The closure of the CDMA network on April 28 will potentially leave Telstra with a regional monopoly on mobile phone services according to Queensland Nationals Senator Ron Boswell.
“Many Telco providers, including Optus and Pivotel Globstar who piggybacked on the CDMA network, will be immediately shut out of the market, leaving only Telstra with the infrastructure to service these customers,” Senator Boswell said.
“Pivotel’s Globalstar network has provided over 13,000 customers in remote areas with a dual mode CDMA network and a satellite system that roams between the two networks. The closure of the CDMA network will mean that customers either have to purchase a Telstra mobile, and carry two phones, or pay excessive prices for satellite only service.”
“Globalstar was the Federal Government’s answer to providing the very remote areas of Australia with a mobile phone service.”
“Globalstar’s service allows the very remotest councils, aboriginal communities and even the Royal Flying Doctor Service with the security of a reliable dual mode mobile phone service.”
“The former Federal Coalition Government provided subsidies to make these handsets available to the very far flung parts of Australia such as Quilpie, Boulia, Windorah and Birdsville. These 13,000 handsets will be redundant as a result of the network closure.”
“The Minister’s actions are merely limiting competition in rural, regional and remote Australia to the extent that you will only be able to access mobile phone services through Telstra if you venture west of the divide.”
“Telstra is not allowing other Telco providers, such as Pivotel, Optus or Vodaphone, to co-locate their equipment on Federal Government funded mobile phone towers, meaning it will take years before competition can be re-established in the regional mobile phone market.”
“Anecdotal evidence from my constituents would suggest that the Next G network is about 20% worse than CDMA, so I can’t understand how Senator Conroy can is saying that customers will receive ‘equal or better’ service.”
“Dr Bill Glasson, who is heading a government review of regional telecommunications, has already branded the Next G a "disgrace" and despite this, the Minister is fixated on shutting down the CDMA network”.
“Deregulation of Telecommunications in Australia was meant to set up the conditions for competition to flourish, but this sudden closure of the CDMA system will have the opposite effect.”
“I call on the Minister to extend the life of the CDMA network until he can guarantee that the remote communities of Australia will be serviced at an ‘equal or better’ standard”.
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