telstra strategy open to question, page-3

I have read the article and do not think there is much to worry about. The main thrust is that with the advent of 4G, the Telstra may not be successful, offering the 3G broadband wholesale to resellers such as Dodo and others.

The article quotes managing director of iiNet as saying " Why would anyone want to purchase wholesale access to a 3G service when the superior wholesale 4G services are just around the corner."

Well I can think of at least 2 or 3 reasons.

1)Depending on the location, 3G signal maybe available where 4G may not due to different propagation characteristics of the frequencies used. It has been reported that 3G signal has superior penetration in build up areas and inside buildings etc.

2) The article states: "Download speeds on 4G can range from 2Mbps to 40Mbps, whereas speeds on 3G network typically hit between 1.1Mbps to 20Mbps."
The speed depends on signal strength and number of participants communicating with the local hub( antenna tower). There maybe many instances, depending on locality where 3G is just as fast or even faster then 4G.

3) Price of equipment and data. While some people will buy the new 4G modems and mobile phones, other may prefer to wait for 4G to bed down and prices to fall and stabilize. Some people are locked in contracts. Others may have purchase the top of the line 3G equipment recently (iPhone 4S), they will want to get some value from their purchases before replacing them. Some savvy users might buy second-hand 3G phones or modems cheaply as the trend-setters upgrade and use them as cheaper alternative.

4G is evolution, not revolution. There will be plenty happy customers on 3G as well as on 4G, for years to come.