Stuart Corner
Tuesday, 11 December 2007 16:44
Opinion and Analysis
Page 2 of 3
I'd have to say that with three mobile networks now set to serve sparsely populated areas of Australia, competition is starting to look somewhat un-natural, and
only days ago I suggested that the huge price differentials for HSDPA data services between the offerings of Telstra, Optus, Vodafone and 3 were only sustainable while Telstra enjoyed a huge coverage advantage over its rivals.
A few years ago some sanity seemed to creeping into this overbuild with Telstra and 3 announcing plans to share 3G network radio infrastructure. That gave them a huge cost advantage over Optus and Vodafone who were quick to follow suit. But the Telstra 3 deal was torn up when new CEO, Sol Trujillo announced plans for Next G and the Vodafone Optus deal was effectively dead when Optus announced its 3G network expansion. Vodafone confirmed this today saying that the joint-venture with Optus would continue for major metropolitan areas, but that Vodafone would go it alone in all other parts of the country.
This leaves 3 somewhat in the poo, to but it bluntly. It has spectrum only in major metro areas and did have a roaming agreement with Telstra onto Telstra's first 3G network, operating at 2100MHz, for other areas. But with the launch of Next G at 850MHz Telstra ceased to expand that network and is adamant it will not wholesale 3G access to any other operator.
There has for years been speculation that Vodafone would throw in the towel in Australia (generally its parent likes to be number one or two in the markets in which it operates). Today's announcement should put an end to those rumours, or rather redirect them onto Hutchison Telecom, parent of 3.
How all this will pan out is anybody's guess. It seems hard to believe that three separate networks will survive, and Telstra has the huge advantage of being first mover, an established presence and brand in rural Australia and lots of content to offer 3G subscribers via BigPond.
