Ann: Network Announcement - 3G Network Share in 2, page-3

re: Ann: Network Announcement - 3G Network Sh... i just read the australian newspaper article.this answers my question............................................VODAFONE Hutchison Australia has announced a major construction program to amalgamate its network assets and challenge Telstra's Next G service.
The carrier said it would consolidate its mobile network assets into a single network and undertake a massive expansion program to add 1400 new sites and establish a new 850MHz network.

The new sites would boost 3G capacity on its 900MHz/2100MHz network in metro and outer metro areas with each segment to receive 900 and 500 new sites respectively.

VHA confirmed that most of the 900 new metro sites would come from a pool of around 1350 sites it expected to retrieve from the gradual termination of its 2004 joint-venture with Telstra which was also announced yesterday.

The new 850MHz network would span 1500 base station sites it currently operates but VHA chief Nigel Dews said that it would eventually span its entire base station footprint.

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"Every site in our network will have a 2G layer, a 3G layer at 850MHz and a 3G layer at 2100MHz," Mr Dews said.

He declined to reveal how many sites were in scope altogether.

"There'll be more. Given the shifting nature of the telecommunications infrastructure I'm really confident we're going to be able to build more and more so I can't give you a final number. There just isn't one for this network," Mr Dews said.

VHA said that since merging Hutchison 3 and Vodafone to form the new company in 2009, it had spent $550 million on the consolidation program.

The new 850MHz network appears to be a direct challenge to Telstra's Next G network which has around 7000 base station sites covering an estimated 99 per cent of the population.

Ovum telecommunications analyst Nicole McCormick said that Telstra "would maintain its 3G geographical coverage lead over its rivals for the foreseeable future."

The move came as no surprise to industry experts. Yesterday Telstra announced that by 2012 it would end the six-year-old network joint-venture agreement VHA inherited by absorbing Hutchison.

In 2004 Telstra paid Hutchison $450m and a $115m in maintenance charges for rights to jointly-own and operate 3's 3GIS network -- then the only 3G network in the country.

The two have agreed to split assets in 2700-site network over the next two years.

Telstra marketing chief Kate McKenzie said that Next G's coverage and speed meant it no longer made sense to invest in the network.

The split came as no surprise to industry experts yesterday. Ovum telecommunications analyst Nicole McCormick said: "The wind up of 3GIS didn't come as a surprise, given that Telstra's main mobile play is Next G which operates at 850MHz and not 2100MHz."

"VHA has also unveiled its single network strategy. However, Telstra will maintain its 3G geographical coverage lead over its rivals for the foreseeable future."

VHA also inherited a 3G networking roaming agreement Hutchison struck with Telstra. The former Vodafone Australia also had a network operation agreement with Optus but its fate was less clear.

"We certainly won't need our existing roaming agreements but let's see where we are as we get towards 2012. We'll have strengthened site coverage and I expect that once we're able to connect base stations to the NBN backbone we'll be able to build more coverage in regional areas cost-effectively," he said.

The company currently needs both agreements to keep its footprint at 96 per cent of the population.

Mr Dews said he believed that the roaming agreement with Telstra would become redundant as the company moved closer to 2012.

The fate of the network joint-venture with Optus was less clear.

"We'll continue to talk with Optus about that but we're both very happy with the operation of that network and there may be potential to expand it, there may not," Mr Dews said.

"Let's just see how that goes -- one thing at a time. This is as far as we've got today."