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An infrastructure sharing agreement with Vodafone means 2degrees can expand its network reach by around 200 towers.

Most of the towers are in less densely populated areas. These are places where, until now, customers would need to roam on the Vodafone network.

The agreement between the two telcos echoes the network sharing work being done by the Rural Connectivity Group. Vodafone and 2degrees, along with Spark, are partners in the RCG.

Vodafone has installed Multi Operator Radio Access Network (MoRAN) hardware on the towers. They allow 2degrees to use its own spectrum.

Performance gains

2degrees says customers will notice improved download speeds, as well as better video calling and streaming.

Adding these towers means the carrier can fill in the remaining gaps in the company’s coverage which. Before the agreement the network reached about 98.5 percent of the population. Yet it covered considerably less geographic area than Vodafone or Spark.

The carrier says the move will see an end to national roaming and all customers will “receive the full 2degrees experience”.

Martin Sharrock, 2degrees’ chief technology officer, says; “Using our spectrum in these areas for the first time is like adding a new motorway for our customers to use, they move from sharing our partners’ network to a network dedicated just for 2degrees. This is possible without building new cell towers.”

2degrees smart move

It’s a smart move by both companies. Vodafone gets to earn a handy extra revenue stream without undermining its competitive position. Although carriers don’t look at the revenue generated per tower, that extra income means the 200 or so more remote sites will do a better job of earning their keep.

Meanwhile, 2degrees gets to extend its reach without the need for capital expenditure.

Capital is going to be tight. The company will need to build a 5G network. That’s expensive, but majority shareholder Trilogy International Partners is struggling.

In the past 2degrees has used vendor financing from Huawei, its network equipment partner, to expand its coverage. With Huawei locked out from building a 5G network in New Zealand that avenue is also closed.


(Bloomberg) — Fifth-generation networking hype has been in full force since Qualcomm Inc. declared “5G is here, and it’s time to celebrate” in February of last year. The reality, however, has required patience from consumers due to the time needed to roll out the new networks and the dearth of applications to put speed to compelling use.

Source: We Tested 5G Networks Across Asian Cities. The Verdict: Patchy

The message at last February’s Mobile World Congress, the phone industry’s annual gathering, was that 5G is ready.

The technology was working then. It still is. There is a lot more 5G around the world than last year. Dozens of carriers have launched networks. This includes Vodafone in New Zealand.

5G is not about consumers

Bloomberg’s report makes clear there is a gap between reality and consumer expectations.

To get acceptance of 5G, carriers need to sell the idea to consumers. They promised consumers faster speeds on mobile handsets. Up to a point they delivered, although as Bloomberg points out, delivery is patchy.

The truth is that 5G is not and never was about the consumer experience. It is all about enterprise and industrial applications. Engineers optimised 5G for communications between machines, not person-to-person calling.

A voice call on a 5G phone is no different from a voice call on a 4G network. Video streaming works fine on a 4G connection. There are no obvious mobile consumer applications that must have faster data.

The only 5G consumer user case anyone talks about is mobile games with lower latency.  Gaming is a big and important business. Yet carriers did not invest billions so commuters can shoot aliens faster while sitting on a bus.

The world wasn’t waiting for faster mobile phone data

A lack of must-have consumer apps explains why phone makers didn’t race to get 5G models to market. Yes, people will want to buy phones that can make use of the faster speeds. But they are not going to go out at midnight and queue around the block for the privilege of getting them first.

Wonderful things happen when mobile devices and sensors communicate at fibre-like speeds. No doubt 5G will transform many aspects of life. Everything imaginable will connect and either report back or act on the result of data.

Like an iceberg looming in front of a giant transatlantic steamer, the part of 5G that matters most is out of sight. It will have the biggest impact. The technology was always going to underwhelm consumers. It’s not for them. Let’s stop pretending otherwise. There is a better story to tell.

Regulating termination rates introduced ten years ago kick-started mobile market competition in New Zealand. Now it’s time to review the rules. Don’t expect to see much change.

To no-one’s surprise the Commerce Commission’s draft review of mobile termination rates recommends they stay regulated.

A termination rate is the price one phone company charges another when a call from one network is made to a customer on another network. Mobile termination rates affect calls between the Spark, Vodafone and 2degrees networks.

Until a decade ago mobile termination rates were unregulated. Carriers could charge what they liked. And they did. New Zealand termination rates were high.

This stifled competition and meant mobile calls were expensive by international standards. That in turn meant people here didn’t use their phones as much as people overseas.

Calls between networks

Before regulation Telecom NZ, now Spark, and Vodafone, would charge customers less to call others on the same network than the cost of calling another network.

In the jargon of the time they offered have different prices for on-net and off-net calls.

Mobile termination rates mean customers on the least popular network end up, over time, paying more to use their phones.

This acted to stop people choosing 2degrees, in part because potential customers feared friends might call less often.

In 2010 the government stepped in. Termination rates have been regulated since then.

The move triggered a dramatic drop in call prices to the point where New Zealand moved from being an expensive place to use a mobile phone to a relatively cheap place.

Flat playing field

Most of all, the regulation flattened the playing field. This meant the third mobile network, 2degrees, could grow beyond being a niche player.

In turn this further boosted competition and paved the way for cheaper calls more innovative price deals.

Today we have a vibrant, competitive and innovative mobile market.

Mobile termination rate regulation almost didn’t happen. Ten years ago Telecom NZ and Vodafone negotiated a voluntary agreement with government to lower charges. The Commerce Commissioned agreed.

It was all set to go. Then Vodafone began selling the most aggressive on-net plan ever seen in New Zealand. The Commerce Commission reversed its earlier decision.

The case against mobile termination rates

Fast forward to today. The Commerce Commission now says there may be a case for dropping regulation of termination rates for SMS text messages. That’s because of the popularity of alternative over the top services like WhatsApp.

This external pressure has reduced txt prices to the point where many plans offer customers unlimited texting at no extra cost. High charges are unlikely to return.

The Commerce Commission says voice call termination rates should remain regulated because there are few competitive alternatives.

That’s true on one level, but it’s not straightforward because today’s mobile battleground is all about data. With lots of data, customers can make voice calls using free or cheap over the top services.

And anyway, voice calls are not as popular as they were ten years ago.

If, in a world without regulated mobile termination rates, a carrier attempted to charge higher voice call rates, the move to data calls would accelerate. The trend away from voice calls would speed up. So, it’s possible we no longer need to regulate.

On the other hand economist Donal Curtin thinks the regulation needs another look.

The Commerce Commission now wants feedback on its MTAS draft review findings.

Apple iPhone SE 2020 with charging pad

Sometimes the stars align. Apple set out its hardware stall in early 2020 with advanced, yet lower priced, iPhones, iPads and Macs. The the pandemic hit.

Affordable models arrived as the world tightened its belt to deal with the inevitable downturn.

Take the iPhone SE. It looks like a two-year-old iPhone on the outside. Yet inside the case it has a 2020 processor. The A13 Bionic chip also powers the iPhone 11.

Lockdown ready

April’s story calls it an iPhone that’s right for lockdown times. News reports suggest the SE sell faster than Apple expected. The company struggled to meet demand. Although that could also be down to pandemic supply chain problems.

Last month’s iPhone SE review says: “This may not be the most exciting iPhone from a technology point of view. Yet it is the iPhone a lot of people have been waiting for.”

You can’t argue a NZ$800 phone is cheap. Many readers will wince if we describe it as affordable.

Yet it puts advanced technology and, arguably, the best experience in reach of more buyers.

The iPhone SE stacks up well against similar price competitors. If Android is not your thing and you prefer to avoid second hand hardware, its $800 price tag is tempting.

iPad

This year’s base iPad model costs NZ$600. You get a lot of iPad, but not enough storage. Its 32GB is not enough for most uses. Pay $780 and you’ll get a 128GB model. It represents good value for money.

Move up to the iPad Pro and prices start at NZ$1500 for an 11-inch model. That’s in line with prices two years ago but you get more iPad. The base Pro now comes with 128GB at the price of the two year old 64GB model.

Although currency movements haven’t been kind to New Zealand, prices for new MacBook Airs are still $100 or so lower than the models they replace. They come with better keyboards. Apple kept MacBook Pro prices in line with earlier models, but bumped the storage. Likewise the Mac mini.

Apple remains at the more expensive end of the market when benchmarked against similar hardware from other laptop makers. Yet the gap has narrowed. If you like the performance, the operating system and the wider Apple experience that margin is less of a barrier than it was.

Apple still has nosebleed prices if you know where to look. You could fork out NZ$10,800 for the basic Tower version of the Mac Pro. A full configured model can cost more than NZ$94,000. That includes NZ$700 to put wheels on the beast.

That’s not likely to be on your shopping list. A nice iPad keyboard might be. Apple wants NZ$549 for the iPad Pro Magic Keyboard. That’s pushing it.

Some incorrect prices were shown in an earlier version of this post. 

Gebbies Valley is the site of the Rural Connectivity Group latest mobile broadband tower.

I had to look the place up on a map before writing this story. That’s kind of the point.

The RCG’s job is to fill broadband and mobile voice coverage gaps. A government subsidy helps. The RCG is a joint venture between New Zealand’s three mobile carriers: Spark, Vodafone and 2degrees.

It runs an open access network. Some of the money funding comes from the Telecommunications Development Levy.  The Provincial Growth Fund also contributes. Spark, Vodafone and 2degrees invested $75 million in the project.

Today there are 100 working rural broadband towers.

Fixed wireless broadband

Each tower offers 4G fixed wireless broadband and 4G voice calling to the local community. To keep costs low, Spark, Vodafone and 2degrees share the antennae. The towers have fibre backhaul, which improves the performance.

Gebbies Valley has Voice-over-LTE equipment which means users can make high quality voice calls. There will also be 3G voice calling, that’s not commissioned yet. This will cover a black spot on State Highway 75.

A media statement from Communications Minister Kris Faafoi says it is a significant milestone for the second phase of the Rural Broadband Initiative. This a government funded project to deliver broadband services to the more remote parts of New Zealand.

Faafoi says the RCG towers now provide broadband access to 8,121 homes and businesses. They also mean extra mobile coverage for 343km of state highway and connect 23 tourism locations.

Eventually RBI2 will cater for 84,000 rural homes and businesses. It will improve mobile coverage on 1400km of state highways and connect 168 tourist sites.

While the project is planned to officially finish in 2023, there’s a somewhat open-ended nature to RBI2.

Early on in the programme, the government asked the RCG to build as many towers as possible with the allocated pool of money. Since then more funds have been tipped in and there’s no reason to think it will all stop at the formal end of the project.