Telstra tells OPEL-less farmers: Use Vodafone

Telstra has suggested a solution to farmers worried about what will happen now that OPEL's planned WiMax network has been scrapped — go to Vodafone.

Phil Burgess Credit: Telstra

There is a common belief that the bush lost a lot when the government cancelled OPEL's network, but the company's planned coverage wasn't going to be as broad Vodafone's future 3G network, Phil Burgess, Telstra's group MD of public policy and communications, said.

To NSW farmers asking what they are going to do now the OPEL project has been shut down, Burgess said: "You can take Vodafone," adding the operator does everything OPEL was going to do "and then some".

Late last year, Vodafone announced plans to increase its 3G coverage to 95 percent of Australians by the end of this year — up from the 55 percent of the population it currently covers.

"Vodafone's a serious player," Burgess said.

Burgess noted Telstra Next G covers everything that Vodafone covers as well as everything that OPEL was going to cover.

OPEL's lack of action doomed its project according to Burgess. "They had a promise of AU$1 billion for eight months, and in eight months they couldn't produce a plan," he said.

Rural Australia is better off with Telstra and Vodafone, he said. "OPEL was a joke, and it was a bad joke."

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Talkback 29 comments

    Vodafone!?Anonymous -- 11/04/08

    The Vodafone network will have to get a lot better than it is now. I am using Vodafone and like to call it "Wireless Dial-up" its that slow and useless.

    How is Telstra telling people to go with VodaphoneTommy -- 11/04/08

    all they are saying is that there appears to nly be two serious players in the bush, Telstra and Vodaphone.

    Once again a good story is ruined by a stupid headline.

    IdiotAnonymous -- 11/04/08

    Is this a way of slyly admitting that Telstra is too expensive for most?

    Grow UpAnonymous -- 11/04/08

    So, the spin doctors at TelStra have found a grown up way to say to Optus, Elders, and especially the country folk "nah nah nee nah nah - we still have our monopoly'. Hmm, I wonder if Telstra would reccommend me to Vodafone if they did fixed lines like Telstra did.

    You know, it would have been nice to see the Opel network get up . . . the small motels and cafes in the outback would get a bosst from the 30 or 40 so sales reps Tel$tra would ship in and knock on the doors at every town where Opel would go in

    Opel was never going to offer fixed services in most bush areasAnon -- 12/04/08 (in reply to #320099563)

    Compare apples with apples not with lemons.

    Vodaphone would perform better then Opel would have been available sooner. There is no monopoly in the bush, just a failure for most companies to invest any money in areas where they do not get a quick and easy profit.

    interestingAnonymous -- 13/04/08 (in reply to #320099636)

    are you implying that businesses should invest where there is not quick and easy profit?? That is the job of governments and instead of putting money into those places where Telstra were not already covering, they chose to artificially prop up competition by giving money to Optus to roll out a competing network. If the bush wants to complain then those without access to NextG can complain and they are the only ones with a legitimate argument. The others cannot seriously complain because it's a little more expensive than broadband in the city. That's life. If it costs more to roll out with less return on that investment.....it's going to cost more!!

    Telstra says go To VodafoneAnonymous -- 11/04/08

    I think the reason behind this advice is possibly the Next G network is reaching its capacity and Telstra may not want to install more capacity before they get a government handout. If farmers joined Next G they will be disappointed as it begins to slow down. So join the opposition for now until we get a grant and speed things up then we will come after your account seems to be the play here.

    OPEL Less - Vodafone Open DoorAnonymous -- 11/04/08

    In Regional Areas of Australia that Vodafone will offer 3G Regional 900Mhz later this year can handle more traffic for each Base Station over Telstra's Next G with just a little less coverage & with demand on Video it gives choice for consumers.
    Time will tell but Vodafone Australia get this right it means a Full roll out throughout Vodafone Worldwide.

    E: mavenglobal@gmail.com

    850 / 800 MhzAnonymous -- 12/04/08 (in reply to #320099595)

    The difference in frequency will barely put a dent in the coverage.

    Capacity and fundingAnonymous -- 12/04/08

    How could it reach capacity? there is ample room to grow as well as the additional capacity that will be freed up when CDMA finally gets switched off. BTW . The Next G network was built with 100% Telstra money and no government handouts like Opel was hoping for.

    NextG was built with handoutsAnonymous -- 12/04/08 (in reply to #320099609)

    NextG was built with handouts indirectly...The CDMA towers and backhaul in rural areas that CDMA and now NextG uses, some of it was built with government money..

    NO!Anon -- 12/04/08 (in reply to #320099612)

    Directly or Indirectly you are 100% wrong.

    The so called government money people love talking about was actually returned to them when Telstra was privatised. There are no assets that Telstra own that were built prior to deregulation that have not had the costs repaid and anything since was paid for by the company and shareholder's funds.

    Re: NOSJT -- 12/04/08 (in reply to #320099634)

    Yes indeed.

    Not only that, but as I understand it, lets go one step further! In 1975 the PSTN (public switched telephone network - copper) was found to be in debt to the tune of $4b! So in 1992 the PSTN was vested to (the now) Telstra and so was the $4b debt. Plus one would assume the further interest accrued between 1975 - 1992.

    When Telstra was privatised this PSTN debt (plus interest?) was repaid by Telstra shareholders! So this government gifted myth is exactly that, a myth.

    Conversely, when competition was introduced, Optus got every conceivable concession under the sun, to get where they are today and at Telstras expense.

    Yes there has recently been a high court case which reaffirmed competititors rights to access Telstras network, as was outlined when privatised. However, I'm the high court certainly didn't say the G9 or anyone else could forcibly take over the network bough and paid for by Telstra shareholders!

    Is that right?Anonymous -- 12/04/08 (in reply to #320099634)

    Feel free to come out my way, i'll show you first hand 15km of 100% TAXPAYER funded fibre optic back-haul, laid after T3 - on a written promise from Telstra to upgrade my community to ADSL.

    They took the money under connect australia - yet did nothing.

    That's not what i'd call a handout as such, more... theft, actually. ;)

    And yes, i can supply direct proof of everything i'm saying, and yes, i have informed the DBCDE.

    Re: Is that rightSJT -- 12/04/08 (in reply to #320099639)

    If that is so, you should take it further.

    Telstra supporter or not I am a taxpayer too, that's why I applaud the axing of OPEL.

    However, regradless of your situation, it still doesn't rewrite history as some try to!

    only,Anonymous -- 12/04/08 (in reply to #320099634)

    theres a little thing called the USO.

    USO is specifically intended for spends in the rural areas (to help improve services towards what metro areas enjoy...)

    i believe Telstra has intake of USO yearly but once it goes into the monolith it is impossible to determine from the outside whether that money really DOES get spent in rural areas as it should.

    in any case i find it very hard to believe telstra did *not* avail itself of the assistance when it built the rural branches of its Next G network. after all, thats what the funds were *there* for.....

    even if USO was intended for wired spends, again i would be surprised if USO funds didnt give at least a BIT of help to that rollout (backhaul for example, being a wired component).

    USO?Anonymous -- 12/04/08 (in reply to #320099640)

    It is universally recognised that the USO runs at a loss, so what your point?

    YES!James Bell -- 13/04/08 (in reply to #320099643)

    The CDMA Network was built with and continues to this day to receive government aid, so to speak about Opel as being any diferent is hypocritial. It was the backhaul and base stations from the CDMA network which effectively subsidised Telstra's NextG rollout.

    I'm not so sure the USO is universally recognised as running at a loss. Independant analysis has also identified many benefits Telstra receive through increased exposure and coverage spruiking (i.e Australia's largest network*).

    YESAnonymous -- 13/04/08 (in reply to #320099668)

    Ok I stand corrected. Everyone in Australia, apart from you, knows the USO runs at a loss!

    USOSimon -- 02/05/08 (in reply to #320099692)

    I also do not believe that the USO (PSTN) runs at a loss. Maybe it doesn't operate at the target 18% return but no way does telstra lose money because of USO.

    If it so great...Aaron -- 02/05/08 (in reply to #320100808)

    Why did SingTel / Optus hand back the USO when they won a tender several years ago. This was at a time when the Liberal government were trying to use Telstra as a political football. They were happy to take over the USO and the hundreds of millions of dollars until they realised the true cost of maintaining the USO.

    I doubt it technically loses money but when you consider most companies will not invest in anything unless it delivers double digit returns and as inflation is over 4% a loss is not -0.1%, a loss is more like anything below a 9.9% return.

    I have seen stories of Telstra spending $30,000 running cable to deliver a service to individual residential home, at even $100 per month in income at 25% profit it would take 100 years just to recover the cost.

    Optus?Karlston -- 12/04/08

    Was it an oversight for PB not to mention Optus even though they're rolling out their 3G network to rural/regional areas in similar fashion to VodaPhone?

    Optus 3G will be here by end of this month, but no sign of VodaPhone yet.

    end of the monthAnon -- 12/04/08 (in reply to #320099613)

    LMFAO

    I will believe it when I see it, I'll be back in may to correct myself if it happens but it will be more likely to be end of April 2010 at the earliest.

    What a laughLord Watchdog -- 14/04/08

    Telstra whinges about not being allowed to build this network and when it looks like their opposition have been stabbed in the back by their Labor mates they guffaw like hyenas and tell people that they are on their own.

    All this shows is that Telstra is an arrogant, out of touch company run by a bunch of brainless twats.

    Laugh indeed!Anonymous -- 14/04/08 (in reply to #320099726)

    Yes ironic twist of fate.

    This time last year it was the brainless twats known as Optus, Coonan and Howard all back-slapping and sipping cognac.

    I believe this is referred to as Karma.

    *Sigh*James Bell -- 15/04/08 (in reply to #320099727)

    Anonymous, Why not actually do some research instead of making baseless, non-factual comments. Think about the 900,000 underserved homes and the many thousands more that were going to have affordable broadband for the first time instead of the value of your Telstra shares.

    Lest we forget.Sydney Lawrence -- 15/04/08 (in reply to #320099727)

    I will never forget that traitorus little Johnny Howard in the company of Coonan and a gaggle of Optus executives in North Sydney upon announcing the Opel gift saying (referring to Australia's Telstra) "my Government has no favourites" while laughing and drinking to a Singapore owned company. We have long memories Mr Howard.

    MeeeeemooorieeesLord Watchdog -- 23/04/08 (in reply to #320099800)

    I have memories of Labor privatising Aussat, now known as Optus, and I also remember that Optus has not been Australian-owned to the level that Telstra is since they [Optus] was flogged off.

    At least Liberal placed a limit on the foreign ownership of Telstra and I think that is a good thing. Labor don't care - they are more interested in saving their khybers than looking after the national interest.

    Great commentAnonymous -- 23/04/08 (in reply to #320100256)

    "they are more interested in saving their khybers than looking after the national interest"

    This was the government that has attacked Telstra at every turn, offered millions to Opel and cornered the ACCC to act as another Telstra basher.

    I read what you said as they did all of this for political reasons and not in the best interest for the country or in other words reverse all of these and they would be the best things for the country ... give Telstra the contract and tell the ACCC to base actions on fact and not emotion.

    I finally agree with you Lord

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