Telstra silent after 'losing iPhone deal'

By Marcus Browne, ZDNet.com.au

16 June 2008 04:47 PM

Tags: whereis, telstra, sensis, mobile, iphone, google, deal, content

As Telstra's rivals prepare for their 11 July 3G iPhone launches, the national carrier remains silent over speculation that it derailed a deal with Apple to resell the device.

Telstra had arranged a substantial 3G iPhone order with Apple before negotiations broke down between the two parties due to disagreements on whether a Telstra iPhone would come preloaded with Sensis content, an anonymous source told The Australian Financial Review.

A spokesperson for the telco today refused to comment on the report, saying that Telstra had "nothing more to add" on the iPhone at this stage.

Guy Cranswick, media platform and channels analyst for research group IBRS, believes that any possible dispute between Apple and Telstra could be classed as a "classic cyber-territory issue".

"The negotiation over the content issue would come down to whether or not Apple thought it possible to achieve all of its marketing and sales objectives without Telstra," he said.

"Given its position in the market, Telstra would be an important partner for Apple to have on-board, but Apple has always been very intent on keeping total brand integrity as well," added Cranswick.

Apple did not respond to requests for comment.

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AAARGH!! Anonymous -- 16/06/08

Come on Telstra swallow your pride and offer the 3G iPhone!

Telstra misses the Cluetrain Anonymous -- 16/06/08

Steve Jobs doesn't want iPhones preloaded with second-rate services? Who would have thunk it!

Telstra really are shooting themselves in the foot with this one. They need to catch up to the Cluetrain.

TELSTRA AND IPHON MARK HAVELBERG -- 16/06/08

JUST GIVE THE CUSTOMER WHAT THEY WONT FOR A CHANGE AND YOU WILL REAP THE BENIFITS AND INCREASE YOUR PROFITS TO YOUR SHARE HOLDERS GO FOR IT! TELSTRA CUSTOMER FOR 25 YEARS.

Not the way telstra works Anonymous -- 17/06/08 (in reply to #320104237)

Telstra will probably just sue Apple, the ACCC, the Commonwealth, et al :-)

greedy B%&%@#s Anonymous -- 16/06/08

Telstra doesn't deserve the iPhone. I want to cancel my contract anyway because their data plan sucks.

"crybaby" Anonymous -- 17/06/08 (in reply to #320104246)

having a tantie are we?? Going to take your bat & ball and go to "whingepool" with all the other whingers heh??

What? Anonymous -- 18/06/08 (in reply to #320104329)

No, cancel my contract because the data plan sucks.
Are you implying that if I don't like the service I should just shut up and keeping being ripped off? Why would any sane person do that? What has whirlpool got to do with anything?

Shooting itself in the foot Anonymous -- 16/06/08

When the first iPhone came out, a very high up Telstra exec said that Apple should have stuck to making computers and leave the phone business to the experts! These execs don't ever learn that it is impossible to predict the way technology turns. Years ago an IBM exec thought that there would place for may be a dozen PCs in the world!

Telstra iPhone dataplans too expensive Anonymous -- 17/06/08

Perhaps Telstra realise that their overpriced data plans would be too obvious if users have iPhones.
They will just stick with Blackberries where it is harder to consume data.

Stop making up stories Anonymous -- 17/06/08

Please stop making up stories. Sensis don't have a product capable to run on the iPhone at the moment... other than their very basic mobile web apps. This sound to me like a fabricated story...

It's not made up! Anonymous -- 17/06/08 (in reply to #320104310)

months ago (maybe 6-8) Telstra were advertising for people to develop Sensis apps specifically for the iPhone.

it was widely reported at the time.

there might just be some truth in this story!

Sensis - capable? 2 words in a sentence that don't mix Anonymous -- 17/06/08 (in reply to #320104310)

Sensis couldn't find it's own way out of an elevator with neon signs and a map!
Apple's iPhone developer program probably knocked back their application because it sucks!

Sensis crap Brian Campbell -- 17/06/08

I have had a number of phones from Telstra with no significant problems.

The one thing that has annoyed me, however, is all the pre-programmed Sensis and BigPond 'bloatware'. Thankfully, I was able to reconfigure my new N95 to get rid of it. If it wasn't there on the iPhone in the first place, I would have considered this as a selling point.

Rick Anonymous -- 17/06/08

Telstra - clueless on customer needs/wants.

Telstra being greedy? Anonymous -- 17/06/08

Too bad, I'm with Vodafone and they kick arse!

Telstra lost our services ages ago cause they could never do anything right. And once again they prove themselves incapable of supplying Australia its most long awaited high demand phone. Way to go Telstra.

Maybe next time just nod and smile and take the deal and then compromise for the next iphone.... or maybe MAKE A APPLICATION specially for the sensis content. Gee is very possible.

Sounds likely Anonymous -- 17/06/08

This sounds just like Telstra - they would not undermine their Sensis brand with Google Maps etc - despite the fact that after nearly 10 years you still can't find a local plumber with Yellow Pages online - even if you know the name of the street they are located on.

The only think I'll miss is the possibility of using their 850Mhz 3G Network - its' still the biggest game in town.

Sucked in Trujillo! Rex Alfie Lee -- 17/06/08

He's proven himself again. He's a dweeb in the Telecommunications world. Nobody likes him, nobody wants him, he should go home. So, go away creep & let Telstra stuff-up their own mess with Australian hands. Better them than you!

I'm truly glad that Apple have shutdown talks with Telstra. It shows what a bunch of capitalist A-holes the Telstra board truly are. Greedy monopolisers no different to Microsoft.

Just remember guys, the wires that you call yours are not & never were. They're ours & just because the ignoramus, Li'l honest Johnnie K-K-K-Howard sold all of it back to the public, the public who already owned them, doesn't mean we forget.

Telstra used to be a company I was proud of. I worked for them once. What happened & don't blame business or Optus? It's the scum clinging to the ring at the bottom.

HATE DESTROYS. Sydney Lawrence -- 18/06/08 (in reply to #320104397)

Goodness gracious me Rex Alfie Lee for heavens sake take a cold shower and have a good lie down.

Your ravings verge on lunacy and are certainly not the feelings of most Australians. O.K. you had a bum deal years ago when you worked for Telstra or the PMG but get over it.

If you persist with your present thoughts you will end up a bitter and twisted person and spend the rest of your life in a wasted pathetic dream. Most people I know love and adore Telstra, that is why they are Number ONE with Australians.

Happiness for all. Sydney Lawrence -- 18/06/08 (in reply to #320104434)

My apologies Marcus for straying from topic in the above Post but we really must assist fellow human beings when in need.

Marcus, we are certainly at an interesting point in the iPhone story but I am sure, and certain, that Telstra will deliver to the multitudes in the near future. Every best wish.

Most people Simon -- 18/06/08 (in reply to #320104434)

All the people I know do not like Telstra although about half have no choice but to use them. The individuals, SMEs, Corporates that I deal with dislike Telstra intensly for their lack of service, pricing, consistency and billing failures.

So how do you figure the majority of people love and adore Telstra? Thats the funniest thing Ive heard in some time.

Telstra Number Two's with Australians Anonymous -- 18/06/08 (in reply to #320104434)

Sydney Lawrence, you're wrong about Telstra being number ONE with Australians. Telstra is most definitely number TWO's with everybody I know. As a company - they stink!

right on about Mr Wrong Truilljo Anonymous -- 03/12/08 (in reply to #320104434)

obviously you need the cold shower the original message you replied to was completely ON ON ON
OI OI OI

Telstra is a new market name for a national KKK style bozoness

Losers Anonymous -- 18/06/08

This makes me laugh so much. What a bunch of total idiots. When is Telstra going to realise that it can throw its weight around in the Australian market but on the global stage it means nothing. Good on Apple for sticking to its guns and not be pushed around by the classroom bully that is Telstra. I hope the iPhone is never offered by Telstra.

Biggest Loser Anonymous -- 21/06/08 (in reply to #320104439)

You young guys must be wet behing theears if you dont think Steve Jobes aint gunna want to extract as much money for the new apple toy from the Apple "must have the latest" TRAgics.

And ya think Telstra is bad LOL

Who cars about Telstra Anonymous -- 18/06/08

I don't care if Telstra have the iPhone or not, i am currently with Telstra on a corporate plane (a few of us in a business) and we pay them over $1000 per month, on July 11th i am out. Not quite sure who will be the best provider but thinking Vodafone at the moment.

It would have been far easier for me to stay with Telstra but they have taken that option away

Grass always looks greener pal. Sydney Lawrence -- 18/06/08 (in reply to #320104445)

See you back at Telstra in 12 months Anon.

Pay up or shut up. Sydney Lawrence -- 18/06/08 (in reply to #320104453)

On second thoughts Anon, and I hope it's not true in your case, sometimes that happens when you don't pay the Telstra bill?

Grass in much greener Simon -- 18/06/08 (in reply to #320104453)

I switched from Telstra four years ago and have not only saved thousands of dollars, I've had better service and a positive experience.

At work I still deal with Telstra on some niche services and they still continue to get it wrong month in, month out. So much for the great Telstra transformation!

Telstra Numer 1 ??? Anonymous -- 18/06/08

Yes. At ripping off the public.
Why? Because they had a monopoly and the pollies protected them for too long.
WE PAY.
Good to see them fail with Apple.
I thought that there was a history, and maybe its Apple's payback time.

The NATIONAL Carrier??? Keith Styles -- 18/06/08

Marcus, why do you insist on calling TEL$TRA the National carrier?

It stopped being the national carrier when Little Johnny (dickhead) Howard sold it off to a bunch of yanks to run.

It's just another rapacious business which overcharges & rips people off at every opportunity while trying desperately to hold on to a monopoly it once had!

I've saved a fortune since switching to other ISP/VSPs who do provide a reliable service and great support at a reasonable price.

The only thing Tel$tra does well, is .....OVERCHARGE!!

Telstra not worth the iPhone Anonymous -- 18/06/08

I am really happy Telstra did not get the iPhone and would be more happy if they would never get it in the future as well.

iphone Anonymous -- 19/06/08

I work for a prominent apple reseller and have personally taken over a hundred "pre-orders". F***K TELSTRA? F***K APPLE for being greedy A-holes. What a missed opportunity!

A Loss to Regional Users Bill Hutchison -- 20/06/08

This will hurt people living in regional Australia who want the 3G iPhone the most as Telstra is really the only 3G offering out here.

We just looked yesterday at 3G penetration and even here in Townsville (population 140,000+) we don't have another option, unless we go with GPRS for data service.

As far as Telstra being Australia's National carrier, although they are not with ownership, they still seem to be with their superior coverage.

Next G and thee Sydney Lawrence -- 20/06/08 (in reply to #320104635)

Bill when you get your new iPhone from the Telstra shop operatintg on Next G you will be "COOKIN".

Bring on a Telstra iPhone! Mark Portbury -- 20/06/08

I feel the negative additions to the conversation here regarding a Telstra iPhone don't achieve anything. Don't get me wrong, I'm a big advocate of splitting Telstra up and breaking its unnatural monopoly in the market; its anti-competitive actions have gone on too long.

However, the NextG network offers unequivocally Australia's best coverage and 3G speed. I run a small business computer networking operation and most clients I see want simple email and calendaring on the go; they have no choice other than Telstra for coverage coupled with a comparitively combersome phone such as those based on WIndows Mobile or Blackberrys. And of course if you want 3G (or even any coverage) outside major metropolitan areas, you've got no hope on any of Telstra's competitors (I speak from experience).

Telstra offering the iPhone would be a match made in heaven - there is such a market for a simple, intuitive smart phone that has great speed and strong coverage. I'm sure enterprise customers would be more than happy to ditch their WinMo and Blackberry phones given the Telstra choice.

Who cares? Lord Watchdog -- 21/06/08

Personally I couldn't give a stuff about the iPhone. I already have a PDA/Mobile and it does everything that the iPhone does except the pretty little icons on the screen. It is also more reliable, stronger and will most likely last a lot longer too.

The iPhone is just another lump of mutton dressed up as lamb by Apple to make another quick quid.

Yet again Telstra showing their true colour... Anonymous -- 22/06/08

Sh*t Brown!

Telstra's idea of doing business is stifle the competition by any means possible: dirty tricks, lock in unrealistic contracts, law suits..the list is endless. They are so arrogant that they do not mind offering poor services, catching out Mum's and Dad's with expensive download plans, and doing it in plain view.

These idiots will have driven the company into the ground within 10 years.

Good on ya Apple. Anonymous -- 22/06/08

Telstra who???? who cares, i used to work for telstra for nearly 15yrs and the way they conduct business is atrocious.

Here's the truth, telstra doesnt care for its customers nor share holders, all it cares for is stomping out competition and reaping in the billions of dollars that it pulls in.

Without other carriers we wouldnt have cheap mobile, etc etc etc. and the list goes on.

Do abit of shopping and i guarantee you that there are cheaper carriers out there for the IPHONE.

Telstra 3G iPhone Anonymous -- 24/06/08

This article is incorrect.

Telstra will be recieving the iPhone :)

They're getting it Anonymous -- 30/06/08

I've just checked out the Telstra site and they're getting it. The grumpy Telstra execs must have backed down. Thank god. I was not looking forward to signing up to the sluggish optus 3G.

RE: They're getting it Jon -- 01/07/08 (in reply to #320105399)

why does every1 assume they were never getting it? Just because they didn't announce till the 30/06/08 doesn't mean any thing, sure they may have been delayed because of a tiff with apple, but we will never know. they may have just not announced it till now so they can have some spotlight away from the Optus/Voda announcement.

Proprietary Rubbish Anonymous -- 02/07/08

iPhones are proprietary rubbish!

Much Open Source software cannot be legally run on them because of licencing issues and the way the iPhone is developed.

My advise to to buy an alternative to an iPhone (like a PDA phone for instance), just because it has a little Apple logo on it, doesn't mean it is technically superior!

Telstra and iPhone Anonymous -- 02/07/08

Telstra will provide an iPhone experience for all Australians. Regional and rural Australians in Next G network coverage areas will get to enjoy the full iPhone 3G experience - well beyond the city boundaries serviced by competitor carriers.

They'll provide the coverage, but nobody will be able to use the phone for its i Anonymous -- 03/07/08 (in reply to #320105563)

so it's quite pointless going with NextG really.. unless you are one of the unfortunate ones who doesn't have any other options.

I'd rather save over $1000 pa (what I'm currently saving now) and have 3G coverage MOST of the time, allowing me to use the iPhone properly

For it's intended purposes Anonymous -- 03/07/08 (in reply to #320105645)

heading of previous post cut short

Iphones, Telstra, and whingers. Paul Hunneybell -- 07/07/08

Just my two cents here guys, why not stick to the topic instead of just having "another telstra bash". If your so stupid that you don't do the maths on your telephones before you ever sign up, or when your recontracted, you deserve a $1000 per month phone bill. Telstra charges more because they give a COMPLETE service, not half arsed gsm network with a smidgeon of 3g splashed around cities. Therefor, the I-Phone from telstra offering will be the most complete. For one, the phone will operate on 850 and 2100, meaning you can use it on either telstra or competitors networks with equal pleasure, and if with telstra you'll get the additional benefits of the larger network with faster data speeds. The other I-Phones will be delivered to the public with 2100 band only as far as I understand it, so for one, the other providers I-Phones will be a step down. Now honestly, someone get one of these on Optus, and see how pleasurable it is to download off "I-Tunes" at GPRS speeds (or marginally acceptable 3g if your in the city). I'd rather deal with good old school Alphalink Dialup than an optus GPRS connection, from personal experience with their hideous network. So, at the end of the day, those who want the best service out of their new device will pay more and go with Telstra. Those who only require, or dont care about sub par access and coverage will go with the other carriers. Those who are forced to go with Telstra because they are the only ones who provide service.. take a look at that for a moment, then go harass another Telco to expand its network to your area and see how far you get. At the end of the day, a Telstra IPhone is going to be an IPhone that works as its meant to, and trying to say that Telstra shouldnt get one at all is just childish prattle from people with a chip on their shoulder. And im sure a lot of people who sat and applauded the fact that apple didnt want to run sensis software on the phone, would find that anti competitive if say Telstra was the one blocking another company from allowing it to load its own software onto a phone. Anyhow, rant done. Cheers.