Telstra To Tell 8.4m To Buy A New Phone

Sun Herald

Sunday November 20, 2005

By DENIS GREGORY

TELSTRA'S 8.4 million mobile phone users will need to buy a new handset when the company switches to its proposed new generation technology, beginning next year.

As part of a major restructure announced last week by Telstra boss Sol Trujillo, Telstra plans to close its present three networks, GSM, or digital, CDMA and the newly-launched 3G, and replace them nationally with one system.

Telstra spokesman Rod Bruem said the existing phones, some costing as much as $1000, would not work on the new network and all Telstra customers would need to upgrade.

"We will probably offer deals to our customers to change over and could include the new handsets as part of contract renewals," he said.

"But prices of the new phones should be comparable with the 3G phones in our shops now."

"We obviously want to hold on to our customers and look after them by minimising any disruptions through the technology change."

Former deputy prime minister Tim Fischer, a strong advocate of the present CDMA network, said he was deeply concerned about Telstra's proposals, particularly as the replacement low-frequency GSM network was not yet operational in the southern hemisphere.

He said: "Not so fast, Sol, in junking the CDMA mobile freeway, which is able to be upgraded easily to 3G or 4G.

"I accept GSM can also be upgraded but possibly at a bigger cost. We need to flush out the details and we need to see a lot more about the proposed footprint coverage of the new network.

"We also need a public inquiry on CDMA versus GSM because so far its been a closed process."

Telstra, with 46 per cent of the mobile market, has 7 million customers using the standard digital GSM network while 1.4 million, mostly in the country, are linked to CDMA which gives a better coverage in country areas.

The present 3G network Telstra, introduced only months ago, provides high-speed data and video calls to mobiles.

The new generation system will operate on the same frequency as the CDMA system, which means its range should be as good.

The new system will also utilise 80 per cent of existing equipment, including phone towers.

Mr Bruem said with Telstra customers having access to one network, the company could better focus on filling in black spots.

"But the change will be a gradual process," he said. "If people buy a new phone today, they should not be concerned about suddenly having to throw it away.

"The present networks will continue until 2008 and because most customers upgrade their phones every 18 months, there should not be any worries."

> Trujillo on a knife-edge: Editorial, Page 30

© 2005 Sun Herald

Back to News Index | Back to Home