Spark promises faster wireless rural broadband soon; 2degrees says it’s priced out

Spark says it is close to launching “affordable” new fast wireless broadband services for people in rural areas.

The service will be based on 700MHz 4G technology, which Spark has been adding to cell towers built by Vodafone as part of the government’s $360 million Rural Broadband Initiative (soon to be topped up with another $150 million). 

Spark says its new service will ivolve a modem that will be free a 24-month contract or $249 off-contract. It will be a fixed wireless service; that is aimed at a particular house or business rather than something you can pick up and take with you.

Spark spent $158 million on 700MHz 4G spectrum at the government’s “digital dividend” auction last year, held after the analogue TV switch-off freed up airwaves – more than Vodafone or 2degrees. It bought the final chunk up for action for $83 million after an extended bidding war with Vodafone that drove the price well above the $22 million reserve.

700MHz spectrum is suited for rural areas because it has a longer reach (or “throw”) than the 1800MHz and 2100MHz bands typically used in urban areas.

 Spark tells NBR it has co-located its own antenna on 85 sites built by Vodafone under the RBI, with 40 more on the way.

2degrees, meanwhile, says it has only co-located on a handful of the Vodafone-constructed towers. The company says it is too expensive at $175,000 per tower, and has called for a specific change as the government prepares to dole out a further $150 million for the rural rollout.

Last week, Communications Minister Amy Adams revealed figures to NBR that showed uptake for the Crown-subsides rural broadband upgrade was even lower than the urban Ultrafast Broadband (UFB) initiative.