The wireless provider is scoping out the final stages of a $100 million nationwide wireless network capable of delivering two-way digital streams into outlying areas where copper is incompetent and satellite unsatisfactory.

While it is committed to a new IP layer and wireless platform to extend the reach of its digital wireless backbone, committing to the ultimate 'last mile' portion of its network depends on proving a business case.

To achieve that BCL is currently trying to convince traditional wire-line carriers that they need its new service. BCL general manager Geoff Lawson says telecommunications companies are beginning to realize that wireless is the only way to get beyond the traditional copper based exchanges, although a business case must be proven for both parties.

BCL provides the transmission capabilities for every major radio and TV channel, except Sky TV, into New Zealand homes. It replaced its nationwide analogue wireless system with a digital microwave radio network in 2000. The $40 million investment ensured ongoing business with existing clients and opened the way for it to move into the telecommunications market.

After evaluating 70 different wireless access technologies it settled on a series of enhancements to take it the next stage with voice and data. This comprises an IP layer from Ericsson including Juniper routers and switches from Extreme Networks capable of delivering fast and secure internet traffic, voice over IP and traditional switched voice services.

BCL also chose hardware from Airspan, which provides 'carrier class' fixed wireless communications, which will allow it to deliver at least 256kbit/sec for inbound traffic and 128kbit/sec for outbound communications.

For 70 per cent nationwide coverage BCL will need to upgrade about 60 of its existing transmission sites.  To get to the other 20 per cent of the country it will need to add infill repeaters. V-sat satellites transmission will be used to get to the remaining 10 per cent of New Zealand, inaccessible through any other means.

BCL has conducted wireless trials at Tuatapere, Gisborne, West Auckland, South Taranaki and Southland. Interconnection trials are currently in progress with Telecom and discussions are ongoing with about 20 other players who might resell BCL's wireless solution.

Customers would need a terminating unit and could easily extend their coverage from a base station to a wide area network within a school, a farm, home or business.

BCL in partnership with a number of carriers has put in bids to provide high speed internet and 'no hiss' voice services to all the 14 regions under the government's Project Probe initiative.

The project designed to bring broadband to the provinces initially focuses on 2700 schools and while BCL is confident it has the technology and the expertise to meet those requirements it has its eye on the bigger picture.

It wants to provide voice and data to 200,000 customers in rural New Zealand who are presently struggling with sub-standard communications capabilities.

Communications minister Paul Swain has indicated he'd like to see government departments in small towns and rural areas pool their bandwidth requirements in order to attract the best deal for the whole community. That's where BCL believes it can make a business case for a national roll out of its new wireless access technology.

BCL says it has complete confidence in its backbone wireless network for transporting 'any kind of zeros and ones' and is looking for a good reason to extend to the last mile from the exchange to homes and business. "I'm interested in providing Telecom, TelstraClear, Vodafone and others with a wholesale price that will enable them to have a retail margin to promote the product," says Mr Lawson.

And while benchmark pricing is available with Telecom's Jetstream for example, he suggests telcos will have to be careful not to undercut profitability on their existing offerings once they get their hands on what BCL has to offer.

Meanwhile Mr Swain has welcomed the initiative of the Telecommunications Users Association of New Zealand (TUANZ) to help define applications that may make the roll out of  broadband technology more attractive.
It's National Broadband Applications Project will bring together a core group of 100 business and community leaders from 10 sectors to brainstorm the best use of broadband technology.

"It's the applications that will ultimately drive the use of broadband internet and be of benefit to communities and the economy," says Mr Swain. In addition to funding from nine commercial sponsors, the Ministry of Economic Development and Industry NZ have committed $75,000 to the project.

The two and a half day November session in Nelson will produce a book of ideas most likely to drive broadband roll out to the regions and make business sense.

Lack of applications, lack of competition and the high cost of fast internet are seen as major impediments to its uptake. The group will hopefully come up with attractive uses for broadband technology that make business sense including how it might benefit e-commerce, education, tourism, farming and horticulture, health, news, information, entertainment and central and local government.

More about mobile business and how it works.

September 2002

By Keith Newman.