Regional users: Don't bother with the iPhone

The new iPhone won't offer 3G speeds outside of the major cities.

Residents of regional Australia looking to buy the new iPhone for its 3G connectivity might want to reconsider, according to Ovum analyst Nathan Burley.

While metropolitan iPhone users will enjoy full 3G speeds via Optus and Vodafone's 2100 MHz 3G network, the 900 MHz band the two carriers use to connect 3G users in regional Australia is not compatible with the iPhone. The phone will instead drop back to the significantly slower 2G/GPRS speeds.

Burley said that this means the 3G iPhone, which works in 3G mode on the 2100, 1900 and 850 MHz frequencies, doesn't offer any marked advances in speeds for regional users in Australia.

James Casey, chief marketing officer for Vodafone, disagrees. He said that both Optus and Vodafone are building out their 2100 MHz networks to address the issue.

"The 900 MHz band only applies to the very fringes of our network," he said. "Both Vodafone and Optus are building out our 2100 MHz 3G networks all the way to those fringe areas. It would only be a small proportion of the population that would still be relying on [2.5G] EDGE."

Casey said Vodafone is on track to extend its 3G network to cover 95 per cent of Australia's population by the end of the year.

Burley notes that Telstra's Next G network does use the 850 MHz band supported by the iPhone.

"If Telstra offered the iPhone, it would offer 3G all over the country," he said. "In that sense, Telstra has an advantage."

Telstra has made no mention of any plan to offer the iPhone, but regional users may have the option of unlocking the 3G phone to use on Next G should such a fix be made available.

"As we saw with the first generation iPhone, people will find a way to unlock the device and use it on any network," says Burley. "I'm sure that will happen with the iPhone 3G."

Apple declined to comment.

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Talkback 7 comments

    You needed an Nathan Burley to tell you this in the report?Adam Nelson -- 12/06/08

    Geezzz you should of called me up. I'm not anaylist

    Just a geek who knows 3g sucks in Australia and especially in regional centres/areas

    Fringe areas? Like Brisbane!Dave Ingram -- 12/06/08

    Vodafone and Optus need to tell the truth about their 3G coverage. In CBD areas it is cruddy above street level and even in the inner suburbs (less than 10km from the GPO) my phones chop and change between 3G and 2G. I've used both the Optus and Vodafone 3G services and they're equally bad.

    3GAnonymous -- 12/06/08 (in reply to #320103937)

    Yeah, I used Optus and VF 3G and always found it horrible
    However I have no problems with 3 and Telstra's 2100 MHz coverage in Brisbane (expect my house only had mariginal 3G coverage, but they never claimed it should have any at all)

    Also now I'm in Perth I find 3G great, except when I get in the lift of where I work, but even 2G is marginal there.

    where do they get these so called experts ?Anonymous -- 12/06/08

    Hey Ovum guy, get a new job, because obviously you dont know about mobile networks... 850Mhz = Telstra Next G = 99% population coverage..3G is supported by 3GSM in Australia on 2100Mhz, Voda/Optus/3 and Telstra has 2100Mhz (shared with 3) and the HSDPA/UPA on the Next G 850Mhz network. the iphone will support 850Mhz and be HSDPA compliant (not HSUPA for faster speeds) which will still allow for 3.6M download and 1.8M upload (in the perfect world). havent heard whether it can be used as a tethered modem as yet.

    Hey expertAnonymous -- 12/06/08 (in reply to #320103954)

    Read it again. I think you're actually in agreement with him. Might want to apologise while you're at it.

    woopsAnonymous -- 12/06/08 (in reply to #320103963)

    you are right, Pulling boot out of my mouth right now...(but i would call the subject heading misleading)

    Even Apple can't DECEIVE THAT MUCHBullsh!t -- 13/07/08

    "Apple declined to comment. "

    ROTFLMAO!!!!! EVEN Apple doesn't have enough HYPERBOLE and BULLSH!T to try to cover up such a SWINDLE/CON fest!!

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