news National broadband provider Dodo today revealed Telstra had spoken to it about selling services over its flagship Next G mobile network, in the latest sign that the nation’s largest telco is thinking about opening up its prize asset for competitive use.

Telstra’s Next G network was constructed starting from 2005, under then-chief executive Sol Trujillo, replacing several other previous Telstra networks, including its rural CDMA coverage. According to regular tests, it boasts the fastest speeds of any Australian mobile network, as well as the broadest coverage.

Up until recently (and unlike Optus), Telstra is not known to have expressed any interest in providing wholesale access to its mobile network, as both Trujillo and current CEO David Thodey have seen the network as providing Telstra with a competitive advantage over rivals in the largely unregulated mobile telecommunications market. However, iTNews recently reported that Telstra had started discussions with other carriers to allow wholesale access to the network.

In an interview this morning, Dodo chief executive Larry Kestelman (pictured) said his company was one provider on Telstra’s list. “They have spoken to us,” he said.

The executive noted that it was his understanding that Telstra was thinking of opening the network in the first quarter of 2012, although no firm dates had yet been laid down. He stressed that Dodo currently had an exclusive partnership to sell mobile services over the network of SingTel subsidiary Optus, and was “quite loyal” to the company, but that wasn’t to say that it wouldn’t be open to discussions with Telstra at some point.

The news comes as it remains unclear just what Telstra’s strategy might be with respect to providing access to Next G.

Major ISPs such as iiNet and Internode have expressed an interest in selling services over Next G. However, there is no indication that Telstra has approached either with respect to a possible reseller arrangement as yet, despite Internode managing director Simon Hackett noting last week that his company had repeatedly asked Telstra about wholesale access to Next G.

Sources cited by iTNews have speculated Telstra might be looking to provide wholesale access to its existing HSPA network, but not the growing portion of its network which can access higher speeds and more capacity using the Long-Term Evolution standard which it is currently implementing.

For its own part, Telstra has only stated that it would consider wholesaling Next G if it was “commercially viable” to do so.

Any move to open up the network would be likely to have a dramatic effect on Australia’s mobile market. Currently, most third-parties who resell access to a local mobile network do so on top of Optus’ infrastructure, which it has re-badged ‘The Open Network’. Vodafone is currently refreshing its mobile infrastructure after a series of coverage and speed problems and outages late last year and early this year.

opinion/analysis
Well, the cat is definitely out of the bag. Telstra is looking to wholesale Next G … but perhaps not to everyone. iiNet and Internode haven’t precisely been bosom buddies with Telstra over the years, and with the mobile space being largely unregulated and competitive wholesalers like Optus around, there is no obligation for Telstra to open the Next G kimono to every gentleman caller which comes its way — perhaps just a small cadre of cut-rate players which don’t really compete with its own value-added premium offering.

It will be fascinating to see how this situation plays out over the next year. And stay tuned for our wider interview with Kestelman in the days ahead.

Image credit: Dodo

Related posts:

1. Will Telstra wholesale its Next G network?
2. Telstra signs up first Next G wholesaler
3. Dodo will win the NBN land-grab, claims Budde
4. Internode wants to resell Telstra HFC, Next G
5. Coalition attacks “discount” NBN ISPs Exetel, Dodo

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1. Warren Butler
   Posted 29/08/2011 at 4:43 am | Permalink | Reply

   Seriously…I would not want my picture with a rack with cabling that untidy.

   • Michael Wyres
     Posted 29/08/2011 at 4:48 am | Permalink | Reply

     Depends how you look at it.

     It could be the neatest one they have… :o)

   • Renai LeMay
     Posted 29/08/2011 at 4:50 am | Permalink | Reply

     It’s not *that* messy, and it’s more or less in the Dodo corporate colours ;)

     • Fred7826
       Posted 29/08/2011 at 11:35 pm | Permalink | Reply

       Call it a birds nest if you like. ;)

2. Michael Wyres
   Posted 29/08/2011 at 4:47 am | Permalink | Reply

   Telstra feathering their nest for a post-NBN world? Lest they become extinct?

   *subtle joke*

   • Renai LeMay
     Posted 29/08/2011 at 4:50 am | Permalink | Reply

     lol

3. Nathan
   Posted 29/08/2011 at 12:24 pm | Permalink | Reply

   Sounds like a match made in heaven, combining pathetic support with pathetic service. I couldnt think of two companies more suitable for each other. Honestly, of all the ways to continue to destroy the Telstra brand and further contribute to record low customer satisfaction, teaming up with Dodo has got to rate near the top.

   • Renai LeMay
     Posted 29/08/2011 at 12:32 pm | Permalink | Reply

     Actually I’ve been hearing pretty good things about Dodo recently … and Telstra’s Next G network is pretty good. I think this could actually be a pretty good match.

     • Michael Wyres
       Posted 30/08/2011 at 3:19 am | Permalink | Reply

       I’ve been with Dodo at home since 2003…the reliability/performance of their network has been nothing to complain about the whole time.

       Initially mine was a resold Comindico connection, then a Telstra one, and then their own network as they continued to build out.

       There have been customer service issues when things have (occasionally) gone pear shaped, but that’s happened so few times in the eight years, it’s difficult to say “they have bad customer service” from my own experience.

       Others have made their feelings known on Whirlpool over the years, and I’m sure some would have genuine grievances.

       However, in my experience in the ISP world, people complain of “massive problems” and “major inconvenience” just to get their problem looked at first, and failing that, “abuse” the escalation process to get it done even sooner.

       There is certainly suggestion that their customer service record has steadily improved over the last couple of years.

     • Michael Wyres
       Posted 30/08/2011 at 3:19 am | Permalink | Reply

       I’ve been with Dodo at home since 2003…the reliability/performance of their network has been nothing to complain about the whole time.

       Initially mine was a resold Comindico connection, then a Telstra one, and then their own network as they continued to build out.

       There have been customer service issues when things have (occasionally) gone pear shaped, but that’s happened so few times in the eight years, it’s difficult to say “they have bad customer service” from my own experience.

       Others have made their feelings known on Whirlpool over the years, and I’m sure some would have genuine grievances.

       However, in my experience in the ISP world, people complain of “massive problems” and “major inconvenience” just to get their problem looked at first, and failing that, “abuse” the escalation process to get it done even sooner.

       There is certainly suggestion that their customer service record has steadily improved over the last couple of years.

4. J Mckenzie
   Posted 29/08/2011 at 4:07 pm | Permalink | Reply

   would hate to see the dodo 850mhz plans…i would assume telstra wouldn’t be charging very little for it (charges always get passed onto the consumers…)

   it would be good but I do think that this is only a small bit of info theyre feeding us (meaning i would assume telstras LTE network will make the NextG network look pathetic…)

5. PeterA
   Posted 29/08/2011 at 11:33 pm | Permalink | Reply

   I am not so surprised at this news.

   Those “first quarter 2012″ dates sound familiar, but not from a 3G perspective from a 4G perspective.

   I expect Telstra will keep their new 4G to themselves, and wholesale their 3G network. Telstra will still be the premium mobile ISP for wireless, once people see 4G, Telstra 3G is going to struggle for customers. (at least from a mobile data point of view).

6. Sydney
   Posted 29/08/2011 at 11:43 pm | Permalink | Reply

   You cant blame Telstra for not offering it to internode or iinet

   those 2 companies like biting the hand which feds them.

   • Fred7826
     Posted 29/08/2011 at 11:47 pm | Permalink | Reply

     The whole of Australia has been feeding Telstra and Telstra is generally the one who bites.

7. Michael Wyres
   Posted 29/08/2011 at 11:54 pm | Permalink | Reply

   I had no idea that David Hicks ran Dodo!

   • Renai LeMay
     Posted 30/08/2011 at 12:16 am | Permalink | Reply

     lol they do look somewhat alike!

8. AJ
   Posted 30/08/2011 at 2:46 am | Permalink | Reply

   Telstra do not need more poeple on their network it is terrible now : (

9. AJ
   Posted 30/08/2011 at 2:46 am | Permalink | Reply

   Telstra do not need more poeple on their network it is terrible now : (

   • Renai LeMay
     Posted 30/08/2011 at 2:53 am | Permalink | Reply

     You have evidence for this claim? I have found Next G to be excellent, myself.

     • AJ
       Posted 30/08/2011 at 9:54 pm | Permalink | Reply

       Yes well I would if speed test would even load on my connection last night.

       Next G is excellent between 1AM and about 6AM though!

   • Anonymous
     Posted 30/08/2011 at 3:17 am | Permalink | Reply

     Unfortunately the experience with mobile networks, and to a lesser extent, networks in general, is highly subjective.

     My experience with NextG has been awesome, both in performance and coverage, but it is understandable that others may have a less that satisfactory experience.

     • Michael Wyres
       Posted 30/08/2011 at 3:34 am | Permalink | Reply

       The same can be said of any non-fixed line service. More users per cell equals less performance per user.

       Vodafone – (the whipping boy) – has been generally fine for me – (except when on the train, where the movement of the vehicle, and metal film tinting on the windows makes a solid connection difficult) – but that may just be a function of the locations I frequent being lower traffic cells.

       Even Telstra will be slow in high traffic cells. It just depends where you are, and how many people are on the cell at the time.

       It would be interesting to see if cell areas with a lot of coffee shops – (where people will be leaching their wi-fi) – have generally better performance than those cells without many coffee shops, where people will rely on their 3G.

10. Vitman
    Posted 30/08/2011 at 11:54 pm | Permalink | Reply

    One thing I noticed that DODO is running a much tighter and more efficient ship than TPG so far.
    TPG is falling apart and taking their customers with them by the looks of it.

11. PrepaidPlans
    Posted 04/09/2011 at 11:21 am | Permalink | Reply

    Dodo have put some serious effort into their mobile plans of late. Caps are with Optus and Prepaid is with Vodafone (hasn’t changed in years). Whilst i have no evidence of bad service (other than what is posted on forums) the issue I see is that ‘free everything’ in their advertising. It is hard to believe what is and isn’t true and where the catch is.

12. Otacon
    Posted 19/09/2011 at 10:03 pm | Permalink | Reply

    When I finished reading the article I thought it meant Telstra were going to open up their network before switching on their 4G service. But if one of the comments is right, in that it will be open after their new service is on than I don’t care. I am a Telstra mobile customer and I definitely do not want the influx of customers that will result from this because it will result in the speeds decreasing. I can’t wait for 4G, I hope iPhone 5 is LTE compatible.