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Telstra To Turn On 3g Network Early
The Age
Thursday September 7, 2006
TELSTRA is expected to switch on its $1.1 billion third-generation mobile network as soon as October 6, three months earlier than planned, as part of a move to boost interest in T3.
The early roll-out comes amid mounting pressure on Telstra to deliver on a five-year transformation strategy after a shock decision last month to dump plans for a $4 billion fibre-optic broadband network. Chief executive Sol Trujillo has been in the US this week, including New York, in an attempt to win over institutional investors such as David Herro, the fund manager who helps manage $US65 billion ($A84.4 billion) at Harris Associates. The trip is Mr Trujillo's second to the US in less than a month. Work began on the national network last November and was expected to be turned on in the first quarter of next year. But it is believed Mr Trujillo wants to switch it on at the investor briefing in Sydney on October 6, a key date before the float in November, which will be followed by a major advertising blitz. Telstra has had a 3G network in operation for a year in some metropolitan cities as part of a joint venture with Hutchison Telecommunications. But the new wireless network will make Telstra the only carrier offering 3G across the country, improving coverage in rural areas and allowing customers to download video clips and music videos. Over time, it will offer speeds up to five times faster than present 3G services. Analysts are concerned about whether Telstra can source the handsets needed for customers to access the new network. But a Telstra spokesman said the company had overcome any problems over handset availability thanks to mobile-phone sourcing partner Brightstar. He declined to give an exact date for the roll-out of the new network, instead sticking to the previous commitment of early next year. Telstra has said one that of the benefits of the network was that it would not be "tied to regulation". But the competition regulator could still be called on to ensure fair access for rivals, a battle that cannot begin until the network is operating and commercial arrangements are in place. A rival unhappy with the arrangements can complain to the regulator.Telstra could even decide not to give rivals access to the network, a move that would almost certainly attract opposition.
© 2006 The Age
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