Australian incumbent Telstra and cellco Vodafone Hutchison Australia (VHA) have decided to scrap their radio access network JV by August 31 2012.
Telstra explained, in a statement, that it was no longer relevant to continue investing in the JV when the…
Australian incumbent Telstra and cellco Vodafone Hutchison Australia (VHA) have decided to scrap their radio access network JV by August 31 2012.
Telstra explained, in a statement, that it was no longer relevant to continue investing in the JV when the coverage, speeds and services provided by its Next G network, which operates on the 850MHz spectrum, are better. The company expects its earnings to improve once the JV is terminated.
The JV, which uses the 2100MHz mobile phone spectrum, was created in 2004 when Hutchison 3G Australia entered the Australian market. VHA was then formed through a merger between Vodafone Australia and Hutchison’s 3 last year.
Telstra chief marketing officer Kate McKenzie said that most customers would not be impacted by that decision. “The exit of the joint venture will go unnoticed by most of the customers still using the earlier network because their handsets will automatically roam to the GSM network for voice calls and SMS,” she said in the statement.
The termination of the JV may even be brought forward if certain conditions are met, the statement read.
