Telstra dabbling in smart payphones, yet again

Stuart Corner
Tuesday, 09 March 2010 15:28

IT Industry - Strategy

Telstra is to trial smart payphones with Internet access and in-built WiFi hotspots from Perth-based PieNETWORKs. Telstra has tried unsuccessfully at least four times in the past dozen years to deploy similar products in its network.

PieNETWORKs (ASX: PIE) has announced that it has entered into a two month exclusive negotiation period with Telstra "in order to agree the terms for a partnership for the deployment of a pieNETWORKS Hotspot Webphone in a market assessment for the Australian market."

The Hotspot Webphone is designed to be installed "in all the places people visit and gather." It offers "a telephone company grade public payphone service, with Internet access through the large bright screen, and wirelessly through laptop computers and other handheld products."

This is not Telstra's first foray into these devices, nor its first engagement with Pie Networks. iTWire reported in January 2007 that Telstra had trialled Internet kiosks from Pie Networks at 10 installations around Australia as the result of an initiative from technology consultancy, SMS Technology and Management. SMS CEO, Tony Stianos, claimed at the time that SMS had "conceive[d] an opportunity, architect[ed] a solution and take[n] the concept to the client in an unsolicited way."

However our story at that time concerned yet another Telstra 'smart' payphone initiative. We reported that Telstra had trialled a kiosk that combined a Telstra payphone with an ANZ automatic teller machine. The first kiosk had been installed in Centre Road, Bentleigh in Melbourne's south-east and the two companies said they planned an initial pilot in up to five locations in Melbourne's suburbs. Further rollout was to be based on customer feedback on the concept. Nothing seems to have come of that project.

Our report contained details of no fewer than three other initiatives by Telstra to deploy multimedia payphones. None of these was more ambitious than the first dating from 1997. The device was designed and developed in house by Telstra, which called for expressions of interest from manufacturers for rollout of an estimated 10,000 units in Australia and 40,000 for export.

The project was subsequently abandoned and all the initial units removed from the network. Maybe this time they will get it right. Pie seems to be on track. It has been growing steadily for a number of years and reported in January that it was mid way through a rollout of 70 Hotspot Webphones at Westfield and AMP shopping centres in New Zealand.

It has also shipped demonstration units to South Africa and Mexico for "potentially large scale rollouts."