Telstra and the CDMA Network

Telstra, Australia's largest Telco, announced last week that it plans to shut down the CDMA network and replace it with a 3G network.

At first I thought "brilliant" as this would mean that the country/rural people would finally be placed on an even footing as those of the metropolitan areas. Yet after some thought, I started having doubts as to Telstra's motives regarding the CDMA shut down.

Some questions I would like Telstra to answer regarding the CDMA shutdown are as follows:

1. The current CDMA network is owned by Telstra but Optus also shares access to it for its own CDMA customers. With Telstra's plan to shut down the CDMA network, are they going to allow Optus' ex-CDMA customers to also use Telstra's 3G network?

2. If the answer to question 1 is a resounding "no", will Telstra leave the CDMA network operating until Optus rolls out its own 3G network, thus allowing the country people a smooth transition to 3G with no loss of service?

3. If the answer to question 2 is also a resounding "no", will Telstra then compensate not only Optus for loss of customers, but also those customers that have signed contracts with Optus but may end up losing the mobile service prior to their contracts expiring?

4. As Telstra has bought a 50% stake into Hutchinson's 3G network, will the replacement to the CDMA network be an expansion of this joint venture with Hutchinson, or are they planning to roll out a 100% Telstra owned 3G network?

5. How will the ACCC see this move to Telstra? Will they view it as simply a move to bring the country areas onto an even "mobile" footing with their metropolitan counterparts, or will they see it as an attempt to monopolise the country areas?

These and more questions need to be answered by Telstra regarding their CDMA shutdown before any move is approved either by the Federal Government or the ACCC.

Personally, if Telstra is going to shut down the CDMA network and replace it with a 3G network, I would rather see the government step in and have all four 3G networks co-own the new network, thus allowing former CDMA customers the opportunity to have choice in which carrier they would like. But then, that is a logical and reasonable option. Something that Telstra doesn't always take into account or consideration.

James