Australian telco heavyweight Telstra launches attack on Apple iPhone

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Tim Gaden19 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.


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


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!

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.