Optus aims to pull fast one on Telstra

OPTUS has unveiled plans to become the first Australian telco offering the superfast 5G wireless technology that promises speeds 15 times faster than those available on mobile networks now.

The move by Optus to steal a march on Telstra in the emerging 5G space came as the nation’s biggest telco announced its first foray into Silicon Valley had crashed and burned, costing shareholders more than $500 million.

Telstra revealed yesterday it was writing off the value it had attached to US-based video streaming business Ooyala.

It marks a blow to Telstra’s strategy to diversify from a telecommunications utility into a global technology player spanning software, data science and artificial intelligence.

Optus, which is owned by Singapore Telecommunications, yesterday said it would begin rolling out 5G — fifth generation — wireless technology in key metropolitan areas early next year.

All of Australia’s major telcos are working on the next generation of mobile network technology but Optus has become the first to offer a firm time frame for a rollout.

It says the wireless standard will play a key role in unlock- ing emerging technologies such as self-driving cars, smart homes and virtual reality.

Optus will initially offer 5G in homes through fixed wireless products such as plug-andplay home wireless broadband devices. That means it will also emerge as a potential rival to the National Broadband Network.

How soon mobile phones will be able to connect to 5G will depend on when handset makers incorporate the technology into their devices.

“Everyone has heard of concepts like self-driving cars, smart homes, AI [artificial intelligence] and virtual reality however their full potential will require a fast and reliable network to deliver,” Optus networks managing director Dennis Wong said.

The telco’s trial found 5G could deliver speeds up to 15 times faster than current technologies, Mr Wong said.

That “allows us to show the potential of this transformative technology to support a new ecosystem of connected devices in the home, the office, the paddock and in the wider community”, he said.

The planned launch of 5G comes after Optus successfully completed outdoor trials that achieved download speeds of two gigabits per second on a commercial grade device.