Telecom to turbocharge XT by Christmas
Even before its 3G network’s launch, Telecom has announced plans to triple XT’s speed to 21Mbit/s - that is, faster than most landline DSL connections - by year’s end. Vodafone hits back with its own upgrade plan, running to 4G. Welcome to the mobile arms race.
Some at Vodafone and Telecom (and Telecom especially investors) would like to sit back and reap the benefits of a cap-ex splurge that has seen the two telcos spend $1 billion between them on their respective W-CDMA upgrades.
But now that the two telcos are on the same technology track, allowing head-to-head comparisons, and making it easier for customers to hop between their networks (read: Buy an iPhone from Vodafone, run it on Telecom), the pressure is on move things along.
Telecom’s new W-CDMA 3G network, dubbed XT, will launch May 13 with a 7.2Mbit/s data card, and a selection of phones that can connect at the same theoretical maximum top speed (14Mbit/s connections would be possible too, although they remain hypothetical, given the lack of handsets and data cards to support them).
Mr Gourdie likes to use a music download benchmark. A 5MB track that would take up to 800 seconds (13 minutes) to download on Telecom’s current CDMA network could be sucked down to your phone in as little as 5 seconds on the XT network.
But even before the ink was dry on yesterday’s announcement, Telecom head of retail Alan Gourdie said the telco plans to boost XT’s speed to 21Mbit/s by Christmas.
The telco says the 21Mbit/s turboboost is included in the $574 million allocated for its transition to W-CDMA.
Landline speed, mobile pricing
That’s a dizzying speed. If you manage to hit it - the vagaries of cell tower proximity, network loading and weather allowing (which will combine to often slow you down by half) - you’ll be surfing at faster than most ADSL or ADSL2+ landline connections allow.
You could also go broke very fast if Telecom does not alter the way it charges for mobile data. Like Vodafone (which has started to tilt in the other direction), the telco still charges a high premium for broadband on the go, better suited for the days of sub-1Mbit/s connections.
However, Mr Gourdie would not be drawn on mobile data pricing yesterday.
Vodafone strikes back
Vodafone chief marketing officer Mark Rushworth says his telco, which already has 500,000 customers live on its 3G network, due to be completed in May, has its own upgrade in progress.
“We're going to skip 14Mbit/s and go straight to 21Mbit/s. We’re currently trialling 21Mbit/s and will launch it at the end of a successful trial.”
Mr Rushworth would not be drawn on how long the trial might take, but said that its upgraded 3G service would go live ahead of Telecom’s slated pre-Xmas 21Mbit/s upgrade: “We’ll maintain our lead in coverage and speed”.
Mr Gourdie responds: “We aim to get ahead and stay ahead”.
More, and more, upgrades ahead
Don’t expect the upgrade madness to stop at 21Mbit/s.
Across the ditch, Telstra has already upgrade to 43Mbit/s in selected urban areas - the maximum speed that can be hit by 3G.
Vodafone country manager Russell Stanners has already told NBR that his company could upgrade to an LTE (long term evolution) or so-called 4G network as early as next year - which could double theoretical top speeds again.
Telecom’s Gourdie also name-check’s Telstra’s 43Mbit/s upgrade, and talks admiringly about the LTE upgrade that US carrier Verizon Wireless (part owned by Vodafone) already has underway in the US.
Want to play? You need the right phone
What does the mobile arms race mean for you?
Much better speed, fewer drop outs, better voice clarity, and every expanding roaming options (a year ago, Telecom couldn’t even let you take your own phone to Australia, now it will offer voice roaming to 206 countries, and data roaming to 110, leap-frogging Vodafone. Again, there’s still no pricing, though Mr Gourdie pledges it will be easy to understand, and transparent).
But it also means you have to be wary about being locked into too long a contract with your present mobile phone.
Telecom’s XT and Vodafone’s 3G networks both use a technology protocol called HSPA (high-speed packet access) to wring 7.2Mbit/s from their W-CDMA networks.
To take advantage of that mobile bandwidth, you need a cellphone, data card, or netbook that supports HSPA.
Similarly, later this year when both telcos will the next W-CDMA protocol up the food chain, HSPA+, to boost their mobile bandwidth to 21Mbit/s, you’ll need an HSPA+ compatible phone or data card - which would mean shelling out for an upgrade. In an arms race, everybody pays.
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Comments and questions34
So you mean to tell me that after all that hype and tripe, Telecom is launching with a network that's exactly the same as Vodafone's?
WTF?
What happened to "three times faster"? What happened to "world class"? what happened to "better than Vodafone".
Telecom, you've dropped the ball.
I purchased a telecom cdma handset cause i was told by a store owned by telecoom that cdma is the future and nothing will beat it. Now i read telecom have rolled out a wcdma network is this company kidding me
Telecom has been talking about its network being the largest 3G network and the fastest 3G network and now they pull a stunt like this. I'm appalled, Telecom. Your own website says your network will be three times faster than the competition. Telstra can do it - why can't you?
Shabby stuff.
I'm waiting for NZ Communications to launch.
If only Telecom was paying as much attention to providing decent internet landline speeds - instead of overpromising and overcharging for one of the world's worst ADSL services. ADSL2 is just a joke!
Am I incorrect in believing that Telecom's new network is solely for urban areas? Why isn't anyone mentioning this? Vodafone will upgrade rural areas to 900MHz UTMS, isn't telecom's 850MHz just going to be GSM in rural areas??From the reading I've done it seems to mention 850MHz GSM, not UMTS.
Telecom's new Network will be 850Mhz UMTS, with *some* cities having 2100Mhz UMTS for extra capacity.
There is no GSM component on the upcoming XT Network at all.
Before 7.2Mbps there was 3.6Mbps. Whilst previous smartphones supported 3.6Mps speed in hardware but did not have decent CPU power or a browser engine capable of rendering web pages fast enough. Only the iPhone 3G, and the Google phone, have the right combination. The E71, whilst it supports 3.6Mbps and a good browser, but a massive let down with the low-resolution screen. Even the HTC Touch series, whilst it support 7.2Mbps speed, it is being held back by the inadequate browser in Windows Mobile 6.1 software.
So the real experience users will get from these "turbocharged" networks will be from add-on data cards or laptops and netbooks built-in 3G that has the CPU and browser capable enough.
Vodafone's network is GSM, not WCDMA. There's a difference.
Vodafone's current "3G" coverage only covers 70% of where New Zealanders live and work. When Telecom announced the 97% coverage from their 3G network, vodafone shat itself and started pumping millions into matching, not exceeding, just matching, what Telecom has already pledged.
When Telecom announced the 21Mb/s speed of HSPA, which is three times faster than what Vodafone CURRENTLY has available, Vodafone shat itself and started spending millions on matching, not exceeding, just matching, what Telecom has already pledged.
If you bother to actually read what Telecom have said, you will see that their 3G network will be WCDMA-850 in 97% of where New Zealanders live and work.
And the coverage will still be better than Vodafone's. It alwyas has, and it always will be.
Battle of the fanbois ftw.
@ Josh - Vodafone's Network is both WCDMA (aka UMTS) 2100Mhz & 900Mhz & also GSM 900Mhz & 1800Mhz.
Both Telecom & Vodafone have indicated 97% Coverage of where New Zealanders live, work & play - so I'm not sure how you get "Telecom have better coverage & always will".
It's important to note though, that there are places in New Zealand where Vodafone have no coverage & Telecom do, much the same as there are places where Telecom have no coverage, but Vodafone do. This is to be expected - as both Vodafone & Telecom do not replicate each others network coverage - which is a good thing.
As for speed advantage - lets see if the Red Team win the race for 21Mbit Deployment - my bet is they will.
@ Josh - Telecom's new network is a catch-up 3G Network - finally they are going to be providing a network that meets Vodafone's standard & International qaulity.
For the record, Vodafone have had 3G WCDMA since 2005, nearly 4.5 years LATER - Telecom finally catches up - hardly what I would call bleeding edge.
Don't give up your day job Vodafone NZ have had WCDMA coverage since 2005
Vodafone's network is a patchwork of 2G 900Mhz, 3G 900MHz and 2100Mhz. Telecom's is a seamless 850 coverage with 2100 in metro areas. 97% of where NZers work and live covered as soon as the network launches. Speeds as promised, VF have to play catch up. The winners are the users, wait and see who comes out with what, make yr minds up when the networks are both out and functioning.
Vodafone are not playing catch up here, it's Telecom who are catching up, as Vodafone have had a WCDMA since 2005!!
Vodafone also uses 2G 1800Mhz GSM, for capacity reasons, as has been stated already above. Vodafone already offer 7.2Mbit **now**, in some areas, Telecom do not **at this time**, so yet again, more proof that Telecom are playing catch up.
I agree - the users are the winners though & finally we will see a head to head battle between Vodafone & Telecom, of which we have not experienced before in this country - thanks to Telecom finally building a network that meets the majority of what the rest of world have been offering for years.
Congrats Telecom for finally catching up.
LOL, Look @ all the VF fanboys scramble into attack mode. A point to make is VF only have 3G in some main centres since 2005, were as XT will be nation wide. So in short Josh is actually rite in a way..
I would say josh is correct insofar as the fact that Telecom's pledge to be three times faster than VF was anounced before VF anounced their own upgrade to 21Mbps. This would mean that Telecom's statement applies to current networks, which when XT is up and running at 21Mbps - will make this statement correct. I seriosuly don't care either way who has the better network because who wins in the end? The end user who will most likely go with the better service.
having worked in mobile design engineering for both VF and telecom, what you the public do not realise at is ALL these companies are virtually identical in terms of the technology in the cell towers. The services differ vastly though.Telecom coverage outstrips VF by about 25%. VF has flashier handsets and roaming. The latest race just brings the companies closer together than ever....you would be shocked to find out how freindly the major two telcos are behind closed doors, but you the public are not meant to know that, you are supposed to be the marketing fodder that falls prey to the shiny handsets ands fast speeds on offer.
The ironic thing is this - there are no devices that currently support 21Mbit - so it's all just lip service from both telco's & in reality, you would be *very* lucky to consistently get half of the theoretical speed, as there so many variables that affect throughput.
What a load of nonsense! Both Telecom & Vodafone advertise 97% coverage of where NZ's live work & play. Prior to Vodafone's current upgrade, Telecom may of have had an edge (certainly not 25%) but that has changed vastly, since the 900Mhz UMTS Extended 3G Deployment by Vodafone.
Visit the link below - check out the current coverage / compared to planned coverage by May 2009:
http://3gmadeeasy.vodafone.co.nz/3G_coverage
The PDF files provide more detail for cities as well.
I think thats the key "currently"... Who knows what the future will bring..
"Don't give up your day job Vodafone NZ have had WCDMA coverage since 2005"
Maybe it's changed, but until a month ago Voda had no 3G coverage where I live - in central Christchurch.
Not very impressive.
Both companies advertise that they will have 3G in 97% of where kiwi's live and work (and play, according to VF) by June. This is a target required of them by the Govt and Telecom decided to do it by June 09 (having missed their original network deadline of Nov 08 they needed something good to put in the press release) while VF decided to match this timeframe - there's no problem with that.
Vodafone's idea of 3G means a combination of 1.8, 3.6 and 7.2 Mbps capability in various places, so I shan't be holding my breathe for their 21Mbps upgrade. I'd settle for a 7.2Mbps upgrade for the North Shore, 1.3 - 1.7Mbps is the best I can get currently. I'm looking forward to speedtesting Telecom's network...
While Telecom are scurrying around implementing 21 Mbps HSPA+, Vodafone have tested LTE (4G) last year and have released press statements about their LTE plans as far back as May 2008 (Dominion Post, MyMobile magazine). My money is still on the Red Team.
Let's not get too excited about Telecom's promises, let's see what they deliver.
Doing speedtests between the vodafone NZ and Telecom XT network is not proof of much as Vodafone will have more 3G users per cell over telecom giving the impression the Telecom XT is faster. I would put my money in the red corner. 900mhz UMTS in the next 12 months will be 10 fold bigger over UMTS 850 due to the UE opening up the 900mhz band to UMTS. Vodafone also have alot more capacity across the A interface (2G speak) and UU (3G speak) Vodafone NZ have GSM 900/1800 UMTS 900/2100mhz.. Good luck to Telecom NZ they need it cause the red team does not have almost 400 million customers for no reason.
I'm a disgruntled VF user who can't wait until XT launches. They (VF) talk about global roaming, but they don't tell you it might take up to four overseas trips to get it to work because of the incompetence of their button pushing monkeys.
Sheesh, i don't want much - i'm a small business owner with a couple of phones. VF has (over)charged me horrendously over the last few years and i can't wait to be rid of them.
Thankyou, that was more or less my point.
I've travelled this country quite extensively, and there are many, many places around that my Telecom phone will work and my Vodafone won't. I've never come across any particular place in New Zealand that my Vodafone will work and my Telecom won't. Never.
I'll put it this way for all the VF fanboys: if you really love Vodafone, then by all means, knock yourselves out. No-one is forcing you to change, enjoy your crappy service, and remember when you're reading your bill to count how many times you called customer services and got charged for it. Fools.
Like Hammond said, I can't wait to put Telecom's new network to the test myself.
To Quote
"While Telecom are scurrying around implementing 21 Mbps HSPA+, Vodafone have tested LTE (4G) last year and have released press statements about their LTE plans as far back as May 2008 (Dominion Post, MyMobile magazine). My money is still on the Red Team."
Also keep an eye on Femto Cells! Currently being trialled by VF UK!
It's weird how people here are saying that Vodafone have really been doing everyone a favour when it's them that's de-leveling the playing field.
And what's this "CDMA" is not the future?
Where's the heroic "GSM" in "WCDMA"?
Let's put things into perspective
There are more places around the world operating at WCDMA 850MHz.
Telecom NEW ZEALAND, will have the fastest of any country running WCDMA 850MHz. Vodafone are releasing a network with theoretical maximum speeds that arn't supported by any mobile manufacturers while Telecom will and have manufacturers testing on the new network being released in December (see other articles)
Telecom will have 97% coverage of New Zealand ON 3G at the end of May while, Vodafone will just have 97% cell coverage with 3G available at main centres and limited 4G which, as I pointed out, is pointless until Manufacturers have tested it out. ...Like what they're doing on Telecom's. More-over, the same 3G network is capable of 30Mbps which is a full 9Mbps faster than Vodafones 4G network. Also, The same 3G network as around 100 less cell towers around the country and yet gives greater coverage for anything beyond 2G. Tsssk tssk Vodafone for misleading us all :(
It's weird how people here are saying that Vodafone have really been doing everyone a favour when it's them that's de-leveling the playing field.
And what's this "CDMA" is not the future?
Where's the heroic "GSM" in "WCDMA"?
Let's put things into perspective
There are more places around the world operating at WCDMA 850MHz.
Telecom NEW ZEALAND, will have the fastest of any country running WCDMA 850MHz. Vodafone are releasing a network with theoretical maximum speeds that arn't supported by any mobile manufacturers while Telecom will and have manufacturers testing on the new network being released in December (see other articles)
Telecom will have 97% coverage of New Zealand ON 3G at the end of May while, Vodafone will just have 97% cell coverage with 3G available at main centres and limited 4G which, as I pointed out, is pointless until Manufacturers have tested it out. ...Like what they're doing on Telecom's. More-over, the same 3G network is capable of 30Mbps which is a full 9Mbps faster than Vodafones 4G network. Also, The same 3G network as around 100 less cell towers around the country and yet gives greater coverage for anything beyond 2G. Tsssk tssk Vodafone for misleading us all :(
For those of you muppets claiming that vodafones current network is superior and or faster than telecoms - stop looking at stupid statistics and incorrect coverage maps and buy a vodem and a t-stick, use them for a few months in a few cities and you will realise that the current vodafone network is crap compared to telecoms. I own both a vodem and a tstick. The tstick i use for speed and coverage and the vodem i use when ive exhausted my bandwidth and need more data (at the cost of speed). the vodem is way slower in *EVERY* city i have used it in and coverage on the vodafone network in practice is noting like their coverage maps claim. Also important to note that when they claim 97% of where kiwis live its not 97% of NZ. ie/ approx half of NZers live in auckland!
What a joke telecom have 97 percent land coverage i cant stop laughing
Hey Guys!
It seems i have seen an battle of two groups here. One with VF and one with telecom side. I came from more than one company saying everythings commercially just to tell you guys what they can offer you. But I bet none of you guys have engineered these technologies at all. Well, I am one who designed adnd implement your network here and others abroad. All I can say, dont discuss technical issues here if you dont know how really it works. Just get rid of your phone or your internet connection if your not happy. Both companies have the rights to say what they say "COMMERCIALLY"even technically not atainable.
Cheers.
i like the new technology that Telecom release. i tried their phones every time i had the opportunity or the money to buy one. with Toll Free Numbers, for assistance, when i don't know what to do, the way for me to explore this new phone is open.
this is a strategy for holiday, that the product W-CDMA 3G network, dubbed XT will buy faster. if is that, i would like to find under the Christmas tree such a technology.
What a great news for all of us. We all want more speed for our internet on phones. But i must address a problem that i see, the security of the transmission. You need to consider that with greater speeds the possibility of security ricks are higher and then the Cloud Computing securing our networks need to work harder,faster, safer. At least now now streaming vid on your phone in HD quality will be the next trend:)
It's not my place to say if vodafone or telecom is better. I don't really like either, they both tell you, the customer, that they are 'the best' at what they do, but personally I'm using VoIP Phone Systems and I'm pleased with them. Network coverage is important, we are working every minute and for this we need reliable services that we can trust. If they are so great, maybe they will realize this and do something about it.
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