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Telstra loses monopoly on Tassie government cellphones
Telecommunications
Telstra loses monopoly on Tassie government cellphones | Telstra loses monopoly on Tassie government cellphones |
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| by Stuart Corner | |
| Tuesday, 24 June 2008 | |
The Tasmanian government has ended its five year relationship with Telstra as its sole provider of mobile phone services with the award of a three year contract to Optus, but says it expects Telstra to retain a substantial portion of the business because of its superior coverage.Featured Whitepaper
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“The contract doesn’t guarantee Optus a share of the $4 million spent across Government on mobile services but there are obvious advantages to having more than one provider supplying the Government." He said that a new agreement with Telstra was still under negotiation and that Telstra was expected to retain a substantial proportion of the total spend because of its coverage advantage. Agencies will be able to assess the price and product offered by each competitor in making a choice of provider and Optus prices are considerably cheaper than those currently paid by Government [and] Optus has announced plans to expand its coverage in Tasmania and to roll-out 3G capability and this is likely to make the Optus service attractive to agencies.” Telstra is somewhat out of favour in Tasmania because there is dissatisfaction with the high prices it charges for Internet backhaul to the mainland which is stifling competition in the broadband Internet access market. |
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