Telstra Saturn and Vodafone become allies

By RICHARD BRADDELL

Vodafone and Telstra Saturn will work together to develop integrated mobile and fixed wire value-added services for use over their networks.

The deal, which will result in common numbers for voice and wire and single voice mailboxes, does not prevent either party from creating separate third-generation networks.

Telstra Saturn chief executive Jack Matthews said the arrangement would accelerate the introduction of many of the benefits associated with third-generation mobile, since both companies had state-of-the-art networks.

While Mr Matthews praised Vodafone's network, that company's chief executive John Rohan said the fixed broadband network under construction by Telstra Saturn was not something Vodafone wanted to duplicate.

He expected the new arrangement would have no impact on Vodafone's reselling agreement with Clear Communications.

Yesterday's deal is being implemented through a joint-venture company that will develop integrated solutions, and each side will continue to bear all the costs of their respective networks.

The primary relationship with an "integrated" mobile customer will remain with the network that signed that customer on.

The possible advantages of the new system could include Telstra Saturn customers being able to charge up Vodafone pre-paid phones with payments that would appear on their monthly phone bills.

The arrangement will give Telstra Saturn access to Vodafone's new packet switched GPRS packet radio network.

This will enable always-on data connections.

At a recent presentation, Vodafone executives said speeds would run up to an initial 24 kb/ps.

Telstra Saturn is in the final stages of extending its Wellington cable-telephony network into the Christchurch area.

It has also started building backbone rings in Auckland in advance of network construction work that is expected to start next year.

Said Mr Matthews: "From our side, it is a recognition that it is often better to work together than to duplicate other people's skills."