Friday, 17 July 2020 11:40

Huawei says 5G ban effect is showing in Telstra's higher mobile prices Featured

Huawei says 5G ban effect is showing in Telstra's higher mobile prices Image by GraphicMama-team from Pixabay

The Australian arm of Chinese telecommunications equipment vendor Huawei Technologies claims its warnings about the ban on use of its 5G equipment leading to higher mobile prices in Australia has been aptly ilustrated by the fact that Telstra has jacked up its prices.

In a statement, Huawei Australia said the British Government had already confirmed that its 5G ban on Huawei would cost UK operators at least £2 billion ($3.59 billion) in extra costs that would be passed onto consumers and would delay 5G deployment by at least three years.

However, the company said the Turnbull Government had made no such admission about the true cost of the 5G ban on Huawei, but the Telstra price hike confirmed that Australians would now be paying more for mobile services – and getting second-class 5G technology.

It said local economics advisory firm Frontier Economics had already found that local 5G deployment costs would go rise by at least $2.1 billion because of the 5G ban which it correctly forecast, "will be recovered from consumers through higher retail prices".

And the firm added, globally respected economics adviser Oxford Economics had forecast that the Huawei 5G ban would mean 5G rollout costs in Australia going up by 30%, adding that those higher costs would mean three million Australians would miss out on 5G.

Huawei Australia said before the ban was imposed, the company had planned to contest Telstra's 5G tender and try to win business from its long-time monopoly provider Ericsson.

But Huawei's exclusion meant Ericsson was able to continue its single-supplier relationship without any competition.

Huawei Australia chief corporate affairs officer Jeremy Mitchell said: "Telstra's price hike reveals the inconvenient truth for the Federal Government – The Turnbull Government's 5G ban on Huawei will have to be paid for by ordinary Aussies.

"Without Huawei adding price competition to the market, the European duopoly vendors face no price competition and we now see consumers paying the price for that.

"Telstra's price hike means an average family of four on some Telstra mobile plans could be paying another $700 per year for their 5G services than they were before.

"Australia already has some of the highest fixed broadband prices in the world thanks to the $51 billion spent on the national broadband network – we are now heading the same way on mobile too."

Read 4419 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


Hybrid cloud promises to bring together the best of both worlds enabling businesses to combine the scalability and cost-effectiveness of the cloud with the performance and control that you can get from your on-premise infrastructure.

Reducing WAN latency is one of the biggest issues with hybrid cloud performance. Taking advantage of compression and data deduplication can reduce your network latency.

Research firm, Markets and Markets, predicted that the hybrid cloud market size is expected to grow from US$38.27 billion in 2017 to US$97.64 billion by 2023.

Colocation facilities provide many of the benefits of having your servers in the cloud while still maintaining physical control of your systems.

Cloud adjacency provided by colocation facilities can enable you to leverage their low latency high bandwidth connections to the cloud as well as providing a solid connection back to your on-premises corporate network.

Download this white paper to find out what you need to know about enabling the hybrid cloud in your organisation.



It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.


Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News