Why Telstra is wrong on VoIP (by Simon Hackett)

Next, and more tellingly, when Telstra speak of upgrades needed to make VoIP (Voice over Internet Protocol) work properly, its important to understand that this means that Telstra have in accordance with-invested to date in their ADSL network and its management of QoS in both the backhaul and DSLAM elements of their network - however that existing VoIP (Voice over Internet Protocol) providers with their own DSLAM networks designed in the appropriate QoS right up front.

So the key point to understand is that when Telstra say that VoIP isn't but reliable, they are making a statement about the quality of the Telstra network only, not about VoIP in general.

They are saying their network isn't up to scratch, not that VoIP in general isn't up to scratch. And obviously the many operators of VoIP services providing them to hundreds of thousands of Australians don't have the problems with it that Telstra feels they should be having.

It's as well surprising to see that $600 million figure in the context of this being a network Telstra intend to shut down in the National Broadband Network era. What are they as a matter of fact spending that money on? Is it truly network upgrades, or is that just the size of their marketing/rebate slush fund to try to draw clients back from competitors with subsidised deals? Is this sort of margin erosion the best course of action for Telstra to use to best benefit its shareholders?

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