Australian operator Telstra has partnered with Hutchison, allowing H3G to use it’s Next G network, in areas where the smaller company does not own a network. The deal comes at a good time for Hutch, who posted a half-year loss of $85 mn, but have strong revenue growth and customer acquisitions.
The new arrangement will allow Hutchison, which is growing faster than Optus and No3 mobile group Vodafone, to compete for customers in 96 per cent of the country by the second quarter of next year. Hutchison will also build its own network to another 4 per cent of the country, taking its coverage to 60 per cent of the Australian population.
It’s understood that there is a strategic element here, with Telstra freezing out Optus, in a deal worth more than $120 mn per year. Certainly the difference in coverage between the operators is closed right up now. The Next G network apparently can burst up to 14.4Mbps, and covers a 2 mn square km area.
[Via: theaustralian.news.com.au]