telstra strategy open to question, page-7

This is compeltely nuts. The journalist completely blew the article and pandered to completely asinine comments from iiNet. Trying to introduce some reality here.....

1. Subscriptions require handsets and networks, a 4G rollout will not be Australiawide from inception and you wholesale services on a subscriber by subscriber basis. This means even if 4G is available most people will have 3G devices- so a need for 3G will remain "well around the corner".

2. If iiNet thought 3G wholesale was such a bad idea he would terminate iiNet's Optus 3G wholesale offer. Not going to happen! BTW Mike who else wholesales consumer 4G right now? I'll list them for you here: You would also note I added in your 4G Apple iPhone plans there too... But I do note you are selling 3G iPhones with "LTE around the corner".

3. Anyone with an existing 3G handset and who just wants to change provider needs to go with someone who offers 3G. No 3G = harder to churn fixed internet and no bundling opportunities.

4. The IT systems and contracts required to wholesale 3G and 4G services are identical. i.e. If Telstra offers wholesale 3G now it can do 4G later using the same IT systems and business relationships. There is no downside to launch wholesale 3G now, sort out the bugs and then launch 4G.

4. Only around 50% of Australian mobiles are smartphones. leaving...err...lets do the math, around 50% of the market needing 3G and 2G network support over the medium term. (4G networks will not be used for non-smartphones initially). So no 3G wholesale and your market is halved!

5. "4G is around the corner" which does not mean now. Telstra can adapt its pricing and add 4G to wholesale offer "right around the corner"....

In any case Malone is a fool: Telstra can now take his quote straight to Rod Simms the first time anyone raises competition objections and predatory pricing.