With the Australian Federal Government hoping to raise $2.6 billion from its third generation mobile spectrum auction just days away, Switkowski would not be drawn on how high Telstra's bid may go, but was confident the local telco giant would be a market leader.

“We'll be a player, we're confident we'll be the leader,” he told the Seven Network's Sunday Sunrise program.

“So, we would like to have 3G spectrum if it's priced appropriately.”

Telstra will bid alongside Cable & Wireless Optus, Telecom of New Zealand, Vodafone Pacific, Hutchison Telecommunications, CKW Wireless, and 3G Investments (Australia) for spectrum licences which will be used principally for 3G mobile telecommunications.

Successful bidders will be allocated licences for a 15year term commencing in October 2002.

If the price was not right, Telstra would consider its alternatives for delivering 3G services, Switkowski said.

“No, (we won't buy) at any cost because there are alternatives,” he said.

“You can deliver 3G services at different frequencies and 2.5G which is what will carry us forward will take us a long way into this decade.”

Telstra's modelling had identified several business scenarios five years into the future that meant securing 3G spectrum licences now was not critical for the carrier.

“Even if we were not to have 3G spectrum today, if you fast forward five years down the line and try to predict the Australian competitive environment any number of scenarios could unfold,” he said.

However the telco remains “big believers” in the 3G future to deliver nonvoice services such as accessing the Internet, and enabling online transactions.

“It would be unusual for a telco in our position not to have 3G spectrum as we move into an environment where the whole wireless world is putting most of their innovation resources into 3G services,” Switkowski said.

Meanwhile the Telstra chief also said last year's erosion in market share for its traditional voice telephony products had subsided.

“Our competitive position at the moment is quite good,” he said.

top