Australian telco heavyweight Telstra launches attack on Apple iPhone

Tim Gaden
19 February 2007, 5:20 AM


Telstra Operations Chief Greg Winn has unleashed a blistering attack on Apple's new iPhone, labelling it old hat and suggesting that Apple doesn't have the gumption to produce a capable mobile phone.


Telstra Operations Chief Greg Winn has unleashed a blistering attack on Apple's new iPhone, labelling it "old hat" and suggesting that Apple doesn't have the gumption to produce a capable mobile phone.

According to an AAP report, he thinks Apple is not up to entering the world of mobile telephony: "There's an old saying -- stick to your knitting -- and Apple is not a mobile phone manufacturer, that's not their knitting."

I wonder how many people are kicking themselves for suggesting, way back when, that Apple is not in the digital music player business. Obviously, any attempt by the company to move out of computers into that market segment could only result in disaster.

Winn is also reported as making a slightly-confused attack on the Apple's claim that the iPhone "ushers in an era of software power and sophistication never before seen in a mobile device, completely redefining what you can do on a mobile phone."

Not so, he thinks: "I think people overreacted to it -- there was not a lot of tremendously new stuff if you think about it... It was maybe kind of cool on the touchscreen technology but touchscreen technology is another domain, so it's only a matter of time before it went to the device."

Other, more experienced mobile phone manufacturers are just about to launch their own "iPhones", he says: "You can pretty much be assured that Nokia, Samsung, Sony Ericsson and ZTE and others will be coming out with devices that have similar functionality."

Whether or not one agrees with the way Apple is using them, the 200 patents in the iPhone and Steve Jobs pointed remark during the launch of the phone that Apple "intends to protect them", makes extremely unlikely that any major player will be producing a device with the same style, flair and good looks as the iPhone.

In any event, Winn seems immune to the charms of Apple's design philosophy, which emphasises not only innovative technology, but even more importantly, innovative design, as the keystone of award-winning devices. And increasingly number of people are willing to pay a premium for the quality of Apple design, preferring the way Apple adds value through "functional beauty" over the "similiar functionality" offered by other companies. Think Apple vs. Dell.

Telstra has a long-standing record of resisting the cutting edge. For example, although it could have run its ADSL1 broadband network at up to 8 Mbp/s, for "operational reasons" it capped it to 1.5 Mbp/s. Only when competitors began to offer ADSL1 at full throttle through their own DSLAMs, did Telstra feel the need to open up the choke on its network.

No one claims that the iPhone is perfect. But it is certainly revolutionary enough for its full impact to fall off the radar at Telstra. That's a shame even if it is not a surprise.


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David Flynn:

Bloody oath, I wish Telstra would take some of Winn's own advice and stop fart-arsing around with You Tube wanna-be services, streaming video 'exclusives' (yet more V8 Supercars!) for BigPond and all those other activities which are not core to being a telco. If Telstra would stick to their own knitting and just focus on being a telecommunications carrier -- on providing phone, Internet etc -- we'd all be a LOT better off, and I daresay that their own parlous state may even improve.


29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Michael Ryan:

As a card carrying mac fan, i wasn't that impressed with the iPhone presentation either.. I know , heresy, however it wont replace my iPod and dosent go far enough as a palmtop / pda or smartphone... yes it has a cool screen but cast your mind back to the scratchable nano!!

I want an ipod, wifi phone with skype and access to my home mac.. a mobile phone with gps, decent digital camera. and on a tarriff and network of my chosing and .... makes me look even more attractive... now is that asking tooooo much


29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

raindog:

What's up David don't you think paying too much on a 2 year service deal for a crook service, with an open ended price model, isn't good value even when it includes dodgy video of what's available free to air anyway? You are hard to please. :>

I think the problem you'll find at Telstra is there is no-one left that can knit. They couldn't go back if they wanted to!

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

Addison:

I agree with what David Flynn and with what Winn has said. I have been a Telstra customer for over 10 years and since moving to ADSL I had no issues for first two years but last 12 months all I have had is issues with them. One large one is they do not communicate some phone charges or internet changes to you, the customer until you get the phone or internet bill and whether you notice it or not. I for one believe they are more concerned about recruiting new customers and adding too many unneccessary services that no-one uses that they forget about their LOYAL TELSTRA AND BIGPOND CUSTOMERS! I am currently invstigating to take my business elsewhere as I know I can get better service and a better quality product for a cheaper price.

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

meinrosebud:

Telstra, oh yeah... lightweight australian telco who resorts to the same type of tactical as Microsoft when dealing with competitors... Crush, Kill Destroy. Apple will be really concerned about his comments, I don't think so.

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

tin:

I expect Steve Jobs to personally appologise to each of Telstra's top management staff tomorrow. He is very sorry for even thinking of releasing a product that caters to a market he beleives is there.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Bert Altenburg:

It suddenly is clear to me what a big mistake Nokia, who were in the lumber/paper making business if I recall correctly, made. It is very sorry that Mr Winn's solid advice and reasoning comes too late for Nokia and but fortunately is just in time for Apple, which I will be the first to label as "doomed".

Bert

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Mal Veitch:

Hmm... let's see... Telstra share price? Through the floor. Apple share price? Through the roof. I think Apple's has the runs on the board in the knitting department. Did I just mix a metaphor?

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

raindog:

No, but you may have dropped a stitch.
Knitting skivvies must be serious business!

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

Rob :

Great rejoinder, raindog!!! I am not going to rant about Telstra but what a useless telco! My son had the privilege of their "service" in Rockie for 2 years-- needless to say, iChat wouldn't work, the speeds were prehistorically slow-- when the system did work- though never enough to get iChat running. At least things are a bit better in Adelaide, though for 24 bucks a month I get 7down/1up here in Southern California... Australia was at the bottom of a list that included TURKEY!!!!! for the worst telco service offered in a worldwide survey... bloody Telstra.
OK, I ranted ;-)

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

Barney:

Telstra is a Microsoft company. It uses its services, it pushes its technology.

Hardly surprising it also pushes Microsoft's attitude to the iPhone.

Can't see them being Apple's preferred supplier of 2.5G with that attitude. Hang on, maybe they already know they're NOT the preferred supplier! Maybe THAT'S why they're poo-pooing it? Dunno.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

hasapi:

What's this premium Apple pricing?, I just found the SE w880i i want to get it has 1G, no wifi, no widescreen, no usable browser, no visual voicemail, etc, etc and it is $899 - which will be around the price of the superior 4G iphone (US$499) - and maybe the 8G model.

Then check out the Nokia N93 or the LG Prada phone prices - all over $1000!. As for Telstra's comments, typical of monopolistic gatekeepers.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Barney:

and don't forget the Apple price includes a contract (2 years I think).
Hopefully Apple will cut a 3G deal by the time it's released in Oz.
BTW, typical Telstra Bleeding Edge tech co: releasing 2.5G years after 3G is released!! ;-)

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

a_real_user:

Telstra - clean up the crap in your own backyard before telling others to clean up theirs!

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

chris kelly:

hes got a point on a few aspects of the phones technology.. first touch screen ya.. pinch feature borrowed of other peoples prototypes.. wireless lan access has been done already and with out that you'll be stuck on 2g wap.. 2mb camera is out dated theres better out there at 3.2mb from sony. although there photo software again looks good but its just a extention of itunes. calander well what can i say just a calander really.. google maps remains interesting.. but take a second to ponder trying to use it on a wap connection if theres no wireless.. and all those gadgets are candy oh wait they call them widgets.. again nothing new. a concept they stole from konfabulator for there osX... so really just a bloody nice touch screen.. oh there voice mail system i like that.. but one last thing... do you think its smart to have a non removable battery in it, nup thats narrow mindedness at best

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Tony:

You know, Apple never said they invented any of the things you mentioned, although they apparently have over 200 patents for stuff you DIDN'T mention.

What they HAVE done is to integrate all those things, plus more into one device - and actually build it, then sell it. THAT'S what no-one else has done.

Dunno 'bout the battery - no-one's actually seen that yet - but that's what they presume. I guess when it actually ships, then we'll see if the battery is a) fixed and b) whether that matters or not. I myself haven't bought an extra battery for any of my phones in the last 6 years - how about you?

The best thing I like is the way web pages and eMail is handled. WAP and all that other stuff is maybe the worst user experience in the world. Ever tried browsing on your phone? Yech! I'd buy an iPhone just for that alone.

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

ShadowKnight:

The iPhone is a gimmick and VoIP is a fad too isn't it? It must be, after all Australia's largest telco and ISP is not even in that market. They know all and we as Australians must believe them.

Now in the real world the street cred of Telstra in the telco market is closing fast on the security credibility of Microsoft. That is none.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

meinrosebud:

too right! As popular as as a chokito floating in a pool

29 February 2008, 8:38 PM (3 years ago)report abuse Send to a friend reply

real:

This 'heavyweight' isnt even a fart in the water, and neither is Teltras importance in world wide telcommunications market.
Its a case of punching out of his class im afraid.
What has telstra done for technology in the last 2 decades? f-all thats what, so before this wanna-be big-wig starts slagging off Apple and their real innovation , take a look at the very real premonition of a whole lot of people going to where the iPhone will be down under, most probably vodafone or 3.
Suck on them apples.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Sttevee:

It's this typical stupidity from Telstra we've all come to know. I have never seen so much hype over a mobile device before the iPhone announcement at Macworld. The world has been waiting for a decent handset with these capabilities. And although it's not really market tested and it's first generation.. Winn would have to be a complete fool to diss it.

I hate everything about Telstra I truly do. My Internet speed sucks and my phone bills are a rip-off... their support people are useless and I'm sick of their stupid billing system sending me random invoices. Come to think of it I'm going to call iiNet tomorrow and change my phone line.

Rant over.

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Wayne:

I hate Telstra too. A few years ago I had two Telstar home phone lines, 3 Telstra mobiles and BigPuddle internet. After 18 months they still could not get their billing to be on 1 bill etc. Also whenever it rained my home lines would fail. My BigPuddle would constantly be disconnected too. I also had T1 shares and after contracting at Telstra IT in Melbourne on behalf of IBM, I cancelled all my Telstra products and sold my shares.

The only thing that would stop me from running out and buying an iPhone would be if I had to use Telstra!!!

29 February 2008, 8:41 PM (3 years ago)report abuse Send to a friend reply

zax:

As they say on macdailynews.com Greg Winn with his asinine and risible comments have been - iCal'd - for future reference.


29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

AlexC:

Yes well i think we all know how much Telstra works for them to make a comment like that....

Always a case of throwing up on a ferarri on a friday nite for telstra though - how stupid do you have to be...

i haven't seen my bigpondbook pro yet the bloody knobs!! yet they have a go at apple who obviously do better than they do

its like watching a chihuahua barking at a great dane - Well done Telstra the Chihuahua!!

seriously i would rather go and watch the toilet spin a log round and round in circles for 2 seconds than listen to/read from a guy with a knob on his head... matter of fact i'll do that now

Well done Telstra for trying

29 February 2008, 8:30 PM (3 years ago)report abuse Send to a friend reply

Matt:

This article hopefully will come back to bite Telstra's ass now that Sol Trujillo is kinda liking the iPhone...

29 February 2008, 8:32 PM (3 years ago)report abuse Send to a friend reply

Bilk:

Oh please everyone - Lets not have Telstra be the carrier of choice when it comes out. Why mess up a great product...

Hope Winn loses out. Anyway he will probably get a consolation prize of a free Xmas ham or 2 from Bill.

If Winn wins we lose....

29 February 2008, 8:49 PM (3 years ago)report abuse Send to a friend reply

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