Telstra's $800M Move to Compete | Dirt Report

Telstra’s $800 million network investment

Telstra is preparing to spend $800 million on its mobile network over the next four years. The investment is aimed at improving mobile coverage and increasing internet speeds as competition from Optus and TPG Telecom intensifies.

The plan is being delivered alongside a partnership with Ericsson. The upgrade will use Ericsson’s Open RAN-ready hardware and 5G Advanced software. According to the information discussed in the video, the system includes artificial intelligence-driven automation, self-monitoring and self-repair features.

Telstra says the changes are intended to double 5G capacity, improve network reliability and performance, increase upload and download speeds, and reduce energy use. The project is also expected to benefit consumers and businesses, while supporting future industrial and enterprise applications.

Programmable network capabilities

The Ericsson partnership is also intended to introduce network application programming interfaces, or APIs. These could allow third-party developers to create customised applications and services that make use of Telstra’s network capabilities.

The practical applications are not yet clear from the available information. The concept is to make the network more flexible and programmable, rather than limiting it to standard mobile connectivity. The investment may therefore support services beyond faster phone and data connections, although the specific products and use cases have not been detailed.

Belong broadband upload speed complaints

The network announcement comes while Telstra is also dealing with an ACCC matter involving Belong NBN customers. In October and November 2020, Telstra migrated 8,897 customers from Belong plans advertised with maximum speeds of 100 megabits per second download and 40 megabits per second upload to services with a maximum upload speed of 20 megabits per second.

The ACCC said 2,785 customers who acquired the 40 Mbps upload plan between 2017 and 2018 were represented as receiving that service when they were not. Telstra provided those customers with a $90 credit in 2021.

The court also found that a further 6,112 Belong customers had been given false or misleading representations. Although the maximum upload speed was not explicitly stated to those customers, the court found they could reasonably have understood that their service remained materially the same, including its upload speed.

The ongoing effects of the 3G shutdown

The 3G shutdown has created additional problems for some customers. Certain phones can use 4G for data and messaging but still rely on 3G for voice calls. Those devices may stop working after the shutdown, even when they are described as 4G-capable.

The video also highlights concerns about customers receiving incorrect advice about whether their phones would continue working. In one example, a phone stopped working after October despite advice that it would remain operational, requiring its owner to purchase a replacement.

Regional customers, including farmers, have reported new black spots, increased dropouts and difficulty making calls. A phone may show a signal while still being unable to complete a call. Some devices may also require a setting change, although the solution depends on the phone and network configuration.

Complaints and coverage concerns

The latest ombudsman report mentioned in the video recorded 15,529 complaints in the final quarter of 2024, a 5.6 per cent increase compared with the same period a year earlier. The complaint categories included delayed action by providers, service or equipment fees, no phone or internet service, intermittent dropouts, inadequate fault testing, difficulties cancelling services and agreed resolutions not being delivered.

The 3G shutdown has increased attention on the difference between advertised coverage and practical service. Telstra has historically been associated with coverage in areas where other providers were weaker, although the video notes that Optus and TPG have also improved their networks. The effect of the new investment on 4G coverage in areas affected by the 3G shutdown remains unclear.