Telstra launches 4G network but expert says it’s not a disruptive change to telco market

Telstra unveiled its 4G network this morning, releasing its first consumer dongles and promising speeds up to 25 times faster than existing 3G networks.

The new network will initially be available in capital cities and in 30 regional areas, with around 50 further regional areas expected to come online by the end of the year.

At this stage Telstra has only released wireless broadband dongles in its 4G range but the giant telco expects to bring 4G smart phones and other 4G devices to market next year.

“We know there is a huge appetite for 4G-powered smart phones and tablets and Telstra is working with some of the world’s leading manufacturers to bring some of these devices to customers in the first half of 2012,” Telstra chief executive David Thodey said.

Telstra says the 4G network will increase download speeds to between two megabits per second and 40Mbps, compared to speeds of about 1Mbps to 20Mbps on the 3G network.

Upload speeds will increase from 0.5-3Mbps to 1-10Mbps.

While the arrival of 4G in Australia has been some time in the making, telco analyst David Kennedy from Ovum says Telstra’s rollout isn’t a game changer for the industry.

“The way Telstra has positioned this is that the technology is integrated into their existing offer,” Kennedy says.

The new dongle will switch between 3G and 4G depending on the coverage area so Kennedy says the impact on consumers will be minimal. 

“The user won’t see any of that. They might notice some improvement when they are in those coverage areas,” he says.

“Telstra is not really positioning this as a disruptive change to the market. They are trying to position this as a seamless transition for customers.”

Vodafone is expected to have its 4G network in place later this year with Optus to follow next year. 

“I think we’ll see similar kinds of approaches from those companies. The emphasis here is on continuity,” Kennedy says.