Telstra clear to access 3G network

Telecomworldwire, Dec 10, 2004

TELECOMWORLDWIRE-10 December 2004-Telstra clear to access 3G network(C)1994-2004 M2 COMMUNICATIONS LTD http://www.m2.com

The Australian Competition and Consumer Commission (ACCC) has announced that it has approved telecomms company Telstra's proposed use of fellow mobile phone operator Hutchison's 3G network.

A AUD450m 3G radio access network sharing agreement, struck between Telstra and Hong Kong-based Hutchison in October 2004, will now come into play on 1 July 2005 when Telstra will commence 3G services. The deal will see Telstra not only gain access to Hutchison's 3G network but also gain a 50% stake in its infrastructure.

The ACCC said that the arrangement will save both companies significant costs that will benefit the market in the long run despite the reduction of infrastructure-based competition likely in the future. The ACCC also said that the agreement would also allow for the faster introduction of 3G services in Australia, reports Asia Pulse.

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