Telstra dismisses 3G interest as premature

Telstra's chief executive officer (CEO), Ziggy Switkowski, has dismissed the immediate business prospects for 3G, claiming it would not arrive as an important technology until later this decade.

Switkowski told an Australia-Israel Chamber of Commerce luncheon today in Sydney that while Telstra saw 3G as playing a key role in the wireless technology space in Australia, it would not happen for a few years. He cited video telephony as a technology with the potential to be a killer application.

Switkowski isn't the only high profile industry pundit throwing cold water on the 3G bandwagon. Earlier this month a survey from management consultancy A.T. Kearney revealed that, despite 55 percent of mobile users being aware of 3G's service capabilities, only a quarter of them were interested in using the technology.

Earlier this year Hutchison Telecommunications CEO Kevin Russell also questioned Australia's drive to deploy 3G services in a speech he gave to a telecommunications congress in Sydney.

At the time Russell argued that, rather than being driven by a killer app, 3G's success would be dependent on a "cocktail" of services.

Switkowski also cited 3G technology as an example of the different judgements applied by telecommunications companies when considering levels of investment in high-risk, high-reward technologies.

He talked up the potential of wireless devices and progressive interoperability between the different platforms.

Telstra envisaged a domestic environment based on wireless connectivity throughout the home by the end of the decade, he said. "People looking far enough out can see demand for wireless appliances," Switkowski said.

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Talkback 2 comments

    Telstra is showing a great lac ...MrDamage -- 13/09/02

    Telstra is showing a great lack of initiative here.

    Video/telephony and video conferancing has been around for a while, with very few people picking it up. Besides, with broadband internet, webcams, and progs like powwow etc, who needs video phones, especially at the rate that telstra would charge.

    Besides, i like being able to wander around the house in my jocks talking on the phone. I dont want to have to put on a pair of pants just to answer the damn phone.

    MrDamage, Well if you want to ...MrAntiTelstra -- 23/09/02

    MrDamage,

    Well if you want to walk around naked on the phone, good on you, 3G technology would benifit millions.... But because of braodband limits and high prices, and now even higher prices soon, it would be a waste of time, thats why telstra is against it, bcause all it would do is JAM up their SLOW, old out of date, falling apart network. Thus, forcing them to increase price 100% to 200% to cover the cost of repairing and replacing this OLD out dated equipment, which should be done now without consumer COSTS.

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