Telstra’s Not Happy About Optus’ iPhone Claims

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12:19PM June 13, 2008 | Nick Broughall

telstra vs optus.jpg

Telstra are a little bit miffed at Optus at the moment. Of course, they’re always miffed at Optus, but what makes this particular development interesting is that it stems from the iPhone.

You see, when Optus announced that they’ll be releasing the iPhone on July 11 the other day, there was a little comment in the press release that wasn’t exactly, well, relevant:

“iPhone 3G is the handset Australians have been waiting for,” said Paul O’Sullivan, Optus Chief Executive. “With Optus, more iPhone users can enjoy 3G services as we expand our network to 96 percent of the population by December 2008 and 98 percent by December 2009.”

The problem with this little comment is that Optus are expanding their 3G network using the 900MHz spectrum – which the iPhone does NOT support. The iPhone works on the 850Mhz (used by Telstra’s NextG), the 1900Mhz and the 2100MHz (the frequency Optus uses at the moment for its 3G network).

So what have Telstra done about it? Called in their lawyers.


Yesterday afternoon Telstra’s legal people sent Optus’ legal people a fax, stating:

“Telstra is concerned that Optus may represent to customers that they can enjoy a range of 3G features and services with Optus using a 3G device and that they will be able to access those services in more places as Optus expands its network. However, in fact those features and services will not be available if the 3G device is incompatible with Optus’ 3G 900MHz network”.

Telstra feels that this violates the Trade Practices Act and are prepared to take the matter to the ACCC.

The question now is whether or not this is just Telstra trying to steal some of Optus’ thunder because they don’t have the iPhone, or whether they’re simply shooting the first arrow before they make an announcement about the iPhone themselves. Their official line regarding the iPhone is: “Telstra is the market leader in mobiles and we aim to stay that way, so while not commenting on iPhone or our plans specifically, watch this space.”

What that means is anyone’s guess.

[iPhone 3G on Giz]


Comments

  • Jared

    June 13, 2008 at 1:37 PM

    Well Optus does use the 2100MHz spectrum which is a 3G spectrum, I really don’t know why Telstra is up in arms. Yes, the 900Mhz is better (Better range) but the iPhone does work on the 2100MHz or UTMS spectrum as well. So you can get 3G. However, the range and speed will not be as good. Next G is what they call HSDPA which uses 850MHz spectrum. Which means, faster speeds and better range. Optus are building a 900MHz network and the iPhone does not support it. But didn’t Telstra stop and think that maybe they are expanding the 2100MHz spectrum? Anyway we still have 2100MHz, and no where in the press release from Optus does it say they are using 900MHz, so to me they are talking about 2100MHz. So really, Telstra’s got nothing.

    Now Vodafone doesn’t use 850 either. They only have 2100MHz for 3G, so they are both in the same boat. Anyway, even if Telstra gets the iPhone, the only way I will stay with them is if they have a better deal than Voda or Optus. And the chances of that are……small. Guess we will have to wait and see.

  • angus

    June 13, 2008 at 2:02 PM

    I hope they get the iPhone, in Tasmania they are the only provider with decent coverage… Vodafone and Optus will basically kill the iPhone in Tassie.

  • Jared

    June 13, 2008 at 2:17 PM

    Telstra are just trying to buy some time while they negotiate with Apple. Seriously though, if the iPhone will not work on the Optus network at the capable speeds, why the hell did they bother with it? Of course big brother Singtel may have something to say on the matter.

  • Phil

    June 13, 2008 at 3:12 PM

    Fight Fight Fight….
    I will go with the first provider that offers the magic number of cents per mb on a totaly flexible plan or one with 100mb included and x cents/mb on top of that.

    As long as they are ripping us off I don’t care if they hurt each other a little bit.

  • Ben Anderson

    June 13, 2008 at 3:32 PM

    I find anything that Gizmodo has to say about the iPhone, Vodafone, Optus or Telstra is null and void when they have those Optus advertisements sprawled all over the page.

    What’s Gizmodo’s policy when they provide advertisements for a company? Is there any guarantee that they’re acting impartially or is there a guarantee that they’ll treat you well?

  • Nozlaf

    June 13, 2008 at 3:37 PM

    Telsta obviously have told Apple how it is going to happen.

    Steve doesn’t like being told how things will happen.

    Good for optus/vodafone

    Thing that really annoys me is that if the iPhone was to be released on the 11th why on the 13th is there still no official pricing?

  • Nick Broughall

    June 13, 2008 at 3:49 PM

    Editorial has always been, and always will be, separate from advertising on Gizmodo AU. I have no say over who advertises on the site, so advertisers have no say on what I write.

    That’s a pretty common attitude across most media outlets. Granted, there are some sites out there that use editorial incentives for advertisers, but I’m happy to say that we’re not one of them.

  • Simon Lawrence

    June 13, 2008 at 4:32 PM

    Specs from the Apple Au website
    http://www.apple.com/au/iphone/specs.html

    Cellular and wireless
    UMTS/HSDPA (850, 1900, 2100 MHz)
    GSM/EDGE (850, 900, 1800, 1900 MHz)
    Wi-Fi (802.11b/g)
    Bluetooth 2.0 + EDR

  • Jess

    June 13, 2008 at 4:33 PM

    Jared, I think you’re missing the point.

    I’m live in a fairly decent size town about an hour from Melbourne. I’m already an Optus customer, and after reading that Optus are extending their network so pretty much everyone will have 3G I preordered an iphone and paid the deposit.

    Now it turns out that yeah we’re going to have 3G networks in our area, but not 3G that I can use my iphone with. I was totally misled. If it wasn’t for Telstra I would have handed my cash to Optus, cracked open the box and wondered why my 3G phone doesn’t work on my 3G network. And that’s exactly what is going to happen to everyone living in these areas who doesn’t hear about this story, unless Optus make it crystal clear to the public that the iphone’s 3G features are useless unless you’re in a major city.

    Now I need to get my deposit refunded and either hope to god Telstra (*cringe*) will sell the iphone, or hope to god the price isn’t inflated too much to buy unlocked and outright direct from Apple…

    Telstra, you’re a ripoff, but cheers for the heads up.
    Misleading advertising is spot on.

  • Ben

    June 13, 2008 at 6:29 PM

    Jess, you aren’t doing a good job at covering yourself as a Telstra employee.

    Optus is only covering 2% of the population with the 900mHz spectrum.

  • Samuel

    June 13, 2008 at 11:03 PM

    while advertising is separate from the site for the most part, as well it should be – when you’ve got “Gizmodo iPhone coverage sponsored by Optus” it’s, well, not really kosher.

  • Jon

    June 14, 2008 at 12:24 AM

    yeah JARED you dont know what your talking about, NextG isn’t what Telstra call HSDPA, its the name of there 3G network that uses HSDPA. also HSDPA dosn’t use the 850MHZ spectrum exclusively, HSDPA is a 3G upgrade from UMTS.
    Furthermore Optus arn’t expanding their 2100MHZ spectrum, they are upgrading there existing towers to support 3G on the 900MHZ spectrum, in my opinion a bad move as no other network is using this spectrum for 3G except Vodafone AU. Here is there press release….

    http://www.optus.com.au/portal/site/aboutoptus/menuitem.813c6f701cee5a14f0419f108c8ac7a0/?vgnextoid=b31a88baa20c9110VgnVCMServer29867c0aRCRD&vgnextchannel=b54ce67d77677110VgnVCM10000029867c0aRCRD&vgnextfmt=default

    “The Australian landscape is perfectly suited to using the 900MHz spectrum band to deliver high speed mobile broadband.”

  • sean

    November 10, 2009 at 11:38 PM

    i been told that 900 mhz will hit brisbane of extra coverage and my suburb and i don’t get very good coverage inside the house and the n96 looks for a tower about 10 km away and my local tower isn’t 2 km away and im on a hill and the tower is on the blind side of the hill but i get a full signal if im out side out the back of on the footpath and on the coverage maps optus says you are in a duel band area because it comes up yellow if it brown its 900 mhz

  • sean

    January 11, 2010 at 11:47 AM

    Optus and vodafone should close the 900 mhz for 2.5 g and use 1.8 ghz for 2.5 g and use 900 mhz for umts for extra frequency’s in the major cities and areas that have 2100 mhz and have both band running side by side like for someone who uses a usb umts modem and phone and there are areas in brisbane and the gold coast where 2100 mhz is not suitable and thats where a duel band network should be used and not just for the bush with the 900 mhz umts 900 mhz should be 99% area where 2100 mhz can be as well now that would over power telstra

  • Sean

    March 1, 2010 at 6:24 PM

    I think telstra should a duel band nextg 850 mhz and 900 mhz umts and close down the gsm 900 mhz and leave the 1800 mhz gsm still running and all australian umts should get rid of gsm 900 mhz and keep the 1800 mhz for gsm and that should be australia wide and at least some of the 900 mhz band can be used for 4g when it comes out and it mite be the way it is going and will see when it goes online about the info

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