TelstraClear eyes mobile market

By PETER GRIFFIN

TelstraClear gave a taste yesterday of the cellphone services it hopes to offer by the end of next year when it starts the country's third mobile network.

Video-conferencing between cellphones and the streaming of high-quality video to PCs were presented as features that will compel mobile users to upgrade to 3G when it arrives.

But a 3G demonstration yesterday was far from seamless - the LG videophones connecting to an Ericsson mobile base station on top of TelstraClear's North Shore headquarters frequently dropped their connection.

TelstraClear has many details to work through before it can make 3G a reality and is keeping its cards close to its chest in the meantime.

The telco is expected to take advantage of provisions in the Telecommunications Act allowing it to bolt its equipment to the cell sites of rivals and have its customers roam on their mobile networks.

TelstraClear must construct a network covering just 10 per cent of the population to be able to piggyback on competitors' networks, but has to present a "sustainable business case" to the Telecommunications Commissioner.

Such provisions have never been exercised before and piggybacking is unlikely to be treated warmly by Vodafone, TelstraClear's logical roaming partner.

Bill Bain, TelstraClear's group product manager for mobile, said all sorts of engineering, ownership and marketing options were being considered as part of the tender process.

He believed there was room for another cellphone operator to compete on price.

"You may look at mobile pricing now and think it's okay, but it's very high.

"We think there's room for lower pricing."

TelstraClear wants to have its network vendor in place by the end of this year, giving it a year to prepare for the launch of the network.

Exactly what it will offer customers depends on which network provider it chooses, as the vendor will supply some applications. Ericsson, Nokia, Siemens and Nortel are vying for the business.

Bain said TelstraClear, which runs a direct-sales operation, could go into retailing to sell 3G cellphones and services.