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Telecom launches 4G launch, Vodafone responds

Telecom held a launch event this morning ahead of its 4G network going live today after a slight delay (it was originally scheduled for October).

In most cases you'll  need a new 4G sim card to use the upgraded network, plus a compatible smartphone or data stick. Compatible devices include the iPhone 5, 5s and 5c, the latest iPads, Samsung's Galaxy Note 3 and Galaxy S4, the BlackBerry Z10, Sony's Xperia Z and Z1, and a new ZTE handset that got thrown around. Some SIM cards used with 3G devices can be used with the new 4G network, but will have to be reactivated at a Telecom store.

Anyone on any Telecom plan can access the faster 4G network once they've got one of the new 4G SIM cards, which are being sent out now. Telecom says 40,000 4G SIM cards have been sent to customers so far. Earlier October, Vodafone said 200,000 were using 4G capable devices on its network. Today it wouldn't update on that number, citing commercial sensitivity.

The company emphasises it lets pre-pay customers into the 4G tent, too - a dig at Vodafone, which has so far offered 4G for contract customers only. [UPDATE: This afternoon Vodafone said it would open 4G to prepay, with no surcharge, from December 11.]

Telecom has no surcharge for 4G (Vodafone whacked $10 onto most plans between February and last month; competition has seen it go free too).

Coverage
The initial rollout is in parts of Auckland, Wellington and Christchurch (see coverage map here) - after which there will be a "breather" (see below). That's frustrating for Telecom customers who want 4G everywere immediately, but a smart move from a commercial standpoint - and a technical one too, given the "XT" (3G) launch debacle.

Vodafone, which launched 4G in February (2degrees says it will follow in the New Year) has 4G in parts of  Auckland, Wellington, Christchurch, Queenstown, Wanaka, Lake Brunner, Taupo, New Plymouth, Palmerston North, Hamilton, Arrowtown and parts of the Coromandel (see coverage map here).

Speed
Sensibly, Telecom isn't making any official speed claims for 4G, which can hit a landline fibre-like 100Mbit/s for mobile data downloads, or up to 150Mbit/s if you've got a "Cat 4" 4G device.

The carrier is just saying it'll be much faster than its 3G network.

Vodafone's 4G network (which launched in Feburary; coverage map here) and Telecom's both offer blistering speeds, and all the bandwidth you could want whether you're on a smartphone, tablet, or have your mobile tethered to your laptop.

As ever with mobile data, real-life speeds will be variable, and depend on factors like how close you are to the nearest 4G tower, local obstacles and interference, and busy the network is.

The issue for most customers will be "mind the cap" - both Telecom and Vodafone are offering mainstream plans with 1GB and 2GB data caps - a level better suited to 3G than 4G with its landline-replacement potential. There is movement here, with 3GB, 4G, 5GB and 8GB options appearing (the latter as part of a robustly priced $219 plan) - but even at that level if you follow Vodafone's suggestion and "say hello to things like streaming HD movies" you'll use up your monthly 4G allowance inside a couple of hours.

One of the highlighted apps at this morning's launch, held at Telecom place in Auckland, was video conferencing, with a live session set up with a Telecom rep in a car in Christchurch. At both ends, a MacBook with a 4G data dongle attached was used to host a Polycom RealPresence session (any video chat software will look better with 4G rather than 3G at both ends). Telecom says at high resolution, the video conferencing uses 1GB of data every half hour - a biting chunk if you're on an average data plan. You can halve or quarter the data if you opt for lower video resolution - but then of course you loose some of the benefit of 4G (although there's more too it than just raw bandwidth/speed; 4G also has less much latency, or lag).

Telecom Retail Chris Quin says data caps are increasing. The new 8GB plan was introduced just a couple of months ago, and there are also bolt-ons. Mr Quin also notes Telecom is offering its customers up to 1GB of mobile data free over its phone box wi-fi network - although it's an alternative connection option; you can't seamlessly transition to wi-fi if you're in the middle of a video call and you're getting close to busting your 4G data cap.

Vodafone launched 4G in February (see its coverage map here); 2degrees says it will begin its upgrade next year.

Breather
Earlier Telecom chief operating officer David Havercroft tells NBR ONLINE the company will fill out its 4G network around Auckland, Wellington and Christchurch through until early 2014 using its existing 1800MHz spectrum. It will then  "take a breath break to think about how best to use 700MHz" (the band which will shortly be auction by the government). 

"I wouldn't say our world will end if we don't win 700MHz spectrum," Mr Havercroft says. However, the band, with its long throw, is the most economic for covering rural and semi-rural New Zealand, he says.

Control your kids
Huawei is Telecom's primary partner on its 4G rollout, displacing longtime incumbent Alcatel-Lucent (the company's collaborator on 3G/XT and its landline network). But Cisco has a piece of Telecom's 4G data transport action, and Ericsson has built a new Home Subscriber Service and the replacement Home Location Register - what Telecom describes as the central ‘brains’ of the network, a database that holds all customer profile information. Mr Havercoft says on a national level, this Ericsson system can be used for prioritising emergency calls. In future, there's also potential for personal data management, such as parents being given the option to curb their kids' mobile Facebook use.

Why 4G?
Why 4G? Telecom Retail Chris Quin pitches it for "Shopping online, streaming music, or making stutter-free video calls to family and friends ... It will also allow businesses to stimulate more efficient ways of working remotely with teams on the road able to make reliable video calls, download pictures and documents in seconds and use cloud services on their mobiles."

Earlier, Forsyth Barr senior equities analyst Blair Galpin told NBR Telecom's 4G delay from its October target date was no biggie - as long as the company launched its upgrade before 1) the Christmas rush and 2) Apple's local iPhone 5s and 5c launch. 

ckeall@nbr.co.nz

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Comments and questions
16

Vodafone is selling 4G Vodems and Pocket WiFis - prime example: http://www.vodafone.co.nz/shop/mobileDetails.jsp?skuId=sku30190179

Which LTE Bands will telecom be using?

Telecom is launching 4G with LTE over 1800MHz (supported by all 4G-capable smartphones).
 
It will also bid for 700MHz spectrum (along with Vodafone, 2degrees and others in the government's upcoming auction). 
 
1800MHz (and 2100MHz) are better suited to urban areas, the longer-throw 700MHz to rural areas.
 

So bands 3 and 7? (and later 28 for 700mhz)

Vodafone are building Prepay 4G capability currently, they just don't advertise it 12-18 months before it's ready.

Are you saying Telecom 4G won't work on prepay for another 12-18 months?

If Vodafone are 12 months away, and Telecom is 5 weeks away, that is a massive shift. Anyway wondering how long the Vodafone $10 add on for 4G will last. I guess it will get dropped on Nov 1 to steal a march on Telecom?

Shows how much you know when they are launching it soon, Official coms came from Vodafone today, LOL

Cool, Telecom isn't charging for 4g but these are still abysmal data caps. The vodafone plan im currently on - $42 a month for 3gbs of data, 60 mins and 2500 txts, don't Voda/Telecom understand that we just need data - and lots of it if they are giving us "lightning" fast speeds??!

Agree. Both Telecom and Vodafone are offering blistering 4G speed - certainly enough to replace landline broadband - but coupling it with 3G-level data caps.

Data caps are getting more generous, but there's plenty of scope for Telecom, Vodafone (or 2degrees, launching 4G next year) to bust out and dramatically increase their cap.

Sounds like you are still on one of the old iPhone plans which Vodafone aren't letting customers add 4G to. It is ridiculous they are not allowing customers to purchase the 4G add-on for grandfathered plans.

Yep, am still on I think the Smart 1 plan?
To get the same amount of data I would need to pay $100 more a month, as much as id like 4G, its not worth that much to me.
It seems like carriers have gone backwards, charging more for less data, Im guessing because txt and call revenue has reduced?

Hey Jared, I'm on the same plan! But no options for upgrading without losing a heap of data traffic! It's a joke what the current plans are providing in data at the moment - they need to get with the times.
Smart1 - was an awesome promo deal at the time.

Watch how quickly Vodafone drops its $10 4G tax !. Customers shouldnt have to pay extra for their network upgrade!.

Vodafone have updated the 4G coverage map some very rural locations have 4G like Warkworth , Matakana , Nelson and locations in the Coromandel like Whitianga , Hahei and Coromandel township and even Motueka I saw people tweeting the other day saying 4G in Whangarei / Kamo

Does this mean that we don't need Ufb?

Get a 4 g mobile and use it either access the mobile network or via the proliferation of wi fi networks?