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VHA sets sights on fixed-line

Connectivity BusinessbyConnectivity Business
February 24, 2011
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Australian mobile operator Vodafone Hutchison Australia (VHA) may be interested in offering fixed-line services, according to The Australian.
VHA is discussing a trial of fixed-line broadband services with NBN Co, the PPP in charge of the country’s…

Australian mobile operator Vodafone Hutchison Australia (VHA) may be interested in offering fixed-line services, according to The Australian.

VHA is discussing a trial of fixed-line broadband services with NBN Co, the PPP in charge of the country’s National Broadband Network. If successful, commercial services could start early next year.

VHA chairman Nigel Dews was cited saying that early-stage trials would be a good way to test the waters with NBN Co.

The development comes as many mobile operators, especially in the slowing markets of Europe, consider adding fixed-line capability to their offering in order to cope with rising demand for data.

According to Telegeography, VHA signed added just 142,000 new subscribers in H2 2010, as compared to 539,000 in H1 2010, while incumbent Telstra’s mobile business added 900,000 new subs in H2.

The two rivals decided last year to scrap their radio access network JV by August 31, 2012.

In a statement, Telstra that it was no longer relevant to continue investing in the JV when the coverage, speeds and services provided by its Next Generation 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 in 2009.

Tags: TelstraVodafone
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