There could not be more contrast between Spark and Vodafone’s 5G launches. The two launch events tell a tale about the effect of the Covid-19 pandemic on carriers.
Last December Vodafone launched its 5G network. On day one it had 100 5G towers in Auckland, Wellington, Christchurch and Queenstown.
This week Spark’s 5G network opened for business. In Palmerston North.
That’s right. Spark chose New Zealand’s eight largest city to showcase the latest mobile generation.
The company says it is working with Toyota to uncap the value of 5G in Palmerston North.
You might think this would involve something exciting like driverless cars. After all, Spark tested New Zealand’s first autonomous vehicles last year.
Instead, the partnership delivered a dreary virtual test drive app. It’s the kind of video streaming application that 4G mobile handles with aplomb.
Vodafone’s launch had holograms, long-distance veterinary surgeons, remote cranes and 5G controlled factories.
There could not be more contrast between the two 5G launches. Vodafone had exciting technology and glitz. Spark has Palmerston North and 4G apps.
Vodafone went hard and early. Spark’s launch is timid. The company says it will offer 5G in four more locations before the end of the year. By then it will be a full 12 months behind Vodafone.
To be fair, Spark had to wait for the government to deliver 5G spectrum before it could move. Vodafone had suitable spectrum in its pocket.
While we are being fair, the world has changed a lot since Vodafone’s launch. Spark’s cautious arrival on the 5G scene could be the right strategy for pandemic times.
Like New Zealand’s other telcos, Spark may yet have a wall of bad debt to deal with. Not splashing money on a big 5G roll out and a fancy launch looks prudent today. It’s possible Vodafone’s investors wouldn’t have funded a 5G launch if they knew what was coming.
It is not as if rivers of gold will flow into the coffers after a 5G launch. As Telcowatch shows, Vodafone’s market share didn’t move after it launched its 5G network.
Vodafone may look confident. Yet that confidence doesn’t extend to charging customers more to use its 5G network. Likewise, Spark isn’t going to ask the people of Palmerston North to pay a 5G premium.
Even the boring Toyota demonstration app seems sensible and wise. It’s not as if there are any practical applications for everyday users that depend on 5G to work. Why pretend otherwise? Vodafone’s examples looked exciting, but it will be ages before they are everyday reality here.
And that’s the key. While the above story may read like a criticism of Spark, it is not. Spark has cut its coat according to its Covid-19 era cloth. We need to adjust our expectations for less techno-dazzle and more back to basics.