Telstra Briefing on CDMA/GSM changes

Hi everyone,

Because there seems to be a lot of confusion and speculation about
Telstra's Plans for the CDMA and GSM networks, i've posted the Telstra
dealer briefing that has been issued to stores.

This should sort most misconceptions about the change.

Richo




What is 3G city-to-country?

Telstra's 3G city-to-country is a plan to deliver high-speed 3G
services to mobile customers across its national network. It will
deliver faster speeds, wider coverage, and better mobile services for
both city and country customers.
The national 3G service will provide Telstra's customers with existing
and enhanced services including voice and video calling, mobile
internet services and wireless broadband.
The new network will use the same (850 MHz) frequency and booster
technology approach used by Telstra's existing CDMA network, thereby
providing the same broad coverage in rural areas, without the need for
extra base stations.

The national 3G service will match the existing CDMA coverage and
continue to reach 98 per cent of people.

How will this benefit our customers?
• it means faster speeds, bigger coverage and better and more mobile
services;
• it means innovative, new services delivered on the best and largest
network in the country; and
• Telstra will be the first telco to deliver 3G across Australia.
• A long term plan - CDMA services will remain in place until the
national 3G service is providing the same or better coverage and
services.
• Attractive deals will make it easy and appealing for customers to
obtain new handsets and make full use of all the 3G services on offer.

• 3G combines today's mobile services with video services and the
ability to send information much more quickly over your phone or from a
laptop without cords.
• The main difference between 3G and earlier networks is how quickly
information or data can be sent and received on mobile devices and the
ability to use video calling, messaging and streaming.
• Put simply the 3G user experience is like the difference between dial
up and broadband.
• Better coverage:
o Telstra's 3G city-to-country plan will deliver customers even better
coverage than they get today when using the next generation of mobile
phones:
o when city-based customers travel in regional areas, they will get
significantly improved mobile phone coverage compared to their GSM
service today
o country customers will experience the latest 3G services including
video calling and fast mobile internet services
o country business customers will be on an even footing with their
city-based competitors with access to the same latest, fastest services

o 80% of the world uses GSM based technology and it provides worldwide
roaming to all 2G and 3G Telstra customers when travelling overseas
o some people who today cannot access ADSL services may now be able to
enjoy wireless broadband access
o all customers will benefit from improved coverage on a number of
Australian highways
o all customers will benefit from superior in-building coverage.
Telstra and BigPond Wireless Broadband
• The existing Telstra and BigPond Wireless Broadband services will
remain in place until the national 3G service has the same or better
coverage and services.
• In the meantime, wireless broadband coverage on the CDMA-based EV-DO
network will be expanded as part of our commitment to accelerate the
growth of our leading wireless broadband service.
• When the national 3G service is available, Telstra and BigPond
Wireless Broadband customers will receive free upgrades and replacement
data cards and modems.
• The national 3G service will begin upgrading for wireless broadband
customers to access an even better network, providing broadband speeds
to most of the population.
• Telstra's CDMA-based network today provides superior internet
coverage compared to other competitors' networks. When the new network
is commissioned we will provide even higher speeds to more people, and
there will be improved coverage in buildings.
Questions & Answers:

Q) What will happen with CDMA?

A) The existing CDMA network and the Telstra and BigPond Wireless
Broadband services will remain in place until the national 3G service
has the same or better coverage and services.
Wireless broadband coverage on the CDMA-based EV-DO network will
continue to be expanded as part of Telstra's commitment to accelerate
the growth of our leading wireless broadband service until such time as
the national 3G service is available.

At this time, Telstra and BigPond Wireless Broadband customers will
receive free upgrades and replacement data cards and modems.

Customers will be given plenty of notice to upgrade their handsets in
the same way they do today but with the added benefit of attractive
handset deals to ensure they can make full use of the new services.

Q) Does this mean we stop selling CDMA?

A) No. The existing CDMA network and the Telstra and BigPond Wireless
Broadband services will remain in place until the national 3G service
has the same or better coverage and services.

Both CDMA and the new network will work concurrently for some time to
assist transition to the new service.

Customers will be given plenty of notice to upgrade their handsets in
the same way they do today but with the added benefit of attractive
handset deals to ensure they can make full use of the new services.

Q) Why couldn't you continue to develop the three networks you have as
they seem to meet the needs of different market segments in terms of
coverage and service offerings?

A) This plan allows us to provide better coverage, faster data speeds
and more services. It doesn't make sense to continue to maintain
multiple network technologies all vying for the same investment
dollars.

Our vision will allow us to take a much more focussed approach to
investment which means maximising the benefits of any new technologies
by making them available to more of our retail customers. This also
lays the foundation for the provision of 4G services in the future.

Q) What are the timeframes you are talking about?

A) This is a three-year vision. Our plans would see work start early
next year with the benefits of the new services starting to become
available to customers in the second half of next year. However, we
will be carrying out additional work and further upgrades to the
network through to mid 2007. We will be working with customers over the
next three years in relation to the gradual take up of new services as
they become available. We will leave the CDMA network in place until
the new network is providing the same or better coverage and services.

Q) Why did you select this technology?

A) We wanted to offer new services and better technology to more of our
customers across Australia:
• Better coverage because we are combining the reach of our existing
networks and extending coverage on highways;
• Deliver wireless broadband throughout a single network;
• Improved depth of coverage;
• Improved in-building coverage;
• A wider range of services such as video calling, music downloads and
video clips;
• Access to a single superior technology path, setting the foundation
for 4G.
Q) Why didn't you install GSM six years ago when the analogue network
was forced to close?

A) Based on the technology available at the time, CDMA provided the
best means of addressing coverage issues in rural and regional areas.
However, recent development of 3G technology on the same frequency band
as CDMA allows us to provide like-for-like coverage, but with the
additional features available on 3G. The lower the frequency the
further the signal can travel.

Q) What will happen to CDMA base stations?

A) Both GSM and CDMA base stations will have 3G added. We will operate
3G and CDMA services simultaneously during a transition period that
will allow us to offer new services to our customers as they move to
upgrade to new devices and handsets.

Where there are both existing GSM services and CDMA services on the one
tower, we will also need to add 3G services.

Q) The data speeds that are currently available over EVDO are better
than 3G. Wouldn't it be better in terms of wireless broadband coverage
to continue to upgrade EVDO, and its further evolutions?

A) Technologies are developing all the time, and there is a service
that has been developed on the 3G platform that provides wireless
broadband services (HSDPA - High Speed Downlink Packet Access) at
higher speeds than EVDO. The next evolution of HSDPA service is
expected to provide peak broadband speeds up to 14Mbps. We believe this
is the superior technology path, but we will continue to support and
expand EVDO until the new service is available.

Q) I have just brought a new Telstra Mobile Broadband service. Does
this mean in 12 or 18months I will no longer have a service?

A) Telstra is committed to pursuing growth in wireless broadband
services. To demonstrate this commitment we will be expanding existing
wireless broadband services until the new network becomes available.
Once the new network is operating we will be upgrading these customers'
services and providing free replacement pc cards and modems.

Q) When CDMA was released there were limited numbers of handsets, and
they were more expensive than GSM. Won't this happen again if we move
to another new technology?
A) Cingular, the largest mobile operator in the US, with over 51
million customers, has been pioneering the development of 3GSM 850.
There is also emerging interest from other companies around the world.

The handset range will increase progressively to cover a range of
prices depending on features and functions. Also we will offer
services on appropriate plans from basic mobile telephony and SMS to
rich content and down-loadable services such as music and video clips,
video calling and content services.

Q) I have spent quite a bit of money, not only on phones but car kits
and antennas. Why should I pay for a new set?

A) As with most technologies an upgrade in equipment is required to
take advance of new and better services.

The average period of time before a customer upgrades a phone is about
two years, and we will be offering attractive plans to encourage take
up of the new service so customers can make full use of all the new
services on offer.

Q) CDMA coverage has been improved with the development and use of
specialist antennas and other approved equipment for cars and houses.
Will there be the same equipment for GSM?

A) This equipment is being sourced. In addition, as 3GSM operates on
the same frequency band as CDMA, equipment may be reusable.
Title: 3G 'City-to-Country' Plan
Date: 22 November 2005

Some customers may be confused, as a result of weekend media coverage,
about whether they will need to replace their current handsets when the
new network is launched.

Media has reported that:

"Telstra's 8.4 million mobile phone users will need to buy a new
handset when the company switches to its proposed new-generation
technology, beginning next year. As part of a major restructure
announced last week by Telstra boss Sol Trujillo, Telstra plans to
close its present three networks, GSM, or digital, CDMA and the newly
launched 3G, and replace them nationally with one system."

The facts are as follows:
• It is incorrect that all of Telstra's 8.4million mobile phone users
will need to buy a new handset when we switch to the new network.
• There are no plans to stop operating the current GSM network.
• Telstra will be maintaining the 2100Mhz service.
• Existing GSM customers can stay on this network and it will be
modernised with improved data speeds.
• However, existing GSM customers who want to take advantage of the
additional coverage and features of the new 3G network will need to get
a new 3G handset.
• Current 3G (2100Mhz band) Customers will continue to have access to
that service and expansion of the service in this band with their
current handset.
• However, if these customers want the full national benefits of the
new 3G coverage these customers will need an 850 handset, or multi-band
phones, that are expected to be available in the near future.
• CDMA customers will be encouraged to migrate to the new network
progressively from the completion of the network until approximately
the end of 2008.
• The network changes will take place over a few years, so CDMA
customers can upgrade their service in the same way they do today - but
we will also be offering attractive handset deals to support the take-up
of new and better services (e.g. video calling )
• We'd expect the majority to take up one of our special deals as on
average customers upgrade their handset about every two years.
• Details of the migration plan will be developed down the track once
all approvals to proceed are in place
• It's a long-term vision and the timeframe will allow a smooth
transition for customers to faster, more advanced mobile services.
• We will operate both the CDMA and new 3G services concurrently for a
period of time to ease the transition.
CDMA

The first phase will involve installing new 3G equipment to operate on
the same frequency band as CDMA (850MHz) to replicate CDMA coverage.
Both CDMA and 3G will operate concurrently for a period to aid the
transition. At the same time a new wireless broadband service will be
installed.

CDMA customers will be encouraged to migrate to the new network
progressively from the completion of the network until approximately
the end of 2008. This is an approximate date because Telstra has said
the existing CDMA network will remain in place until the services and
coverage on the 3G network are the same or better.

The full extent of coverage will be available when the rollout is
completed the base stations fully upgraded.

GSM

There are no plans to stop operating the current GSM network. In fact
it will also be modernised and receive an upgraded wireless service
called EDGE - improving the data speeds currently available via GPRS
from approx 25kbps to 100-130kbps under EDGE. (A number of GSM handsets
are already EDGE-capable)

Existing GSM customers who want to take advantage of the additional
coverage and features of the new 3G network will need to get a new 3G
handset.

Eventually, because of the better coverage and features of the 3G
850MHz network, we believe customers will migrate to this service over
time.


--
RichOK

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› See More: Telstra Briefing on CDMA/GSM changes

RichOK wrote:

> Q) I have spent quite a bit of money, not only on phones but car kits
> and antennas. Why should I pay for a new set?
>
> A) As with most technologies an upgrade in equipment is required to
> take advance of new and better services.

Pretty piss poor "response". Many people have purchased said equipment,
expecting it to last some years, given tha at the time, there was no
prospect of any future technology making it obsolete.

I for one have spend close to $1,000 last year upgrading the two cars'
carkits to take the current "generation" of phones. Prior to that, we
didn't have anything, other than the phones, having waited to see where
developments would take us.

As for this new service being "better", how? If it means that if I'm
broken down between Tintaldra and Tumut, will I now be able to get a
signal? I'm tipping that no, I won't.

In any case, what we have now suits us down to the ground. We don't
want, nor do we need, any sort of internet connectivity on our phones.
When we're away from home, it usually means that we're at work, or we're
on holidays, or whatever. So, the idea of internet or TV or whatever, is
really irrelevant.

If this "better" service means cheaper phones, cheaper car kits, etc.
with only tbe basics - telephony and SMS, then fine. As long as I don't
have to pay an arm and a leg for the "better" service, or go onto any
bull**** contracts, I'll be happy.

Thing is, if 3G is so ****hot, how come **** all people have signed up
with it to date? Is this one way of forcing customers to migrate to a
more expensive service by killing the existing, and adequate ones?

"Martin Taylor" <[email protected]> wrote in message
news:[email protected]...
> RichOK wrote:
>
> > Q) I have spent quite a bit of money, not only on phones but car kits
> > and antennas. Why should I pay for a new set?
> >
> > A) As with most technologies an upgrade in equipment is required to
> > take advance of new and better services.
>
> Pretty piss poor "response". Many people have purchased said equipment,
> expecting it to last some years, given tha at the time, there was no
> prospect of any future technology making it obsolete.

Common sense, dickhead.

Of course your 5-year old Qualcomm QCP-860 cannot suddenly work as a 3G
camera phone by pressing a few keys.

> I for one have spend close to $1,000 last year upgrading the two cars'
> carkits to take the current "generation" of phones. Prior to that, we

More fool you

Michael wrote:

>> > A) As with most technologies an upgrade in equipment is required to
>> > take advance of new and better services.
>>
>> Pretty piss poor "response". Many people have purchased said equipment,
>> expecting it to last some years, given tha at the time, there was no
>> prospect of any future technology making it obsolete.
>
> Common sense, dickhead.

Tosser.

Nothing "common sense" about it. It's a marketing exercise, designed to
force customers onto a more costly service that they mostly won't use.

> Of course your 5-year old Qualcomm QCP-860 cannot suddenly work as a 3G
> camera phone by pressing a few keys.

Bzzzt. Wrong, as they say. I have a 12 mth old Nokia 2280 CDMA with the
associated car kit. While it's basic, doesn't take photos, play mp3s or
whatever, it performs superbly as a phone. And that's all I want it to
do. If I want to take photos or listen to MP3s I'll buy dedicated (and
superior) equipment.

>> I for one have spend close to $1,000 last year upgrading the two cars'
>> carkits to take the current "generation" of phones. Prior to that, we
>
> More fool you

I could do a Speed and go on about ****ing wankers and stuff, but I
daresay that it'd be redundant. What is your view of what isn't a
foolish purchase, particularly as there was no inkling of CDMA being
phased out 12 months ago?

> >> > A) As with most technologies an upgrade in equipment is required to
> >> > take advance of new and better services.
> >>
> >> Pretty piss poor "response". Many people have purchased said equipment,
> >> expecting it to last some years, given tha at the time, there was no
> >> prospect of any future technology making it obsolete.
> >
> > Common sense, dickhead.
>
> Tosser.
>
> Nothing "common sense" about it. It's a marketing exercise, designed to
> force customers onto a more costly service that they mostly won't use.

Pretty risky type of business I'd say, spending hundreds of millions to
*hopefully* increase ARPU?
Doesnt sound likely

Business likes ROI (return on investment). They like when you spend revenue
each month on something theyve already paid for.

> >> I for one have spend close to $1,000 last year upgrading the two cars'
> >> carkits to take the current "generation" of phones. Prior to that, we
> >
> > More fool you
>
> I could do a Speed and go on about ****ing wankers and stuff, but I
> daresay that it'd be redundant. What is your view of what isn't a
> foolish purchase, particularly as there was no inkling of CDMA being
> phased out 12 months ago?

Personally, I dont think its a foolish purchase in itself. But I'm not the
stupid one making an assumption that my hardware is going to be futureproof,
more than 3 years

If I buy a car kit for my car, I'm assuming it will fit my mobile for the
next two years. Nothing more than that
>
>