Telstra has rejected claims by Vodafone CEO Inaki Berroeta that taxpayers had funded its regional mobile phone network, saying it has spent billions to boost coverage.
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Mr Berroeta was in Dubbo on Thursday and said residents would benefit from the introduction of domestic roaming, which would allow users from any network to connect to another carrier’s tower when needed.
However Telstra area general manager Mike Marom said Vodafone’s claim that Telstra had built their network primarily using government funding was untrue.
“The expansion of Telstra’s mobile network has been funded by shareholders and customers who value coverage, not by the Government or taxpayers,” he said.
“In the decade prior to the Mobile Black Spot Program, government funding accounted for less than 1 per cent of Telstra’s investment in the mobile network.
“Over the past 10 years Telstra has invested 15 per cent of our capital expenditure in the mobile access network to service the most remote 2 per cent of the population.”
Mr Beroetta said Telstra had an advantage when it came to applying for blackspot funding because of the size of their existing network.
He said that in turn drew more customers, who paid a premium for Telstra’s service, which helped keep the monopoly going.
“They received taxpayer funding to build their network and then they charge their customers a premium to use the service,” he said.
Mr Beroetta said Telstra made approximately $1.4 billion per year as a premium from people who had no choice but to use Telstra because of their coverage advantage.
Mr Marom said it was in Vodafone’s interest to gain access to Telstra towers in regional areas, but said claims that it would lead to more investment were wrong.
“While some businesses try to promote mandated mobile roaming as a way to improve mobile telecommunications in regional areas, in reality it is much more likely to do the opposite,” he said.
“Regulated roaming will only take away the incentive for all carriers to invest.
“Telstra has spent billions of dollars building a superior mobile network for the bush, reaching 99.3 per cent of the population and covering 2.4 million square kilometres – more than double the coverage of our nearest competitor.
“And Telstra has substantial funding planned to expand and upgrade our regional and rural network. Through the Mobile Black Spot Programme Telstra is partnering with local, state and federal governments to deliver $486 million in investment for rural and regional Australia. “
Mr Marom said Vodafone needed to commit to investing in regional areas.