Vodafone to court: switch off Telecom’s XT network
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Papers filed yesterday in the Auckland High Court reveal the ambitious scope of Vodafone’s legal action against Telecom’s new mobile network - interference from which, it says, is losing it customers and threatening emergency calls.
Vodafone wants XT shut down, preventing its scheduled May 13 launch, and not fired up again until interference issues are resolved.
Telecommunications Carriers Forum chief executive Ralph Chivers tells NBR that, to his knowledge, all last-minute mediation efforts have failed.
The two telcos are now set for a High Court hearing at 10am on Wednesday.
In asking for an interim injunction to stop Telecom (NZX: TEL) using any of its W-CDMA (“3G”) transmitters, Vodafone’s solicitor writes that “Telecom has existing mobile telephony networks it can provide a service to its customers [over] even if an injunction is granted”.
By contrast, “Telecom’s actions are to prevent Vodafone from effectively operating its network” thereby giving Telecom an “illegitimate competitive advantage”.
Interference from Telecom’s new W-CDMA network (branded "XT"), which operates on the 850MHz band, is “preventing Vodafone from being able to provide effective and reliable [W-CDMA] service over its 900MHz network, which provides the majority of voice Vodafone’s services,” the carrier’s solicitor writes.
This “degrading, obstructing and repeated interrupting” of its service impacts commercially on Vodafone’s business, and Vodafone customers’ business.
In its statement of claim to the court, Vodafone says interference from XT means that:
- "Vodafone’s customer base is reducing". A 154% rise customer cancellations since Telecom began testing XT is cited.
- "Vodafone is being deprived of revenue from all current and potential customers."
- "Vodafone’s reputation is being seriously damaged by the interference from Telecom’s transmissions"; and
- "Vodafone is unable to reliably provide emergency services."
Vodafone’s application also quantifies further harm to the telco if Telecom is not prevented from transmitting over its XT network, including:
- "Vodafone will be prevented from capitalising revenue from calls which are intended to be made on the 900MHz network but which were unable to be made or connected, or which were dropped"; and
- "Vodafone’s ability to compete with Telecom for customers will be substantially impaired."
Telecom: Vodafone's problems of its own making
Telecom chief executive Paul Reynolds says his company - without admitting any interference - is willing to work with Vodafone on installing filters.
However, in its suit, Vodafone says it has been unable to reach commercial terms for installing filters. Dr Reynolds has characterised the issue of which side pays for filters as “open”.
Telecom has also produced a letter from the Ministry of Economic Development’s Radio Spectrum Management division, which states that the RSM has tested XT, and found that it operates within Telecom’s spectrum parameters.
Proxies for Vodafone have suggested that the MED has sliced the spectrum too thinly. The ministry says it won’t comment while the case is before the High Court.
“This is a piece of aggressive behaviour that betrays Vodafone’s insecurities about competition from Telecom’s new XT network," says Dr Reynolds.
The Telecom chief executive adds that, based on information he has received so far, Vodafone's interference issues are "of its own making".
Tuanz to Vodafone: call off the lawyers
Meanwhile, Telecommunications Users Association chief executive Ernie Newman tells NBR that it’s ridiculous that events have reached this point.
“These are everyday issues. Whether it’s a new radio, TV, or cellular, there are always interference issues when a new network established. They’re almost always resolved with discussions engineers,” says Mr Newman, whose organisation represents around 500 corporate customers.
“It’s hard to comprehend why lawyers were called in at the eleventh hour. The more disturbing thing is that they seem to have leapt into a legal battle getting anywhere near to exhausting other channels.”
Cynics have suggested that since Telecom ambushed Vodafone by announcing a month-early launch date for XT, the carrier has been looking for a way to slow its rival down.
For his part, Mr Newman notes that it’s barely over a month since Telecom and Vodafone stood “should-to-shoulder” to form the Telecommunications Industry Group, a new telco industry body designed, in Mr Newman’s characterisation “to repair the battered public image of the industry” (and which operates in parallel to the more technically-focussed Telecommunications Carriers Forum headed by the aforementioned Mr Chivers, to which Telecom and Vodafone also belong).
“But now, only a few weeks later, Telecom and Vodafone are embroiled in a High Court action that doesn’t seem to be necessary,” says Mr Newman.
“It’s like a throwback to the bad old days when telcos employed half the lawyers in the country”.
Vodafone’s 3G network, which already has 500,000 active customers, is due to be completed to 97% population coverage by May 31. Telecom’s 3G network, currently only open to a handful of trial customers and staff, is due to go live to 97% of population centres on May 13 with a 21Mbit/s turbocharge due by Christmas.
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Comments and questions25
This is better than watching Desperate Housewives on television.
All in the space of less than one week, Vodafone extinguishes all semblance of good will the brand has gained from it's customers over the years,
This will be studied in marketing papers in years to come.
Vodafone: The New Ugly Telecom.
We all used to think Telecom were the losers, and now I actually feel sorry for them. Vodafone have totally lost the plot on this one. Pull your head in and start acting like the market leader you (at least presently) still are.
I downloaded the final episode of this comedy/drama.
The customers all lose.
Firstly, Telecom have been testing their network for ages. If Vodafone had a problem they should have raised the issue months ago.
Second, this probably isn't too bad for Telecom (unless Vodafone have better lawyers than them), it certainly means their new network is getting talked about more!
boy the Telecom apologists are sure out in force today. And I love how they can all read court documents before they're tabled... in court! What a bunch of muppets.
I am no technologist, but I have an iPhone which I have been using for 4 months on Vodafone's network.
Up until 2 weeks ago, it was fine. Now I experience drop calls all the time.
I have no idea who's fault this is, but something has gone wrong somewhere.
I find it hard to believe that vodafone hasnt manipulated the timing of its complaint. Surely they were aware of 'technical issues' several weeks ago. I'm a vodafone customer and have no problems with my phone working.
what makes anyone think they didn't raise it with Telecom? NZ Communications was having the same problem it seems - Telecom clearly knew about the issue. They have a duty of care to make sure their network doesn't impact on existing networks under the international radio regulations... that's not been done here.
Voda's network system is over-subscribed. Currently it has 300 thousand+ more customers than it was made for.
That explains your iPhone drop-out.
That is their excuse so they can gain sympathy from exisitng cusotmers.
Poor old Voda. Caught with a network that ain't working correctly. So they blame others. Childish.
I'm currently with Voda. Come 2 months time. I won't be. It's a rubbish service.
Telecom have agreed to install filters in areas where NZ Comm's have their network - thereby admitting they are causing the interference, so why not do the same with Vodafone?
Surely Telecon can't be that tight for cash.
It is quite sad to see that instead of resolving the network interference issue with Telecom, Vodafone choose to take this to court. It just shows their sense of insecurity.
There is no denying the fact that the launch of the new network must have caused interference issues which was imminent as is the case with any radio frequency transmissions but, could have been resolved in a more professional manner.
Vodafone needs to grow up and stop acting like a two year old from whom candy has been snatched. They have a good customer base and need to ensure that they consistently improve the quality of their service and provide value for money offerings to ensure that they remain a market leader.
I have been a customer of Bell South/Vodafone since 1992 and until recently have found them to be a good supplier of both mobile voice & data. When I experienced a problem with my voice connection I was advised it was my phone (Iphone) so I recommisioned my Sony Erisson T600 and still experienced the same problem, then it was the SIM card so I purchased a new SIM card and back to the Iphone. To cut a long story short it eventually turned out to be a cell site problem which was fixed and some 5 weeks later voice problem fixed and a $$ credit offered and accepted.
NOW to the mobile data problem: having had a good connection from my Home Office for some 2 1/2 years this dropped to 2G and was painfully slow. Again it was my problem!!!! After some weeks (5 from memory) the upward jumping monkey finally received some attention and although the issue has not been fully resolved at least I have a reasonable connection until the next upgrade in my area in some 8 to 10 weeks time. My BIG gripe is not about the resolution but the fact that Vodafone are a Communications company that refuses to COMMUNICATE!!!!!! If you actually manage to contact someone who has a clue they get removed from that area and you start all over again. I am reluctantly staying with Vodafone for the present as I don't beleive that Telecom will be any better, however having said that, the next stuff will see me gone.
There is a whole lot more to this story than what is read here. Not to mention that the issues are being found on the 900mhz GSM network and not the WCDMA network as stated. Vodafone fail to let the public and court know that many of their issues are related to 2100mhz WCDMA in cities dropping back to GSM which does cause drop outs at times (this is due to poor coverage and penatration in buildings etc & nothing to do with XT). Also there are issues that Vodafone own that are not mentioned including "over powering" of mast head amplifiers on Vodafones sites which is highlighting the issues more. Telecom quite possibly are license wise ok here and they are installing filters (common practice) to eliminate any extra RF emmisions inline with technical agreements with NZ Comms (installing these filters is common with Radio networks so close together) Taking this to court has gained XT mobile a ton of free press and can I say Vodafone hardly has the worlds most robust network anyway, these issues heighten this!
I have been talking to some business friends etc re this whole saga, most are with Vodafone & have all noted performance has dropped off over the last two or so weeks, which makes us wonder whether Vodafone is potentially changing stuff in its own network to suit there legal arguement. I know that this XT network has been live for some time in my area, the major issues have only just started & that makes me suspicious. My 3G service has never been good & It often drops to GSM in the city. Telecom are certainly being portrayed as the perpertrator of all the problems but from my current & past experience I think there could be some dodgy stuff going on at Vodafone that is causing my issues as well. I am considering a move as I need a full 3G phone & i would prefer the same system every where as the 3G service in the city from Vodafone is poor!
telecom have always had the monopoly and have used bully tactics on other small providers not only in the mobile industry so now are being subjected to some of their own 'monopoly' medicine! go Vodafone.
grow up chaz, i love the telecom haters, and i used to be one, now im neutral, yea telecom has had a bad wrap before, but they are delivering a world class mobile service that vodafone CANT offer, their network just isnt good enough and now they are scared. and everyone knows it, just read the other comments, as has already been mentioned telecom will just be thankful for the free publicity for XT,
ill be getting a telecom phone, which i never though id say, but i go withwho has the best network, and XT is it, voda are just worried about losing 66% market share on their already over loaded network.
come on chaz what sort of an attitude is go vodafone for trying to stop telecom bringing NZ up to date so they can charge people to use their out of date network.
get over yourself and your telecom hate, yea they have been bad in the past but the last couple of years they have been puttin in the effort which is more than i can say for voda, who have marginal 3g coverage, average as landline and BB service.
dont get me wrong i am a current voda cust and have been for a while, but until they stop crying at other telecos for outdoin them im gonna leave them i prefer a company like telecom who have said, hey our competitors have something better lets match them. rather than our competitors have something better, lets try to stop them from releasing it.
they are scared, and we know it. im sorry but ill be supporting the company taking NZ communication into the future not the company trying to hold us back for their own profiteering.
vodafone are a massive international company and if they wanted to could install a network to rival telecoms and it would be no where near the financial burden it is for a comparitevely small company like telecom to do.
but good work chaz im sure youd still be on dial up internet as long as it was vodafone and not telecom.
My perception of vodafone has totally changed from this. Vodafone used to be the "cool" network, but theyve rightly screwed that up now.
As pmurder said before, vodafone have been reaping the rewards of being the only GSM/3G network in NZ for a long time. Now that thats going to change, voda are scared.
Vodafone: You had your chance to keep NZ up to date, and you failed. Your coverage sucked anyway (lets be honest - telecoms 027 network was way better) so dont go blaming XT, and... we all know your ripping us off with the iphone so drop it to what its really worth!
Damn you Vodafone! Give me back the power on my iPhone that I should have enjoyed for the past 3 months. I need consistent signal and performance. I won't get a 900mhz phone unless it's really really neccesary, never ever. I would rather buy a worse phone with 850mhz and stay with telecom. Go to do some more work to fix your own network issues! Don't blame others...
In this corner wearing black tights with a ugly "T" on them and weighing in at 1000kgs we have a super heavy weight telecom !!!!!! and In this corner wearing white tights with a ugly "V" on them and weighing in at 1000kgs we have a super heavy weight Vodafone !!!!!!...........gee i feel sorry for the public/referee
It depends what your definition of "better network" is. Telecom have always had better coverage that is also more reliable than Vodafone's but when it comes to call plans and mobiles in the past they have failed big time on this.
I am excited to see what phones telecom will bring but mostly if their consumer call plans will improve.
You all say Telecom is being bullied well maybe they deserve it? Telecom was supposed to launch the XT network before the end of the year 2008, December at the latest and that obviously didnt happen and many other things like their roaming phones which arrived 6 months after the announced arrival date. They constantly promise things and never deliver them on time and frankly i got sick of it.
Vodafone are making fair allegations as far as i can see and from a business point of view i fully understand why they are doing this even if it does seem childish.
OBVIOUSLY Telecom wanted to ensure that they had covered all bases and done ample testing etc before launching, rather than rushing to launch early.. Much better move for Customers.. Doesnt take a rocket scientist to figure that out..
If they had of lauched in December and had teething problems, even small ones, you probably would have been one of those people up on your soap box complaining about the problems (whether your their customer or not).
As someone who appreciates technology being tried and tested as opposed to rush-to-market lauches, I think the fact that Telecom decided to delay the launch from Dec to May is a very smart move.
In terms of the "interference" problems, if you ask me, this is a classic example of the Big (not to mention GLOBAL) Red Wolf trying to back the Kiwi in the corner. Nothing more, nothing less. Extremely sad Vodafone.. I hope you get whats coming to you.
OBVIOUSLY launching the new network when it is ready to be launched is the right thing to do HOWEVER Telecom should not promise things they are not sure they can deliver on as they have done many times in the past. That is all im saying im not saying its a bad thing them launching the network late but the fact they promised it at a certain date and then pushed it back 6 months made a lot of people angry. I know this because i work for Telecom.
And if you say Vodafone is trying to back us in the corner - well their only intention in court was to put the network launch off untill the issues had being delt with. As it seems Telecom has agreed to delay the launch till the end of May so they can install the filters.
It appears Vodafone has settled after Telecom admitted and said they would fix the problem by installing the filters causing the interference which is why vodafone took them to court in the first place!
It was obviously an attempt to slow up the launch.
The facts are yes there is interference and Vodafone new about it.
The sensible solution is they both install and pay for their own filters.
Vodafone cannot expect to remain the only 3G network so should have had filters already, I don't see how they can justify expecting Telecom to pay for this.
Telecom also should have had filters installed without being asked too.
End of Story
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