Will those companies that successfully bid in the upcoming 2.3GHz and 2.5 GHz spectrum auction be able to on sell their management rights? And if not, will the inability to consolidate mean that operators wanting to buy those rights in order to develop WiMax services be stymied?
These questions were at the core of an After 5s presentation by Woosh Wireless CEO Kevin Wiley yesterday in Christchurch. Wiley pointed out that under MED rules there are a total of six bands of spectrum up for grabs, but there is a maximum allowance of one band per bidder and there are strict ‘use it or lose it’ clauses.
The rules are in place to guard against anti competitive behaviour. However, according to Wiley, one band on either spectrum might be sufficient to start a nationwide WiMax network but it isn’t enough create an expansive one. In other words, the inability to purchase more spectrum could halt a full scale WiMax deployment in New Zealand. This is why Woosh wants the ability to consolidate spectrum post-auction.
Apparently the two Spectrums aren’t interchangeable from an infrastructure perspective - so if you decide to acquire a band on 2.3GHz, that’s the Spectrum you need to consolidate on.
Woosh Wireless is obviously considering its spectrum decision carefully, as Wiley pointed out in the presentation, the IP Wireless TC CDMA platform they originally picked when the company began its network build six years ago hasn’t been supported by vendors (the network in New Zealand is the second largest in the world after the Czech Republic).
He also said that although a WiMax network will enable Woosh to offer better Quality of Service (QoS) on their voice offering, it will never appeal to gamers because of latency.
Wiley’s presentation was open and thought provoking and it prompted several questions from the floor around issues such as rural connectivity and data delivery. The Woosh series of After 5s continues this evening in Wellington and tomorrow night in Auckland.