Wednesday, July 10, 2013

Should Australia have another telco?

So after hearing Vodafone has flicked the switch on it's 4G services for not only existing customers with 4G enabled phones, but now for new customers, it got me thinking, does Australia need a new telco that has its own infrastructure (as in mobile reception towers etc) to come in and challenge and bring more competition away from the big three telco's?

I would say somewhat yes.

Why? simply put, the big 3 telco's have way to much power to cause a monopoly, but also because the networks do open certain parts of their network as a wholesaler to what is known as VMNO or Virtual Mobile Network Operator, which don't known the actual infrastructure but instead lease or piggy back off one of the three major telcos.

For example:

Boost Mobile uses the Telstra Next G Network whilst Aldi, Kogan and Telechoice use the lower 3G bands of Telstra bandwidth infrastructure.

Virgin Mobile (who is a wholly owned subsidiary of Optus) uses the whole Optus 2G, 3g/3G+ and 4G bandwidths along with iiNet whilst Dodo, Amaysim, Woolworths Mobile, TPG, iPrimus, M8, Yatango ,  use the Optus 3G bandwidth network.

On Vodafone, well there's is a little more complex as they did have a partnership with Telstra for the 3GIS network which has since been dissolved and split between both parties, but Vodafone now has an agreement to piggyback off Optus for 3G+ services. Red Bull Mobile and Think Mobile do utelise the Vodafone network (believed to be the 850mghz but unconfirmed)

So even though we have all these various and upcoming VMNO's the issue still remains that there is really only three main competitors that control the networks and really and ultimately calling the shots to not only customers but also to the VMNO's.

Having being burnt with Dodo because of Optus' reception issues within greater western Sydney area and also within the city, this proves to me that we are being short changed and customers as well as VMNO's would be far better off with another Telco causing a shake up to a very dull if not cut throat industry.

So yes I think Australia would be better with another telco network, if not to shake up things and bring more competition to us consumers who ultimately pay currently pay for mixed services but to stop the monopoly the 3 major telcos currently enjoy.

I mean why can't a mobile provider like T Mobile, Sprint, AT&T or other mobile network providers actually come down under and rock things up a bit, but alas I don't think that could or would actually happen.

But it certainly is something to ponder. So what are your thoughts? Should Australia allow another telco provider in that owns its own infrastructure to operate and shake things up from the current big 3 telco's??

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