New Zealand Operator Signs Huawei Contract

The New Zealand arm of Econet Wireless, recently renamed as NZ Communications says that it has signed a contract with Huawei to build a nationwide cellular network. The company, which was granted a license over six years ago says that it will now take about 18 months to build its infrastructure. Huawei had signed a contract back in 2005 to build a core radio network in Auckland, although it is not known if any work was carried out.

The contract was held up until capital investment was secured from international private equity funds Hong Kong based GEMS (General Enterprise Management) and UK based CVP (Communication Venture Partners). The investment has also altered the shareholdings within the company, although it has declined to specify exactly who owns what now. The Maori Hautaki Trust which is a co-shareholder is known to have reduced its existing 30% holding.

New Zealand's Commerce Commission is currently investigating as to whether the incumbent operators, Vodafone and Telecom New Zealand should be forced to allow national roaming on their networks for any new entrant who has less than 10 percent population coverage. If this is mandated, then NZ Communications may be able to launch its service much sooner than the current 18 month timeline, although as the company is understood to be following the GSM path - any roaming could only be secured with Vodafone."

Posted to the site on 29th March 2007