Why Telstra does not want you to buy its iPhone 3G

Stan Beer
Friday, 11 July 2008 09:23

Business IT - Technology

The iPhone 3G is a revolutionary device which breaks a lot of communications boundaries and that is precisely why Telstra does not want a bar of it. After looking at its voice and data plans, it is crystal clear that Telstra offers the iPhone 3G because it has to not because it wants to.

Let's be honest here, Telstra could not very well completely opt out of the iPhone 3G game. It would not look good for its image if its two main competitors stocked something so popular while the largest player didn't.

So notably, after keeping the public in doubt for so long, at the 11th hour Telstra announced that it would be an iPhone 3G player. However, it never intended to be a real player.

The iPhone 3G dilemma for Telstra stems from the same two problems that have afflicted the organisation since the beginning of the organisation. Telstra is vertically integrated and it is run by sales divisions that put the fast buck ahead of strategic vision.

As a result of these afflictions, Telstra has always been prepared to hold back new technology so that it can sell more profitable obsolete technology. Witness today, Telstra still has no VoIP strategy, preferring instead to let its still massive PSTN customer base slowly erode until it is forced to provide a VoIP product.

As far as the iPhone 3G is concerned, Telstra knows very well that it is no ordinary mobile phone. It is really a hand held Internet computer and iPod with a number of useful features including push email and of course the most popular online music store in the world.

The popularity of the iPhone and the Apple name is forcing carriers to strike deals that are favourable to Apple but less profitable per unit for the carriers than those with other mobile phone makers.