Liberal Party Senator blames Labor Gov’t for losing Telstra CDMA leverage

Alex Zaharov-Reutt
Sunday, 27 April 2008 18:27

Opinion and Analysis

What seems inevitable is a spike in calls and complaints to Telstra over the next few weeks and months as more new rural and regional Next G customers discover blackspots they never encountered before using CDMA.

It’s a natural part of any mobile phone network – even the existing 2G and 3G phone networks have blackspots today.

But now that the CDMA network is closing, reliable mobile communications are once again a major issue for rural and regional customers.

Telstra will need to do all it can to further improve Next G coverage to ensure that customers are happy – and aren’t, in populated rural and regional areas – tempted to switch to the Optus and Vodafone 3.5G networks due for 96% population coverage by the end of the year.

Of course one can expect that the new Optus and Vodafone networks will have coverage issues, too – especially as 96% population coverage does not equal Telstra’s 98.9% population coverage claim.

Whereas Optus and Vodafone’s new networks will still be brand new – and blackspot prone – upon completion by December 2008, Telstra will have had months to iron out coverage blackspots, and will be offering data speeds – for wireless Internet on computers and phones – at far faster speeds than Optus and Vodafone.

This will force Optus and Vodafone to be more price competitive, something that will, in turn, force Telstra to be more price competitive too – or at least, so competition theory dictates.

Whether the Federal Labor Government has truly lost leverage with Telstra by finally allowing the CDMA network to close may well simply be a Liberal party ambit claim – the fate of the national fibre broadband network that Labor is promising Australia hangs in the balance, with Telstra wanting to win the contract.

Whether Telstra will ultimately win, or not, is unknown. But regulatory and government pressures are something the Federal Labor Government can still dangle Telstra’s way, with happy customers and strong coverage firmly in Telstra’s interest no matter what happens with the fibre network.

So, Telstra, I hope you’re prepared to handle a potential flood of concerns and complains from ex-CDMA customers come Tuesday, April 29 – with the watchful eye of the Department of Communications sure to be looking your way.

Good luck to you, Telstra – and all the new rural and regional Next G customers, who will be breathing down your neck to fix remaining coverage problems, and quickly!