, and some multiple filters).
“It should never have come to court ... Telecom had a budget for filters [for XT] from the start. We’ve got world-class radio engineers.”
Dr Reynolds says there was nothing unusual about Telecom’s XT roll-out programme, which did not see filters attached to every transmitter from the get-go. “You don’t just filter the whole country. That would degrade coverage for rural New Zealand [as well as dampening interference, filters impact on a cell tower’s reach].”
Telecom wanted to identify interference issues on a site-by-site basis, says Dr Reynolds, then cooperate with Vodafone engineers to solve the problem. “You only spend your budget on sites where you identify interference.”
Vodafone maintains that inadequate filtering was degrading its voice service, losing it customers, and imperilling emergency services (a claim denied by Telecom’s lawyers), and told the High Court that XT should not launch until these issues are resolved - and did land some good jabs in court yesterday, raising at least the possibility of an injunction being granted.
Dr Reynolds says the dispute could still have been settled amicably. “We’ve always said to Vodafone: ‘Tell us any issue and we’ll fix it’.” Interference is a fact of network life and network construction, says Dr Reynolds, and telcos around the world routinely address it through company-to-company processes. Both sides agreed on the need for filtering, but not a timetable, or which side should pay.
Although Dr Reynolds sees his company in the right, Telecom settled the case, seeing a two-week delay in XT’s launch as a price worth paying to rid it of Vodafone’s High Court action, and to answer a request from the Justice, in Dr Reynolds’ words, for both sides “to sort it out”.
Dr Reynolds reiterated comments from Vodafone chief executive Russell Stanners that terms of the settlement are confidential. But he says that as Telecom extends its filter roll-out under the terms of the settlement, “there will be some circumstances in which we share costs”.
Dr Reynolds was dismissive of Vodafone’s assurance to NBR that the two companies had been constant top level contact on the issue.
“Give me a break. The first I heard of it was late last week,” says Dr Reynolds, of Vodafone’s threat to go legal. “They finally came to the table two days ago”.
Talks between engineers have gone on over the past two or three weeks, says Dr Reynolds.
Dr Reynolds has used strong language throughout the case, saying "This is a sign of desperation from a global giant," when Vodafone's suit was first announced last Friday.
Mr Stanners, who was in a notably more upbeat mood when he spoke to NBR this morning, would not be drawn on Dr Reynolds' hyperbole.
The Vodafone chief executive said he was pleased that both sides had reached an agreement for the interference issue to be resolved before XT's now-delayed launch.
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Comments and questions36
Vodafone upped the amps on their mastheads, this caused their frequency to expand and interlope on the upper range of Telecom's frequency. They acted like they had exclusive rights to provide a 3G service by trying to make Telecom turn off its own because THEY failed to account for a competitive network being installed. Shortsighted of Voda. Telecom didn't make that mistake hence no dropped calls on their network. Voda have only delayed Telecom, XT is a far superior frequency, handsets are more numerous and the much vaunted iphone doesn't have a 900MHz receiver which is why THAT one doesn't work outside 2100. It does however have an 850 receiver....
Enjoy the competition, we the users will be the winner.
you really don't know anything do you? All Vodafone 3G phones work on 3G and 2G. They're backwards compatible. Try that with Telecom - oh wait, you can't because they keep changing technology. Sorry, if you want backward compatible, you'll have to carry two phones.
Telecom has publically said it won't be faster than Vodafone. Sure the network might be 14.4mbps but there are NO DEVICES THAT RUN THAT FAST.
Also, to help with your maths, 14.4 is twice as fast as 7.2, not three times. You're wrong again.
a dropped call is a dropped call no matter where you're calling from - what a moot point. No network can take over a call thats dropping. They are different frequencies and if the handsets not compatible thats the end of it. No phone works on 2G and 3G. Get with the program. iphone works on XT tho... heh heh
Telecom lost, pure and simple. Telecom is installing filters. Telecom is delaying its launch....
the rest of it is PR spin.
Won't make any difference, they only stand to lose customers and revenue. It's funny that Vodafone only decided to pay to put filters on Telecom cell towers now... Guess they don't rate their customers service experience as important.
Hmmm Telecom lost because Vodafone decided to delay action about interference affecting 111 calls for 6 months so it could delay the XT launch?
Good on you Vodafone, nice to see you put your customers first...
Partisan comments from both sides of the Vodafone / Telecom trenches.
What I can safely comment on is that a good UMTS850 network is a joy to behold.
In Australia, Telstra's 850 UMTS (NextG) is awesome. Good coverage, few dropouts, data connections that feel like ADSL and a good list of supported devices.
Vodafone's UMTS 900 is somewhat of a gamble and could well be the CDMA of the next generation (technically fine, but not enough handset support).
en.wikipedia.org/wiki/List_of_UMTS_networks
Shows that 2100mhz is the worldwide standard - no surprises there... but 850mhz looks like it's quickly becoming the longer-distance frequency of choice around the world.
I'm not surprised that Vodafone is worried. They might be big, but I'm not convinced that they're big enough to carry a frequency all by themselves.
come on buddy - what company doesn't put its PR spin out there? ever seen an ad on the telly? lol!
an 'out of court settlement' isn't necessarily a win/loss situation here.
perhaps vodafone backed down due to dis-satisfied rumblings from all corners. it could be telecom backed down because its launch window remained open. perhaps one or the other felt their case was the lesser on the day.
either way its got to be good news for all surely? vodafone get two weeks reprieve, telecom get to launch within their orginal time frame.
heres looking forward to the mobile wars to come and the spin-offs it'll have for us lowly plebs!
Voda are bullies and its their network that is incompatable with any other networks. T/coms network is more up to date and able to handle another network at the same time. Voda are just packin themselves and are throwing their weight around. Go Telecom!!!
I agree with other comments, the biggest problem here is the delay, telecom has already had to "show their hand" in respect to their marketing, of which now provides vodafone a chance to react and combat telecom with their own marketing the offers,
in that respect, Vodafone wins the points in this battle..
On the technical side, I dont think it makes much difference, telecom has the upper hand of having a new "fresh" network...
he says “We’ve always said to Vodafone: ‘Tell us any issue and we’ll fix it’.”... Quick Tui moment while I refer back to the Telecom press release that says:
"Vodafone's technical problems with coverage and other issues were substantially of its own making" and "They are now reaping the cost of this and other poor technical decisions and attempting to lay them at the feet of Telecom".
Well, duh. The problem was on your network and it's your problem to fix.
How's your bonus shaping up Dr Reynolds? Looking at the wrong end of your KPIs?
I think Paul Reynolds comes our of this wih a lot of credit. I am no fan of TEL but it's great to see him showing strong leadership.
I think Paul Reynolds has been open and upfront from the get-go. As the article indicates, Telecom has been fitting filters from day 1. The real question here is why dont vodafone already have them fitted?
I think Vodafone settled because they worked out that they were finally being rumbled as the greedy multinational monopolists they really are.
There's a lot of people who'd previously bagged telecom now starting to see Telecom as the victim here and the XT network is now in the minds of most New Zealanders, many of whom are sick of being shafted by Vodafone for poor coverage and having to pay for support out egypt.
So what if Vodafone get a 2 week repreive, the real fact here is that customers have a long, long memory and Vodafone are probably going to loose a shedload of these customers.
I take my hat off to Paul Reynolds and his team, they've played it straight and honest whereas vodafone have shown themselves to be anything but.
XT is shaping up to be the best improvement in mobile for a long time. No wonder Voda are nervous.
They claim their customers are cancelling contracts and blaming Telecom. I suspect ther is some truth in that - perhaps Voda's customers are sick of average service and bad customer experience from a global giant who only wants to rake in the dollars.
No surprise they are cancelling contracts in favour of XT who are willing to push technology forward for NZ consumers!!
Remember Voda are lobbying to throw 'a couple of dollars in the pot' to the government to avoid providing infrastructure in our country.
Go Telecom.
Telecom has choked again, they have only developed a 3G Network, that means no 2G network to take over a call if 3G drops. So if you drop a call with The XT network, thats the end of the call.
Telecom chose Siemens over Nokia for their network. Wheres Siemens in mobile terms these days?
Just remember Vodafone has been running their GSM network in NZ for the last 11 years, four of those with a 3G network.
And worldwide they have the manafactures support.
But heres the best part, telecom now have to pay for two different networks for the next 3 years that can't intergrate whilst some how continuing to find money to further update their new 3G.
I'll stick with my Iphone thanks
Good on you Nick - You stick with your iphone - cause it will work on the new XT network - and 3 times as fast - ah hah ha. You'll convert if you know whats good for ya!
Telecom's network won't be three times faster than Vodafone's as you allege. They already said they would be running at the same speed.
as for Vodafone putting filters on, I bet you've got your mobile phone wrapped in tinfoil... You filter at source, not at reception. Vodafone's argument was that Telecom was leaking. NZ Comms' argument was the Telecom was leaking. Telecom finally admitted that and has agreed to do the right thing.
This is a massive blow for Reynolds' leadership. He's come out swinging, calling Vodafone names and it turns out he was completely wrong. Instead of the problem being Vodafone's network it was his. He's now having to delay the launch, spend more and fix his own house. Not a good look when it's your second decision...
his first of course was to build a GSM network - and then to switch it off without ever using it. AMPS, D-AMPS, CDMA, GSM... what a nonsense.
It will be faster. Faster than Landline Broadband. Vodas' G3 was designed to run without competition hence its' filters (or lack of) are inadequate. Overall the launch is well ahead of the original launch date. Voda are shaking in their boots cause they know that 850 will blow them out of the water. Admitting that signals can leak is like admitting that airplanes may crash. Its hardly groundbreaking news but noone will admit that its true.T/com are up front and have no fear of big bullies like Voda. T/com are trying to bring the latest and best technology to NZers'. EMBRACE!!!
These 2 should get in the ring.
"We'll soon see Telecom has choked again, they have only developed a 3G Network, that means no 2G network to take over a call if 3G drops. So if you drop a call with The XT network, thats the end of the call."
Telecom is doing 2G and 3G actually.
Vodafone lost out with prepay by making customers pay to call them if they have problems. That's stupid right there.
If you do a little research I think you will find that most of these interference issues are dealt with by dealing with the transmitting end (in this case TEL's XT network). There is little Voda could have done.
From what I see, TEL knew about this problem way back in 2008 and chose not to do anything about it. They were caught by NZC and ended up having to fix that problem in the cities where NZC is building. And even at that point, they thought they could get away without dealing with the problem being experienced by Voda's customers.
Doesn't sound like a straight bat to me!
Comments that 850 UMTS will be the common standard obviously have done no research.
"850mhz looks like it's quickly becoming the longer-distance frequency of choice around the world."
Just check GSMARENA and you will see that they're are only 70 devices with W-CDMA 850 and 2100, and 60 devices with W-CDMA 900 and 2100. There are some that are 850/1900/2100. Also, the majority of the world excluding North and South America run on GSM 900, that includes Africa, Europe, Middle East, and most of Asia which means that most of those countries will eventually use W-CDMA 900 networks to improve coverage. There are already at least 9 mobile operators overseas excluding Vodafone NZ that are using W-CDMA 900 networks and the EU has just announced that mobile operators would be able to use the 900MHz frequency for 3G so it will be more prevalent in Europe especially.
So, there will be more 900/2100 networks than 850/2100 based on the fact that there are more 900GSM networks than 850 GSM networks. Also note that most of the handsets released lately are coming with 900/2100 3G frequencies.
"Vodafone's UMTS 900 is somewhat of a gamble and could well be the CDMA of the next generation (technically fine, but not enough handset support)."
Based on the fact mentioned above, I really doubt that UMTS 900 is somewhae of a gamble. Handset support will improve as can already be seen. So 850 is not a superior frequency. I will admit Vodafone should build 900UMTS sites in their urban areas to improve in building coverage, which they may do. Who knows.
"Good on you Nick - You stick with your iphone - cause it will work on the new XT network - and 3 times as fast - ah hah ha."
Actually how can the iphone run 3 times faster if the iphone only supports up to 3.6Mbps. Even though the XT network will support 7.2Mbps the iphone wont be able to go above 3.6Mbps, so I hardly see the iphone working 3 times faster, except of course in areas where Vodafone is using 900UMTS, where the iphone drops down to GPRS.
"Vodafone lost out with prepay by making customers pay to call them if they have problems"
In regards to charging for customer service, the three big providers in the UK do this as well. Just check out this page from O2 in the UK.
Hi Nick - I dont know where you get your facts from you are pretty much all wrong. Lets take a closer look:
You say "Telecom has choked again, they have only developed a 3G Network, that means no 2G network to take over a call if 3G drops. So if you drop a call with The XT network, thats the end of the call."
Wrong: 2G to 3G handovers cause approximately 40% of calls to fail. On most mobile networks failures occur in the network core which is typically common to both 2G and 3G cellsites - if 3G fails 2G usually does too. By going 100% Telecom have actually done the smart thing and will probably offer a significantly more reliable network than Vodafones, which if the various comments being bandied around the blogsphere are anything to go by isnt very reliable at all.
You say "Telecom chose Siemens over Nokia for their network. Wheres Siemens in mobile terms these days?"
Telecom actually chose Alcatel Lucent who have an impeccable track record. Dunno where you got Siemens from??
You say "Just remember Vodafone has been running their GSM network in NZ for the last 11 years, four of those with a 3G network.
And worldwide they have the manafactures support."
Telecom built the first mobile network in New Zealand. Telecom has had a 3G network since 2000 with CDMA (if you are in any doubt about this check the ITU's classification of 3G). Telecom has nearly a decades experience in offering 3G. Vodafone are still struggling to get it right after 5 years. Moving to 900Mhz 3G see's Vodafone backing a technology with virtually no support whilst XT's 850Mhz 3G has had a huge amount of support thanks to a massive installed base of mobile operators supporting it - only 7 support 900Mhz 3G
But heres the best part, telecom now have to pay for two different networks for the next 3 years that can't intergrate whilst some how continuing to find money to further update their new 3G.
Actually I'm guessing here, but it seems likely that Telecoms CDMA network is a sunk cost so can be operated at minimal cost. The XT network is also built. Vodafone still have to fork out $$$ for their network upgrade using a relatively unsupported technology. With Vodafone ordering all their country level operations to cut costs as the recession bites I wonder how committed Vodafone New Zealand can afford to be to any 3G upgrades.
I'll stick with my Iphone thanks
You stick with your iPone on Vodafones network - chances are you'll be using it as a 2G device most of the time. XT is 850Mhz which the iphone supports natively. On XT you'll be high-speed 3G.
"Moving to 900Mhz 3G see's Vodafone backing a technology with virtually no support whilst XT's 850Mhz 3G has had a huge amount of support thanks to a massive installed base of mobile operators supporting it - only 7 support 900Mhz 3G"
While the fact that only a few operators support 900Mhz 3G "now" Europe is already starting to build 900Mhz 3G networks, that would be what about 48 countries of the top of my head once all the european countries have their 900 UMTS built. Also, if 900Mhz is a technology with no support why are those with GSM 900 networks planning on building networks with 900 UMTS, that and the fact that every device that has been announced this year includes 900/2100 UMTS/WCDMA?
Lets inject some facts back into your speil as it seems to contain a lot of inaccuracies.
"Comments that 850 UMTS will be the common standard obviously have done no research."
I suspect they probably have done their research - GSM arena is a great site but the GSA (GSM Association) has figures that tell a vastly different story and are much, much more accurate.
"So, there will be more 900/2100 networks than 850/2100 based on the fact that there are more 900GSM networks than 850 GSM networks. Also note that most of the handsets released lately are coming with 900/2100 3G frequencies."
Actually there are over 400 850 devices and just over 100 supporting 900. You also compare 900GSM with 850GSM - XT is not 850mhz GSM, it is HSPA 3G not 2G GSM. There are only 7 900Mhz operators globally but dozens and dozens of 850Mhz 3G telcos. Looks like you are wrong again (but hey dont let the facts get in the way of a good story)
"Based on the fact mentioned above, I really doubt that UMTS 900 is somewhae of a gamble. Handset support will improve as can already be seen. So 850 is not a superior frequency. I will admit Vodafone should build 900UMTS sites in their urban areas to improve in building coverage, which they may do. Who knows."
Actually the facts above show 850Mhz 3G handsets already have a massive lead and whilst I agree that attributing one frequency as being superior to another is silly, 850Mhz does offer vastly superior coverage to the 2100Mhz spectrum Vodafone use in urban settings (it comes down to physics 101 stuff - the lower the radio frequency the more coverage). Making matters worse, Vodafone have to continue to support the estimated 60% plus of their subscribers (most of whom are in metro areas) that have GSM handsets. They simply dont have enough 900Mhz spectrum to build out urban 3G 900Mhz in the foreseeable future without causing major grief to most of their subscribers.
'Actually how can the iphone run 3 times faster if the iphone only supports up to 3.6Mbps. Even though the XT network will support 7.2Mbps the iphone wont be able to go above 3.6Mbps, so I hardly see the iphone working 3 times faster, except of course in areas where Vodafone is using 900UMTS, where the iphone drops down to GPRS."
Yup you are right but the next iPhone being launched in June will probably run 3 times faster on XT and compared to 2G GPRS (which most Vodafone iPhone owners seem to spend most of their time stuck on) XT will seem blisteringly fast on todays 3G iphones.
"Vodafone lost out with prepay by making customers pay to call them if they have problems....In regards to charging for customer service, the three big providers in the UK do this as well. Just check out this page from O2 in the UK."
Just because this is done in the UK doesnt make it right here - Telecom by the way dont charge their prepaid customers for support.
okay now we're talking accurately
Even with 48 900 builds scheduled (most havent started), that'll still only just see 900Mhz catching up to 850.
In the EU 700- 859MHz specturm is being freed up as analog TV switches off and most EU telcos want to continue to support GSM 900Mhz (where much of their bread and butter revenues lie). Many of the future builds you talk about will probably support 850Mhz
Regardless of this, 850 is here now - 900 still has a long, long, long way to go before any catching up is done - See no argument really
Yes, I do know that there are about 400 devices with 850, I too have read the GSA, its where I pulled the information regarding the current networks with 900Mhz UMTS, but I was more aiming at devices that are 850/2100 compared 900/2100, since people will need the 2100 for 3G roaming in countries that have not yet setup There is no doubt that 850 UMTS has a large lead in devices, but as I said, thats what the situation is "now". Since, European and most likely the Middle East, Africa, and Asia will "probably" build 900 UMTS networks that lead in devices "could change" in 6-12 months time.
cellular-news.com/story/36722.php
Good webpage to look at.
Also, I dont believe I even reffered to 850 GSM. I know XT is not a GSM network. I may have forgotten to put "UMTS" after 850, but i thought it was obvious I was talking about 850 UMTS and not 850 GSM.
"They simply dont have enough 900Mhz spectrum to build out urban 3G 900Mhz in the foreseeable future without causing major grief to most of their subscribers."
I dont know how true that statement is, I can neither deny it or accept it. All I know is that European countries are building 900 UMTS networks in both rural and urban areas, so I take it they obviously seem to think they wont have that problem. But who knows, you may be right in that respect.
Regarding the iphone speeds. I only used the current iphone as thats what was being reffered to in the other comment as it could be that the new iphone come out in both versions, 900/1900/2100 and 850/1900/2100 similiar to some of the latest Nokia devices. But as there hasnt been any news regarding the new iphone, I focused on the current one.
"Just because this is done in the UK doesnt make it right here - Telecom by the way dont charge their prepaid customers for support."
I am aware that Telecom dont charge their prepaid customers for support and I do understand that just because its done in the UK doesnt make it right here. I can see both sides to that story. I can see why they did it which was to ensure that people with "non-important " questions such as "what time is it?" or how to change settings on their phone, as this just blocks the lines for genuine customer enquiries. I also understand it from the customers perspective. I dont think people should have to pay for genuine customer service, especially to an Egyptian call centre.
Anyways, I guess its useless arguing 850 vs 900. Its really more a wait and see game. Most likely in a year or two it wont matter as a lot of networks will be moving to LTE using most likely the 2600Mhz.
The verb relating to injunction is NOT injunct... it is ENJOIN
"A High Court Justice had been due to rule on Vodafone's application to ***injunct*** XT at 12 noon today."
I find it interesting that people think they've been getting shafted by Vodafone. Vodafone have been ground breaking in delivering lower cost services in Mobile, Broadband and Home Phone so consumers have a choice over the previous Telecom monopoly. FreeWeekends, Txt2000, Bestmate, buying ihug to deliver lower cost broadband...
What have Telecom customers had - at the end of May they'll be on their third mobile they've had to buy in 3 years just to stay on their network, they're already on their second phone number...
Telecom are re-active to Vodafone marketing and price points rather than leading it.
iphone will never run at very top speed dispite what the network can support. Maximum network speed is a thoretical top speed. You'll see dorkslayer. Line up two iphones on each network and you'll swear that the XT appears almost 10 times faster. In reality (not theoretical) the XT iphone will be around 3 times faster. Wait and see baby ...
You can keep your old number on XT, and you don't have to convert to new network. Old network will be supported for many a year.
This makes for some pretty funny reading. Self styled experts throwing so called 'facts' and 'figures' back and forth. It's very entertaining.
Why not let the folks at NBR report on the real facts...
I think you will find that Telecom was the first to offer cheaper txt plans not Vodafone. Both companies have offered certain deals over the years and the other has reacted with something similar. Thats just how the world works isnt it?
The only piece of nonsense here is Paul Reynolds. Telecom has made bad tech choices time and time again! Sorry, did anyone notice the 50+Million dollar roll out of a network that did not even launch - Telecom UMTS 2100....
Unheard of to actually choose the righ technology after 15 years and then install the wrong band?
And you expect me to believe the filter story *yawn*
Stanners is arrogant and ignorant, but Reynolds lies.
"Vodafone have been ground breaking in delivering lower cost services in Mobile, Broadband and Home Phone so consumers have a choice over the previous Telecom monopoly. FreeWeekends, Txt2000, Bestmate, buying ihug to deliver lower cost broadband..."
Low cost broadband? Lower cost home lines? Lower cost mobile? Put down the pipe mate, Vodafone rips us off with the best of them. They only thing they do have going is Free Weekends (* to customers on the same network), Text 2000 (* to customers on the same network), Best Mate (* to customers on the same network).
Hmm, it seems Vodafone requires that everyone you wqant to talk to be on their network. Funny that.
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