Vodafone crashes Telstra's party

One of the jewels in that crown -- Telstra's fledgling nation-wide 850Mhz 3G mobile network -- is today looking a little faded after a significant announcement by rival Vodafone.

In a little more than two weeks, Vodafone will switch on an upgrade that will immediately allow its own 3G network to deliver data download speeds of up to 1.8Mbps.

This technology -- known as High-Speed Downlink Packet Access (HSDPA) is also at the heart of Telstra's new 3G network.

Now Vodafone has so far has only enabled the increased speeds in selected Sydney and Melbourne metro areas. Telstra's new 3G network will be significantly larger. In addition, Telstra already sells a comparable mobile broadband service based on CDMA/EVDO technology that delivers typical speeds between 300-600kbps, with a limit of 2.4Mbps.

But the Vodafone launch will still allow one of Telstra's biggest rivals to say it got there first on HSDPA.

This is a situation remarkably similar to that currently being faced by Telstra in the fixed broadband market.

Telstra's chief operations officer Greg Winn has admitted the telco has a "substantial footprint" of ADSL2+ technology, but the upgraded speeds thus allowed have not so far been offered to customers.

This is despite the fact that rivals like iiNet, Internode and now Optus have been selling ADSL2+ services for some time.

Telstra has previously said construction of its new 3G network was more than 75 percent complete. So why hasn't the technology been switched on yet?

One potential reason is that if it switches on better fixed and mobile broadband technology, Telstra could be forced by the national competition regulator to provide wholesale access to rivals.

Indeed, The Australian newspaper reported this week that Optus would seek access to Telstra's new 3G network.

However from a customer point of view, one wonders why Telstra puts new technology in place if it's not willing to make it available to customers.

Is Telstra's technology strategy good business sense or misguided? Drop me a line directly at renai.lemay@zdnet.com.au or post your opinion below this article.

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1. The Australian reference... Anonymous -- 04/10/06

   ...to Optus seeking access - got a link please???

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2. Telstra are pigs Anonymous -- 05/10/06

   Telstra are just pigs - they keep dragging Australia back further and further in technology and more than anything exist to provide a disservice to the Australian community. Please national competition regulators, end the monopilistic triviality of this telco and open FAIR wholesale access..

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   1. Telstra Sydney Lawrence -- 14/10/06

      Sounds like a terminal case of jealousy. Would advise help via counseling before you are totally consumed.

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3. Er... didn't Telstra just launch HSDPA? Anonymous -- 06/10/06

   Guess you can't always get your predictions right.
   
   http://www.zdnet.com.au/news/communications/soa/Telstra_launches_1_billion_HSDPA_network/0,130061791,339271499,00.htm

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4. Telstra 3G Jon Petersham -- 06/10/06

   At the end of the day . telstra have invested $1 billion in new mobile infrastructure for the benefit of ALL Australians (98% coverage around Australia). yes...thats $1 billion dollars more than Optus and Vodaphone have invested in their pathetic little 3g metropolitan area mobile networks. why dont they invest for the good of the entire country...oh yes thats right optus and Voda have to make money for the Sinapore, NZ bosses...far to difficult to invest their profits in a competitive network infrastructure which would bring true competition to Australia. not half arsed regulation pretending to provide a competitive environment

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   1. to true to true david lee -- 07/10/06

      Where is optus with pay phones? where is optus in the country with techs and infrastructure, rather then leasing someone elses

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   2. OPTUS; Leeching their way to a simpler existance. Anonymous -- 14/10/06

      Almost 2 decades with their own mobile network.
      
      It is obviously cheaper to go to court and pay legal fees to get access to another "competitors" network than to spend the equivilant billion dollars to improve their own.
      
      On the topic of the NextG.. mate I tried it at a T store and WOW.. beats the hell out of my old and thankfully retired 3 Access

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   3. Vodaphone is a NZ company? Alf Nonymous -- 07/10/06

      I've never heard of this company Vodaphone. It's a NZ company, is it? I assume that's New Zealand, as in that little country just off Bondi Beach?

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5. A different perspective Anonymous -- 16/10/06

   I am from overseas, living here for a temporary period and find the regulatory regime here in Australia quite shocking.
   I can understand where 2 corporates may choose to cooperate and share network to reduce their costs, but I fail to understand how this can be imposed. From what I read, the regulation here also controls pricing! I side with Telstra, and I although I agree that its not in Telstra's best interests to implement a network and not activate it, it may definetely be in its better interests to save it from regulatory greed.
   
   I think people in Australia need more exposure to concept of "Limited Governence".

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6. telstra 3g competition Anonymous -- 18/07/07

   If telstra are genuine about giving Australians the best deal possible then they will let their wholesale customers have access to their 3g network so there is some competition. Until then dont sprout off about Telstra being the only company that is interested in delivering services to all australians.

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