Telecom signs with Vodafone to build Aussie mobile brand

Under the terms of the agreement Telecom says it will purchase capacity at wholesale prices and connect to Vodafone Australia's network while operating its own brand, Cellular One. Vodafone, which runs a GSM network in Australia, will manage all interconnect and roaming.

Telecom Mobile GM, Mohan Jesudason, says the agreement will improve Cellular One's business model and provide greater future flexibility.

"Customers will benefit from Cellular One being able to create new products and pricing plans, including packages involving other AAPT services. This will ensure Cellular One can compete more effectively."

Telecom's Australian subsidiary, AAPT, currently resells both GSM and CDMA access from Vodafone, Optus and Telstra but the company says the wholesale agreement will provide a better margin.

A Telecom spokesperson, Linda Sanders, says the deal is effectively a replacement for AAPT's CDMA network, which was canned earlier this year.

Telecom also owns a 20% stake in Hutchison 3G, the Australian company set up in conjunction with Hong Kong-based Hutchison Whampoa and Australia's Hutchison Telecommunications to provide third generation (3G) products and services.

The 3G services are due to be introduced in Australia before the end of 2002.

Vodafone says the new wholesale capacity agreement with Telecom will grow the both the utilisation and revenue generation of its mobile network.

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