Anger Over Sales Pitch For Mobiles

Newcastle Herald

Wednesday October 11, 2006

By IAN KIRKWOOD

NTELSTRA admits it has been selling 3G or "third generation" mobile phones in Newcastle that do not work on the "NEXT G" network unveiled in Newcastle this week.

Telstra Countrywide manager Chris Cusack defended the practice when contacted by The Herald, saying customers were told the phones were good for "voice only".

Glendale Paintright owner Bob Gregg says he received no such warning, and is furious after buying the phone from Telstra's Glendale store on September 12.

Other Newcastle customers have given similar accounts, saying they were given sales pitches for phones that cannot be used as 3G phones in the Hunter.

Mr Gregg said he bought the Motorola 3G phone on a contract that would cost him $30 a month for two years.

He was attracted by a Telstra advertising campaign that offered "$200 worth of free downloads from Australian Idol" to anyone buying the phones.

"It worked when I tried it in business on Sydney, but when I couldn't get it to download in Newcastle I rang Telstra and they told me there was nothing I could do and to contact the ombudsman if I was unhappy," Mr Gregg said.

"Now it turns out the phone is for an old 3G network they lease in Sydney, and the phone I bought in Glendale won't work on the 3G network in Newcastle. No-one explained that to me at the time, and it wasn't as though it was a spur of the moment thing, I went back a couple of times."

Mr Cusack said Telstra had been selling the Motorola phones on the "2100 3G" network as "voice phones" and warning people that the full 3G capability was only available in capital cities.

He confirmed the phones in question would not work on the NEXT G network unveiled last week by Telstra boss Sol Trujillo because they were "different networks on different frequencies".

He believed customers had been given printouts telling them the phone would not work on the new network, but he would talk with Mr Gregg or any other unhappy customer and resolve the problem.

Mr Gregg said he was stunned at the way Telstra was selling 3G phones that did not work in the Hunter.

"Imagine if I sold paint that didn't stick to what you painted it to?" Mr Gregg said.

Newcastle Federal MP Sharon Grierson said in Parliament on Monday that she hoped Telstra's NEXT G announcement would "hopefully end the absurd situation where people in certain areas of Newcastle . . . cannot access broadband services".

Lewis's View, page 8

© 2006 Newcastle Herald

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