Telecom New Zealand and rival Vodafone have swiftly resolved a dispute that threatened the launch of Telecom’s new WCDMA/HSPA network. In a joint statement, both parties noted that “Telecom has agreed to extend its network filter installation programme, in order to help resolve the interference issues identified as impacting Vodafone mobile customers.” In return, “Vodafone has agreed to discontinue the injunction proceedings.” However, the launch date of Telecom’s new network – initially scheduled for 13 May – appears to have been delayed slightly, as the statement says that the network “will go live for New Zealanders by the end of May 2009.”

Telecom’s acceptance to extend its network filter installation programme marks an about-turn on previous strategy. Last week it dismissed Vodafone’s claims that launch of its 3G network in the 850MHz band is interfering with Vodafone’s 900MHz network, stating at the time that the move “is a piece of aggressive behaviour that betrays Vodafone’s insecurities about competition from Telecom’s new mobile network.” Once live, Telecom’s 3G network will ramp up competition in New Zealand’s mobile broadband market. The operator has invested over NZD574 million (US$325 million) in the network and sees deployment of the new technology as key to grabbing market share from dominant player Vodafone (52 percent market share).