Telecom New Zealand is to spend NZ$574 million (US$358 million) in the next two years on nationwide deployment of a WCDMA/HSPA network in the 850MHz band. The move marks the end of the operator’s internal review of its future mobile technology deployment. In August, CEO Paul Reynolds said the company was evaluating “the further potential of WCDMA at 850MHz” following earlier WCDMA/HSPA deployments that saw the technology only being used by 22,733 of its 2.2 million customer base (according to Wireless Intelligence.) In contrast, the operator currently has 750,000 customers using 3G services based on CDMA2000 1xEV-DO technology.

“The W850 technology is the smartest choice for New Zealand’s unique geography and conditions,” said Dr Reynolds in a statement today, adding that the operator is committed to deploying HSPA+ technology in the future. Initial WCDMA services will be launched next month, with full launch (reaching 97 percent of the country’s population) targeted by June 2009. The operator claims this timeframe will be a year in advance of its competitors. In July, Telecom rival Vodafone New Zealand said total spending on its own national 3G network will have reached NZ$500 million (US$312 million) by 2010, when it aims to cover around 97 percent of the country’s population. Despite Telecom New Zealand’s bullish claims, Wireless Intelligence notes that although Vodafone only has approximately 200,000 more total subscribers than Telecom, it already has nearly 1 million WCDMA/HSPA connections. Today’s announcement from Telecom New Zealand also coincided with its second profits warning in just over two months, revealing that current year earnings will be as much as 8 percent lower than previously estimated. Telecom New Zealand’s technology decision sees it follow other CDMA operators such as Bell, Telus and Verizon in making the move to GSM-based technologies for future network evolution. A third mobile network operator in the country – NZ Communications – is scheduled to launch next year but has been plagued by delays.