| iPhone: Australian carrier speculations |
| Written by Kelsey | |
| Wednesday, 10 January 2007 | |
 So the big news of this week is the iPhone. Virtually everyone I know, geek or otherwise, is talking about this thing.And let's face it - what's not to talk about. In most of the western world, this kind of device is revolutionary in terms of technology convergance, design and elgance. Japan, perhaps unsurprisingly, is less than impressed. Despite the hype, my own desire was little muted by the acknowledgement that we won't be seeing the iPhone in Australia for at least a year. To my thinking, this is probably a good thing. Much as I like their products, the old agade "Never buy version one of anything" holds true as much for Apple as any other technology company. Every true geek has learned this law at great personal frustration - if not expense. First-generation fear isn't the only factor working in Australian's favour, however. The current iPhone is only quad-band compatible, meaning no 3G. While this is probably due somewhat to the extra strain 3G use places on batteries, it's more likely that the generally patchy 3G coverage of Cingular (now AT&T, the only phone company currently slated to sell iPhones in the US) was the major contributing factor. The rest of the world, however, likes 3G - or at least the idea of it. I don't know anyone who regularly makes video calls. I've tried, but never been able to acheive a connection on my Sony Ericsson V800i, supplied by Vodafone. But with Hutchinson's '3' network dominating the airwaves, no self-respecting telecommunciations firm can afford not to claim 3G network capability. I think we can assume that in some form or another, there will be a 3G iPhone. So the real question: Who will partner with Apple in Australia? The choice of Cingular in the US is telling. A big carrier, not regarded as a particularly revolutionary company, the US-based firm was willing to overhaul the way their network operates to accomodate Apple, the first example of their collaboration being visual voicemail. No doubt more will be revealed closer to the release of the product. Another clue lies in understandng the importance of Cingular's EDGE network to Apple's plans. While far from being the fastest wireless data network in the US, it's certainly the widest, with the largest coverage of any telecommunications offering. So while you may not be able to get online faster than everyone else, you'll be able to get online in more locations. Let's face it - there's not going to be an Apple proprietary BitTorrent widget (please don't make me eat my words on that!), so mass-downloads aren't the order of the day. Ubiquitous access to web, email, maps and chat is vital - and for this, most users would forsake a little speed for a lot of coverage. All of which combined gives us an idea of who Apple might choose to partner with in Australia. Let's run down the list: "3": Unlikely Three has worked hard for their own market differentiation. They've got a strong and highly recognisable brand and spearheaded the loss-leading 3G push in Australia. Their own brand image and target market is so similar to Apple that any collaboration between the two would probably dilute that brand. Their data plans are on the expensive side (not that Apple has ever had a problem with that!) and their coverage isn't great. Optus: Unlikely A stodgy Singaporean carrier, Optus were one of the first independent operators in the Australian telecommunications scene. They have a huge network in Australia but don't have a great track-record with the iPhone's target demographic. Their plans are expensive and underpowered and they're seriously, desperately uncool as a company with some of the most annoying and witless ads on TV. I can't see Optus changing anything about their business for anyone - but a partnership with Apple for the iPhone could revive their image in Australia, so I won't rule it out entirely. Virgin Mobile: Unlikely Virgin just don't have the marketshare - Although that could change, were they to become exclusive carriers of the iPhone. They've got the network infrastructure to handle it, as they're now 100% owned by Optus, but with a mandate to go after precisely the kind of customers Optus are too boring to attract. Whether they could provide the data coverage or be willing to change their systems is another matter. Vodafone: Strong contendor Vodafone have had a great rep in Australia for a while. They're seen as progressive and cool - although this facade is slowly crumbling under the weight of poor aftermarket customer service. They've got good phones, good coverage, good plans, good caps and (word is) are soon to introduce some significant upgrades to their data plans. I personally think that Vodafone are likely to go after an Apple partnership in Australia and would be willing to change their systems to accomodate the iPhone. Telstra: Probable - unfortunately In the end, I think Telstra is the logical choice. Their coverage is huge and they have significant marketshare in all sectors - mobile, broadband and wireless. The "new" Telstra is an aggressive beast, willing to hunt down marketshare, dragging old clients kicking and screaming (or at least cluctching rebate cheques for significant wads of the folding stuff) back to their clutches. I'd be willing to put money that Telstra are not only willing to change their services to accomodate the iPhone, but have already approached Apple offering to do so. They also have their newly announced NEXT G network, similar to 3G but, you know, nextier. Obviously. While touted more as a mobile service like 3G, Telstra are also pushing NEXT G as a solution for mobile data coverage for both phones and laptops. Conclusions: I think Telstra will get it, which is somewhat unfortunate. Telstra is just a wee bit evil, still not entirely divorced from the days when they were Telecom, the national carrier with a fearsome bureaucracy designed to crush the will of all who contended with her. Telstra own most of the physical cabling that comprises the Australian telecommunications infrastructure and they don't even try not to act like it. Their plans are expensive when compared to most other providors, even their deals for packaging landlines, mobile and data services are more costly than other's stand-alone offerings. However they do have the two things that Apple seem to care about most - coverage and marketshare and in the end, I believe that's what will seal the deal. |
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