Telstra Hit As Big Client Walks From Their 5G Backend Service
In a major blow for Telstra Macquarie Telecom has ditched the struggling carriers wholesale backend for Optus because they believe Optus has a superior 5G offering.
The deal worth upwards of $34M comes as the Company is currently involved in having to renegotiate contracts with both Boost Mobile and JB Hi Fi two of their biggest partners.
Macquarie Telecom chose Optus over Telstra to deploy mobile services including 5G to its 100,000 business customers the move is a blow to Telstra’s 5G aspirations.
The deal follows a one-year review of Macquarie Telecom’s mobile solutions, an analysis that the company’s group executive Luke Clifton said showed a clear difference between the two competing telcos according to the Australian newspaper.
Mr Clifton told the Australian it chose Optus’s wholesale offering due to a focus on collaboration, a rapidly evolving 5G network as well as a commitment to future technologies.
“This is a big move for us,” Mr Clifton said. “And we’re seeing quite explosive growth in comparison to other players in the market.
“We’re growing around 21 per cent per annum and when we looked at the options for our customers, the coverage, the service, price points and everything, we came to the conclusion that the Optus product is a far superior product.
“This was a really easy decision to make. On behalf of our customers, we assess the technology that is available for them regularly, and clearly it was a better product proposition around Optus today than what was currently on the table from Telstra.
“The real difference is that you can have a good product, but if you don’t have a good service with it, you’ve really only got half the product.
The mobile deal was a multi-year agreement and services would be available to all customers, with existing customers transitioning over the coming months, Mr Clifton said.
The process will be managed end-to-end by Macquarie’s dedicated and local mobile support team, with 5G plans available immediately to new and existing customers.
Optus currently has more than 1000 live 5G sites covering more than 830,000 households across Sydney, Melbourne, Adelaide, Canberra, Perth and Brisbane.
“Macquarie has a great reputation for customer service and Optus is genuinely excited to be partnering with Macquarie to deliver mobility solutions that businesses need today more than ever,” Optus managing director for wholesale, satellite and strategy Ben White said.