Trujillo dismisses 3G price war

Telstra chief executive Sol Trujillo today said price cuts by competitors on third-generation mobile services were irrelevant to his company.

"There is no company in Australia that has the coverage, quality, capability and services that's even close, so I don't compare our pricing to others' pricing," Trujillo told reporters this morning as he outlined a new relationship with the Australian Rail Track Corporation.

Sol Trujillo

"So to me, that's not a relevant issue," Trujillo added.

Telstra mobile rivals Hutchison and Vodafone both slashed the cost of their mobile broadband plans last week -- services competing directly with Telstra's Next G 3G mobile network.

For example, Hutchison launched three mobile broadband plans at AU$20, AU$30 and AU$40 per month, offering respective download limits of 500MB, 1GB and 2GB. It also launched a new flat-rate suite of services known as X-Series, which bundles mobile broadband with applications such as Skype, eBay and instant messaging.

Vodafone responded by launching a range of new plans offering greater mobile broadband value -- for example, offering a new 2GB per month plan at AU$79.95 on a one or two year contract, and cutting its 1GB plan from AU$99.95 down to AU$59.95 a month for customers on a contract.

Telstra's Next G network is substantially larger and faster than those belonging to its rivals, however, the telco also charges higher prices -- for example, AU$114.95 for a 1GB per month plan, or AU$184.95 for a 3GB per month plan.

Telstra does offer cheaper plans that are speed-limited to 256kbps -- for example AU$84.95 for a 1GB per month plan.

Trujillo also declined to comment on recent reports that Telstra had re-commenced discussions with the telecommunications industry and other groups on the construction of a nationwide fibre to the node network.

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Talkback 5 comments

    True Broadband Future OptionsSimon L Kelly -- 03/04/07

    Attn: Vodafone, Hutchison & Telstra Australia needs just 5 Simple Plans @ 14mbits speed.

    2GB $29
    5GB $49
    10GB $79
    25GB $129
    50GB $169 all on 12month plans.

    HSDPA & HSUPA Networks will breakeven on this Price Matrix quickly suiting most people's needs.

    email me on what you think : mavenglobal@gmail.com

    Trujillo dismisses 3G price warAnonymous -- 04/04/07

    is there no end to Telstra's arrogance?

    Arrogance?Anonymous -- 04/04/07 (in reply to #320077364)

    If a company has a footprint that is 100 times larger in area than another, should they compete on price?

    Is it arrogance or simply reafirming a different value proposition.

    compete on price, yesAnonymous -- 05/04/07

    should Telstra compete on price, yes, if they want to survive. They're no longer the ruling monopoly, declining perhaps but not ruling.

    How much of that footprint is actually required by an individual? The usable footprint for me is the same.

    Can't believe telstraAnonymous -- 30/11/07

    $184.95 for a 3GB per month plan and Vodafone a much small player in Australia can afford to go down to under $40 per month for 5GB. Sol Trujillo you have no idea what a customer needs.

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