Vodafone New Zealand

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Vodafone New Zealand Ltd
Type Subsidiary of Vodafone
Industry Mobile, Telecommunications, ISP
Founded 1998
Headquarters Auckland, New Zealand
Products Prepaid mobile phones
Postpaid mobile phones
GSM, UMTS (3G) and 4G LTE mobile networks
Cable Internet
Internet TV Services
Fixed Line
Retail
Services Fixed Telephony
Mobile Telephony
Internet Access
MVNO
Telecommunications
Employees >3000[1]
Parent Vodafone Group
Website www.vodafone.co.nz

Vodafone New Zealand is a telecommunications company operating in New Zealand; it is a subsidiary of the London-listed company Vodafone Plc. It is New Zealand's largest mobile phone operator, based in Auckland, and was formed in 1998, after Vodafone purchased BellSouth's New Zealand operations. The company employs over 3,000 people and has operations nationwide, with it's main offices based in Auckland, Wellington and Christchurch.

The company has invested millions of dollars in its 3G network, improving capacity in congested urban areas. It has New Zealand's first 4G LTE network and continues to maintain its 2G network. In February 2013, Vodafone New Zealand launched their LTE network which is currently available in Auckland, Christchurch, Hamilton, Taupo, Tauranga, Wellington, Queenstown, Wanaka, New Plymouth and many other towns. Vodafone 4G is in 26 centers in total.
In October 2006, Vodafone bought ihug, New Zealand's third largest Internet service provider and now provides Internet service under the Vodafone New Zealand brand name. In 2012 Vodafone New Zealand also bought TelstraClear, making it NZ's second largest ISP.

Market share

At the time of purchase in November 1998, BellSouth had 138,000 customers. The company's main rival is Telecom New Zealand, New Zealand's second largest telecommunications company behind Vodafone. Telecom had the advantage that it had a 6-year head-start on BellSouth, however this advantage slipped away in recent years.

After Vodafone took over Bellsouth, it expanded network coverage to compete more effectively with Telecom. Vodafone has constantly increased its market share and surpassed Telecom in mobile customers.

According to the Commerce Commission's 2012 Telecommunications Market Annual Report Vodafone's market share was 42%, Telecom New Zealand's 37% and Two Degrees Mobile 20%. The remainder of the market is made up of MVNO operators who have a combined customer base of 1%.

On 31 October 2012 Vodafone acquired 100% of TelstraClear from Telstra.

Vodafone now has over 2.3 million customers nationwide

Mobile virtual network service

Vodafone NZ also provides services for mobile virtual network operators. This means other companies can resell Vodafone's network services (data, telephone and SMS) under their own brand name. Their customers connect to Vodafone's network as any other Vodafone customer would, but instead of seeing "Vodafone NZ" as the network operator, they will see the name of the company they pay for these services. This is different from 2degrees, who offloads customers onto the Vodafone network when they are not in a 2degrees mobile coverage zone. 2degrees has a roaming agreement with Vodafone NZ, and as such, their customers roam only on the network when they have no coverage, otherwise they connect to 2degrees' own equipment. MVNO networks do not have their own cellular equipment, so customers connect to Vodafone's network constantly, instead of jumping between networks. Current MVNOs running on Vodafone's network include: TelstraClear, Black + White Mobile, Orcon Internet Limited, and Compass Communications.

Coverage

Vodafone operates a GSM (2G) mobile phone network at 900 MHz, an 1800 MHz and a UMTS (3G) network at 900 MHz and 2100 MHz.
They also operate a 4G LTE network at 1800 MHz Auckland and Christchurch, with plans to expand during 2013. It states that the network provides service in "around 97% of where New Zealanders live, work and play"..

GSM Coverage

Vodafone operates a nationwide GSM service in the 900 MHz band. In areas with high demand there are additional GSM services operating in the 1800 MHz band, usually from existing 900 MHz cell sites, to provide more capacity. Areas with both 900 MHz and 1800 MHz service cover most major business districts and large shopping malls. In recent years Vodafone has also established some cell sites that only provide 1800 MHz service where it is difficult to release spectrum for more 900 MHz cell sites. Most phones sold since the mid-1990s support both bands.

2degrees, a rival operator, provides its own GSM service in both the 900 MHz and 1800 MHz bands. 2degrees has a roaming agreement with Vodafone allowing 2degrees customers to access Vodafone's GSM and UMTS network in areas where 2degrees does not have its own mobile coverage.

UMTS Coverage

In the main centres, Vodafone operates UMTS (3G) service using the 2100 MHz band. UMTS service is often provided from the same cell site as 900 MHz and/or 1800 MHz GSM services. Most of the existing 900 MHz sites were built in the 1990s when it was not expected that a 2100 MHz network would be built, hence the existing 900 MHz network was not at all optimised for 2100 MHz service. Due to the fact that 900 MHz and 1800 MHz signals propagate further than 2100 MHz signals, there were many areas beyond 2100 MHz coverage where UMTS phones would have to hand down to 900 MHz or 1800 MHz GSM service. In recent years Vodafone has established many individual 2100 MHz UMTS sites to enhance 3G coverage.

In rural areas, Vodafone has installed 900 MHz UMTS (3G) service alongside their existing 900 MHz GSM (2G) service. The 900 MHz UMTS service has roughly the same coverage area as 900 MHz GSM service, so instances of UMTS service being handed down to GSM should occur far less often in rural areas than in areas covered by the 2100 MHz network. However many older UMTS phones only support 2100 MHz service so these phones will hand down to 900 MHz GSM even though there is UMTS service available at 900 MHz.

4G LTE Coverage

Vodafone offers 4G LTE coverage in Auckland, Arrowtown, Christchurch, Gisborne, Hamilton, New Plymouth, Palmerston North, Queenstown, Taupo, Tauranga, Wanaka and Wellington on the 1800 MHz frequency, to compatible devices with any post-paid plan. Prepay plans with 4G became available on Vodafone in December 2013. 4G was originally considered an "add-on" and was included in three higher level plans and the Vodafone Red plans.

Phone numbers

In New Zealand all mobile phone numbers start with 02. Vodafone is allocated the 021 prefix with other networks being allocated other prefixes — such as 022 to 2degrees, and 027 to Telecom. However Number portability was introduced to the New Zealand market on 2 April 2007 which means that customers can bring, for example, their 021 prefixed number to Telecom. Within New Zealand, the network is sometimes referred to in speech by its prefix—i.e. 'Are you 021?' instead of 'Are you with Vodafone?'.

029 Prefix

Vodafone used to operate the 029 prefix on behalf of TelstraClear, in addition to its own 021 prefix. TelstraClear customers, mostly corporates, used to be able to get mobile numbers under this prefix; these customers were billed by TelstraClear instead of being billed directly by Vodafone. In 2007 this agreement lapsed, and in 2008 some of these customers were transitioned to Telecom New Zealand who serviced them initially with CDMA2000 technology. Those TelstraClear 029 customers not transitioned to Telecom New Zealand remained with Vodafone. Subsequently TelstraClear joined Telecom as a MVNO operator, but that relationship soured and TelstraClear re-signed with Vodafone in 2009 and remains on the Vodafone network.

Comparison with 027 Prefix

Telecom New Zealand, Vodafone's rival, has fixed 10-digit numbers under its 0272-0278 prefix, which allows approximately 7 million possible numbers. Telecom originally had mixed 9-digits and 10-digits number using the older 025 prefix. The 027 prefix with only 10-digit numbers simplified its numbering system at the time of launching its CDMA network. The older 025 prefix was phased out with its now redundant AMPS and TDMA networks.

3G services

On Wednesday 10 August 2005 Vodafone introduced a new 3G network employing the UMTS technology widely used in Europe and elsewhere. Using this standard, Vodafone now offers Video Calling, music downloads, SKY mobile TV and other services from its Vodafone live! portal.

Vodafone began rolling out HSPA+ data services on its UMTS network in 2011; at the time of writing (May 2012), Auckland, Wellington and Christchurch have coverage. HSPA+ is capable of a theoretical maximum 168 Mbit/s download speed and 22 Mbit/s upload speed, although higher speeds are only supported in areas with an excellent radio signal.

Vodafone launched HD Voice[2] on 7 November 2013 - a high definition voice call technology. This technology works over 3G with HD Voice compatible phones on Vodafone to Vodafone voice calls.

Internet

Fixed Line Technologies

ADSL [3] Vodafone also owns two other ISPs, Paradise.net and Clearnet.

VDSL2 Only available to Business customers in the 'on-net' areas, this technology is used to deliver the product BizBroadband and BizNet, as well as the IP Voice products (IP FeatureLine, IP Connect, IP Gateway, IP Clarity).

DOCSIS (cable) Vodafone also offers DOCSIS cable modem internet access within TelstraClear's own (built) network.[4] Currently offering standard speeds of up to 15 Mbit/s, And Vodafone have also released 100 Mbit/s plans with 10Mbit/s upload.

iPhone

The very first iPhone 3G released on 11 July 2008 was sold in Auckland, New Zealand to 22-year old student Jonny Gladwell at 12:01 am NZST.[5]
The iPhone 3G was only available to customers on the Vodafone network.[6] 3G coverage for iPhone 3G was limited to major urban centres, as the phone operated on 850, 1900 and 2100 MHz bands; Vodafone's 3G network uses 900 and 2100 MHz. (The 850 MHz 3G band is used by rival Telecom NZ). 900 MHz capability was added from the iPhone 3GS and subsequent models of iPhone.

Subsequent launches of iPhone models in New Zealand have typically been a few weeks after the worldwide release. 4G LTE capable models (iPhone 5, iPhone 5s and iPhone 5c) are CAT3 devices and can be used on Vodafone's 4G LTE network.[7] Vodafone's 4G LTE coverage is present in Auckland, Arrowtown, Christchurch, Coromandel, Gisborne, Hamilton, Nelson, New Plymouth, Palmerston North, Taupo, Tauranga, Wellington, Wanaka and Queenstown using the 1800 MHz frequency. No current iPhone model (nor any other phone currently available in New Zealand) is capable of operating on the proposed 700 MHz LTE network for rural areas, meaning coverage on current phones will be limited to urban areas. The 700 MHz frequency is likely to be deployed in late 2014.

Television

Vodafone operates a Hybrid Broadband pay television network formerly owned by TelstraClear under the brand "Vodafone TV". It is delivered over both UFB cable and UFB fibre, available in Auckland, Wellington and Christchurch, Whangarei, Palmerston North and Dunedin.

Customers receive Freeview HD channels via a Digital TV recorder and can subscribe to SKY TV channels. No content is sourced by Vodafone itself except 36 Vodafone Pay-Per-View channels. Selected content is available in High Definition.

As of June 2011 TelstraClear ceased all Analogue transmission on its cable network. In September 2010 TelstraClear released their own PVR called the T-BOX. The launch followed the release by parent company Telstra (AU) of a similar product.

Coverage

Vodafone's cable network is available in the following areas:

Interactive Services

  • Electronic Programme Guide (EPG) - Television listing information.
  • Pay Per View (PPV) Guide - Vodafone Movies listing information.

Defunct Channels

  • TechTV was available up until May 2004, when current owner Comcast halted international broadcasts. (Source: Vodafone website)
  • Chilli (an adult channel) was also available until 2006 when CEO Alan Freeth discontinued the product on moral grounds.

(Source TelstraClear staff memo)

  • Wild TV
  • Visitor TV This has been closed down after the February 22nd Earthquake
  • TBN has also ceased due to their financial limitations

Criticism and complaints

Between 2006 and 2009 Vodafone ran a series of advertisements and promotions which were found to be misleading and led to complaints - and eventually a series of large fines in 2011 and 2012[8][9] after action was taken by the Commerce Commission under the Fair Trading Act. Vodafone NZ issued an apology for this incident[10]

TelstraClear purchase

TelstraClear logo

TelstraClear had its beginnings in New Zealand with Kiwi Cable in the Kapiti Coast district, Clear Communications in 1990, and Telstra New Zealand in 1996.

Telstra NZ slowly expanded its operations in the business market bundling Telecom New Zealand services distributed as a reseller with its own network services. It installed switches in Auckland and Wellington to manage incoming and outgoing international traffic and maintained an interconnect agreement with Telecom New Zealand and is likely to have had others with companies such as Clear Communications.

In 1999 Saturn Communications was sold by its parent company, Austar United Communications to a new joint venture with Telstra that became known as TelstraSaturn.

TelstraClear was then created by the merger of Telstra's TelstraSaturn and Clear Communications in December 2001. Austar United Communications held an initial investment of 42% in TelstraClear before selling it back to Telstra.

In 2004 TelstraClear made its first acquisition in the IT market with the purchase of Sytec[11] mainly for its IP telephony and security skills, in particular the specialist managed security subsidiary DMZGlobal. In 2007 Sytec was formally introduced into the TelstraClear's Enterprise and government division and the brand retired, but the DMZGlobal brand has been retained and invested in.

In July 2012 Vodafone NZ approached Telstra to purchase TelstraClear for a payment of $840 million and $450 million that TelstraClear has in its accounts. On 30 October the Commerce Commission approved the takeover bid, and on 31 October the sale was completed. The 31 March 2013 is the final trading day of TelstraClear.[12]

See also

References

  1. ↑ . Vodafone New Zealand http://www.vodafone.co.nz/our-company/in-new-zealand/. Retrieved 19 January 2014.  Missing or empty |title= (help)
  2. ↑ "Vodafone launches HD Voice". 
  3. ↑ Vodafone broadband and internet
  4. ↑ TelstraClear to deploy DOCSIS 3.0. Telegeography.com (3 August 2009). Retrieved on 23 July 2012.
  5. ↑ "Auckland man snaps up first new generation iPhone". TVNZ. 2008-07-11. 
  6. ↑ Vodafone NZ first to sell iPhone 3G
  7. ↑ iPhone 5s and LTE
  8. ↑ "Vodafone fined $960,000 for misleading advertising", Jamie Grey, 10 Sept 2012, NZ Herald
  9. ↑ "Vodafone admits misleading advertising", Tom Pullar-Strecker, stuff.co.nz
  10. ↑ "Vodafone dodges damage with sorry", NZ Herald
  11. ↑ "TelstraClear acquires Sytec". Telecomworldwire. 2004. 
  12. ↑ TelstraClear acquired, 2012 

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