Fran Foo | August 19, 2008
HUTCHISON'S 3 Mobile claims it will almost double its 3G coverage of the local population by July next year, thanks to a new deal with Telstra.
3 said it will expand its network coverage footprint in high roaming and 3G roaming hot spots on Telstra's 850MHz network by building 50 new sites, slated for completion by the end of the year.
This would increase its 3G coverage from 56 per cent of the local population to 96 per cent, 3 claims.
It hopes to have sealed new roaming agreements with Telstra by the June 2009. Both have had similar arrangements since 2004.
"Roaming arrangements for 3G (roaming) on parts of Telstra’s 850MHz network will be in place during the second quarter of next year," 3 said in a statement.
The value of the Telstra agreement and new 3G investment was not disclosed.
"Plans to extend our 3G network means our customers will be able to access their 3G services in far more places, and with the appetite for services like the internet on the mobile growing rapidly, it makes good sense," Hutchison chief executive Nigel Dews said.
"These initiatives will also reduce our roaming costs. Both new sites being added and lower wholesale roaming costs will have a significant impact," Mr Dews said in a statement.
Mr Dews will be briefing the media and analysts on the company's 2008 half year results this afternoon.
Meanwhile, Ovum's telecommunications analyst Nathan Burley believes the move is a major boost for 3 which was in danger of being left behind.
"Telstra’s game changing Next G network has taken 3G competition to a new level, forcing competitors to respond. Optus and Vodafone both plan nationwide 3G networks - Vodafone will reach 96 per cent by end 2008, Optus will reach 98 per cent by end 2009.
"Although 3 offers national coverage via Telstra’s 2G network, its 3G coverage remains at only 56 per cent. In a game where coverage is king, 3 had potential to be squeezed.
"These announcements will ensure it remains competitive," Mr Burley said.