www.WirelessFederation.com/news: With Optus racing ahead by 10.9 per cent in the last quarter, Telstra and Vodafone emerge as the apparent losers in a competitive market that has grown by some 8 per cent. Telstra has been simply left behind in the market with Optus becoming faster with new products and plans and using its gains to boost network performance which in turn paves way for more market share gains. The mobile earnings reported an increase of 5% and the revenues were boosted by 12.9%. 

Optus last year’s earnings from its mobile division increased from 59 per cent to 63 percent. Exploitation of new devices like the iPhone is a major reason behind the profit of Optus as in the process it not only got better customers but higher-quality customers. It is also offering bundled offers on longer contracts in an attempt to lock in customers.
The tough competition posed by Optus is the reason why Telstra is cutting prices and ditching its past policy to protect its profit margin at all costs. It is also the reason why Optus is so keen to get the NBN project under way in order to increase the pressure on Telstra.

National Broadband Network Implementation Study has been released by the Australian government which outlines the plans to finance and build the new network.  84 recommendations on the technology, financing, ownership, policy framework and market structure of the NBN has been offered by the report to the government. Australian government and Telstra have been in talk with each other for several months on selling part of its fixed network assets to the NBN, but the two have been unable to reach an agreement on the price.

With its foot on Telstra’s throat, Optus now has an ideal time to float but at the same time the official line on that issue has not changed: no present plans. While OPTUS boss Paul O’Sullivan has taken a lead now, he also feels that Telstra will fight back to revive its diminishing market share with more and more lucrative offers.