VODAFONE Australia has at last pencilled in a completion date for the $500 million upgrade of its 3G network after technical issues and legal wrangling plagued the project with delays.
Come August 31, Vodafone's 3G network coverage will have extended to more than 94 per cent of the population.The upgrade, however, has not been without drama. When the project was first announced in late 2007, Vodafone set a self-imposed deadline of Christmas 2008 to extend its 3G network footprint to 95 per cent of the country, up from 58 per cent. Vodafone's network currently covers 63 per cent of the population.
At the time, Vodafone chief executive Russell Hewitt said the project was its "number one priority for 2008".
But last October, Vodafone delayed its 3G network after its equipment supplier, Ericsson, struggled to integrate the new network on to the carrier's existing live network.
Sources close to the deal revealed to The Australian that Ericsson was made to pay a $30 million penalty for failing to honour its original contract and complete the network upgrade by the end of last year.
Vodafone and Ericsson both declined to comment on the financial penalty that is believed to have been paid.
"As a turnkey vendor, Ericsson has sole responsibility for this project. Notwithstanding that, collaboration is the key to the successful completion of this project and both Vodafone and Ericsson remain committed to getting the job done," a Vodafone spokesperson said.
Last year's delay is not the only one to affect the 3G rollout. In January, Vodafone said it would reveal a revised schedule for completion of the work by mid-February, but the deadline passed with no update.
Vodafone cited the ironing out of legal technicalities between itself and Ericsson as the reason behind the new timetable delay.
"It's always a race against time to bring major upgrades to market as soon as possible, but it's even more important to get it right first time and minimise disruptions to normal services," Vodafone chief technology officer Andy Reeves said.
"We've managed the project in a pragmatic way to ensure quality and continuity of coverage for our customers throughout the upgrade project."
Vodafone now says it will complete the upgrade of its 3G footprint in two stages. The first, to be completed by the start of May, will expand 3G services to cover 80 per cent of the population in areas including Albury-Wodonga, Ballarat, Byron Bay, Cairns, Darwin, Hobart, Newcastle and Townsville.
The second stage, to be completed by the end of August, will extend 3G coverage to more than 94 per cent of the population.
Vodafone said the imminent merger between Vodafone and Hutchison's 3 would have no immediate impact on the network upgrade.
Source: AustralianIT.news.com.au
Mitchell Bingemann | March 25, 2009
