The iPhone effect
Filed under: Apple, customers, entertainment, Facebook, gadgets and gizmos, innovation, iphone, iPhone 4, lifestyle, mobile internet, Next G™, smart phone, social media, Twitter
On Friday iPhone 4 arrives on shelves across Australia. It’s the most advanced iPhone yet.
Based on our pre-registrations of interest, it’s also the most hotly anticipated iPhone yet. The customer excitement isn’t that hard to understand when you think back to how the iPhone changed the mobile landscape forever.
In 2008, Australia’s first iPhone (the iPhone 3G) was a revelation. It introduced us to design elements that would reshape our view of what a mobile phone should do.
The App Store, touch screens that worked without a stylus, gesture-based touch control, intuitive web browsing that made using full internet pages possible on the small screen – these were just some of the breakthrough features that the iPhone perfected.
And these innovations led to new ways of using our phones. Customer use of social networking, web search, music, instant messaging, news and video exploded.
Next G network figures bear this out. For example, Telstra iPhone customers:
- Browse four times more web pages than the average Telstra smartphone user.
- Are three times more likely to use Facebook, eight times more likely to access news sites like The Age and eight times more likely to Google search.
- Subscribe to Mobile FOXTEL from Telstra around twice as much as the average Next G mobile user.
Customers loved it. Mobiles had become true internet devices — not just tools for talk and text.
Smartphones need a smart network
The iPhone’s ability to bring the mobile internet into customers’ hands also brought the quality of mobile networks in to sharp focus. As iPhone adoption soared, some Australian networks buckled under the load. 
Customers reported slow page loads, extended buffering while streaming online media and age-long waits as they tried to update their social networking profiles. For many it was a mobile internet experience closer to dial-up than mobile broadband.
Telcos with foresight invested in their networks to stay ahead of the demand for data. For instance Telstra has now invested more than $2 billion in the Next G network to best ensure customers get the speeds, coverage and reliable access to online services they paid for.
Speed matters. You just have to look at what happened when the iPhone 3GS launched on the Next G network to appreciate this. The speed jump (data speeds are around twice as fast on iPhone 3GS than on iPhone 3G when teamed with a capable network) contributed to a 40 per cent increase in data use. In short, the faster access speeds coupled with iPhone 3GS’s more powerful processor made the mobile internet on iPhone even more responsive and the total experience for customers even more compelling.
iPhone 4
It’s only been two years since iPhone 3G launched in Australia. But in that time, so much has changed. While other handset manufactures have been catching up (capacitive touch screens, app stores and advanced web browsers are now mainstream) iPhone remains a leader.
The great news is that the iPhone 4 is Apple’s most advanced model yet. The display (it has four times the pixel count of previous iPhone) is stunning. New features like multi-tasking and HD video recording will also really appeal.
The iPhone 4 also introduces faster upload speeds that are around twice as fast as the iPhone 3GS. This makes it faster to do things like send emails, upload pictures to Facebook and to synchronise data. Only Telstra’s Next G™ network is engineered to support these improved upload speeds which are available in all capitals and selected regional areas.
Telstra iPhone 4 pricing
We’ve listened to our customers. They told us they want great value pricing — as well as a great network. The iPhone 4 will be available at a lower upfront cost (compared to when we launched 3GS) and will be available on our new great-value cap plans.
For instance, customers can purchase the iPhone 4 16GB at no upfront cost on a $79 Cap Plan or above, when signing up to a 24 month plan, and this offers a great combination of standard national calls, text and picture messaging – up to $750 per month – to customers on any Australian network plus 500MB included data to use in Australia.
Here’s a snapshot of the plans available (this is the original table. The data allowances will be revised from July 30. See table below)
| $49 Cap Plan | $79 Cap Plan | $99 Cap Plan | |
|---|---|---|---|
| Monthly fee | $49 | $79 | $99 |
| Monthly Included Value* | $400 | $750 | $1000 |
| Data credit | 200MB | 500MB | 500MB |
| iPhone 3GS 8GB | $0 Min cost $1176 |
$0 Min cost $1896 |
$0 Min cost $2376 |
| iPhone 4 16GB | $149 Min cost $1325 |
$0 Min cost $1896 |
$0 Min cost $2376 |
| iPhone 4 32GB | $299 Min cost $1475 |
$199 Min cost $2095 |
$0 Min cost $2376 |
Revised data boosted plans for iPhone 4, iPhone 3G S until 1 November 2010
| $49 Cap Plan | $79 Cap Plan | $99 Cap Plan | |
|---|---|---|---|
| Monthly fee | $49 | $79 | $99 |
| Monthly Included Value* | $400 | $750 | $1000 |
| Data credit | 500MB with our new bonus data offer^ (up from 200MB) | 1 GB with our new bonus data offer^ (up from 500MB) | 1 GB with our new bonus data offer^ (up from 500MB) |
| iPhone 3GS 8GB | $0 upfront. Min cost $1176 |
$0 upfront. Min cost $1896 |
$0 upfront. Min cost $2376 |
| iPhone 4 16GB | $149 upfront. Min cost $1325 |
$0 upfront. Min cost $1896 |
$0 upfront. Min cost $2376 |
| iPhone 4 32GB | $299 upfront. Min cost $1475 |
$199 upfront. Min cost $2095 |
$0 upfront. Min cost $2376 |
*Included monthly value can be used for Standard National Voice, SMS and MMS calls to any Australian Network.
Further pricing details will be launched over the next couple of days.
^Bonus data offer available 30 July-1 November 2010 unless extended by Telstra. Offer available to new or re-contracting customers who purchase an iPhone 3G S, iPhone 4, HTC Desire or Nokia N97 mini on a Next G™ Cap Plan or Ultimate II Plan ($55 or above) for 24 months. Offer not available on Business Plans. Offer only applies to data included on customer’s plan and to additional data purchased at time of connection. Unused data expires each month. Usage excludes content and international roaming charges. Bonus data allowance applies for the full term of the customer’s eligible contract plan. If the customer’s eligible contract plan is cancelled, the bonus offer will cease to apply.
Telstra will be giving customers a chance to get in early to purchase iPhone 4 by opening selected Telstra stores at 12.00 AM Friday, July 30. The full list of stores opening at midnight is available at online here.
More information:
Over to you. Will you be getting iPhone 4? Has the iPhone change the way you view and use your mobile phone? Do network speeds and reliability make a difference to the way you browse the mobile net and update your social networks?
If there was a better data inclusion I would have connected with Telstra, seems to be the case for most as well. 1 gig would do it on the $79
Again ill ask.
Maybe this time it will get answered.
Is there an option for a 12month contract on the consumer plans?
Have Telstra tested the reception of the i-Phone 4 and rated the suitable areas for hand held reception as they have for all other Telstra mobiles
I would really like visual voicemail and Better data (1GB or 2GB)
From what I’m gathering, I can buy the iPhone outright and unlocked direct from Apple.
But what’s the logistics going to be given that the iPhone uses the micro SIM’s?
Will Apple have a stock of these micro SIM’s for the various carriers in order that you can just pop it in and ring up your carrier and get them to swap your existing account / phone number acorss, or will we then have to head to the local Telstra store in order to physically get a micro SIM and convert our accounts across?
Thanks Brendan, although that takes me back to the same page. It seems you are trying to link me a comment but I can not find it. My question other then the business mobile plus plans will the business mobile cap plans be available and what will they be? Same or different and what will the handset repayment be?
Visual Voicemail????
Visual voicemail
http://support.apple.com/kb/ht1486
Agreed, most of us know what visual voicemail is, but will Telstra offer this feature on the Next G network?
I am happy with the rest, but Visual Voicemail is a deal breaker, will it be offered?
So let me get this straight, Telstra still isn’t offering visual voicemail, are only offering 24month plans (even though Apple releases a new Iphone every 12 months) and when comparing their Iphone4 offering to the other price currently in the market – say at the $99 per month rate – they are offering 1/10th of the data download, and are offering a capped plan compared to an unlimited plan for domestice voice, and no included international calls compared to $100 worth of international calls!! And I thought that they were going to try and bridge some of the price gap between them and everyone else
Thanks Brendan, that sounds like good news. I’m looking forward to visual voicemail on NextG, hopefully before the iPhone 5
I don’t find Voice2Text particularly useful, except for some comic relief. Australia is a country of many accents and languages, and not everybody speaks the Queen’s English. V2T certainly can’t figure out my or my wife’s German accent
I’ve just received some news from the product guys that we’re close to a solution on visual voicemail. Thanks for your input and patience everyone – Stay tuned!
If I want to purchase 2 iPhones for use in our Business do I have to go with a Business plan or can I go for the consumer cap plan? The bills would be paid for by the business that has an ACN/ABN.
Where do I find Telstra’s mobile call rates – are they different for business and personal? I am trying to compare the Iphone 4 rates for business and personal – I can’t work out why I would chose the business rate unless I need the data – I am considering moving from Optus – with 2 phones
Looks like Optus have trumpt Telstra’s plan yet again. Pity their network is not as good.
We upgrade both my 3G to 3GS and through product availability got 2 32 gig phones, family calls gives us free calls between all three phones, home included, BUT:
200mb of Data? All that’s happened is the 10 dollar add on is gone. Sure to add the data pack I get 300 more for 10 bucks, but I’m on a cheaper plan to save money..
You have to up the data limits for these current caps without forcing end users to start new plans all over again. The other carriers offering1 gb in data says it all.
The plans are much better than before but the data provide is really not enough for real iPhone 4 experience.
Given this is a smartphone that couple tightly with the internet by having only 200MB or even 500MB is really not enough.
Is there ways we can upgrade these plans to 1GB? either by paying a fee or having an alternative iphone 4 plans?
I dont think the average iphone user would find these plans at all good enough, they would have been competetive at the release of the iPhone 3G, 2 years ago!
I was hoping that Telstra would continue in there more competitive ways of late to get me to port my services.
I guess i was wrong and will be sticking with Optus.
$59 cap – 16GB iphone 4 $0
unlimited sms/mms
unlimited calls to optus mobiles/landlines
$550 included calls
2gb data
thats competition!
The data allowances suck compared to Optus, or probably any other carrier when they release their plans. Sorry Telstra, you loose my business again.
Ross/Brendan,
looking at Optus plans, these plans do look bad even taking into account NextG is twice as fast or more coverage factor.
i think telstra has to up their data limits for these plans, at least for iPhones. Telstra can still win this war, coming out with new announcement on Thursday.
But for me, these plans are great as we only use limited data. so, i still think these are great plans based on our needs. so its matter of if we can get a phone on the day, or we wait till there’s more stock.
Unless Brendan can get sales guys to call me to sign up, it will be done straight away – home bundles with two iPhones… i am optimistic.
I believe the data allowances included within even the new caps for the iphone 4 release, should be as follows:
$49 cap = 400MB
$79 cap = 750MB
$99 cap = 1GB
This would make many people happy and would get much more than 2x the sign ups to the NextG network
I do work on behalf of telstra and this is just my opinion. But to get more customers on this one they will actually need to bump up the data allowances to compete with the other telcos….
Does anyone know if Optus or Vodaphone are releasing the iphone on friday? There 3gs plans seem to be better.
Will the iPhone4 be locked to Telstra network? If so what is the unlocking fee? Will the lock be removed without charge after the contact (24 month) expires ?
Brendan, I think Alex’s question (like mine) is about the Business CAP plans, not the Member plans… Cant find a thing about those anywhere.
Hi Loren. The only info we have on business plans is here
http://www.telstrabusiness.com/business/portal/online/site/productsservices/iphone4.190024
It is interesting to read the comments such as: “Please go and learn from Optus and Vodaphone who understand the data need for smartphones…”. If Optus and Vodafone understood the data need for smartphones – their network would actually be able to deliver data at a usable throughput and reasonable ping time. But they don’t. Telstra isn’t the cheapest for a reason – quality (coverage, data speed) is remembered looooong after price is forgotten.
Worried about ‘Antennagate’? You may be interested in this post from Ed Dale:
http://www.eddale.co/general/on-reception-the-iphone-4-hysteria-the-real-lifelab-test-conundrum
Personally, I can’t for midnight Friday to check out how much of a problem this will be (if at all) on the NextG Network.
You might like to take a look at this comparison of plans – http://www.macinations.net/2010/07/28/iphone4-plan-comparison-spreadsheet/
@vance
I wasnt asking what it is… I was more asking why Telstra still overlooks this feature!
+1 for visual voicemail. I would love to have this feature and at the moment Vodaphone are the only ones offering it.
My sister-in-law is on vodaphone too, so that makes it a pretty appealing option.
Why oh why aren’t you allowing pre-orders? I don’t want to line up with a bunch of smelly nerds, I may catch something…oh wai
I would like to second the dispair over such low data caps. Even if you opt for a Browsing Pack these plans aren’t all the great by comparison. Having said that, I’m going with Telstra because coverage where I am is terrible on Optus/3 so I have to pay a premium for the network.
Have I got this right? Cap plans for the new iPhone are now available to existing Telstra customers?
can I buy a iphone 4 outright at t-life and get the sim when i am there?
Could be worse, you could all live at the top end of Tassie like I do, there is only one store opening at midnight, it’s 4 hours away, and I work until 11.30pm. Would have been nice if Apple had the pre-order like they did with the iPad.
Also Wondering if I can buy it anywhere outright as I have a plan already with Telstra, I’ve heard rumours that Telstra will only be releasing it on a plan, no outright sales??
Di, you’ll be able to buy the iPhone from Apple directly (from their on-line or retail stores) and use it on any network. You’d have to get your NextG SIM card replaced with a mico-SIM. Telstra have always replaced SIM cards free of charge for me in the past, I’m assuming this is also the case if you need a micro-SIM?
buyer be where.
This is great and all but I have just found out from Jessica in ADL of Telstra Chat that I can’t get a new phone and one of these great new Cap plan’s because I am still on the old billing system (10 digit A/C number) and I would have to can my current service and get a new number and a new account just to get a new phone and cap plan and that just sucks!!! after 2 years you would have throught they would have everyone on the new Siebel billing system (13 digit A/C number) by now or they could offer something better then signing up a new account just to get a phone, the other advise they gave me was wait 8 months for the transfer to happen and then upgrade. come on surely there must be something Telstra can do. I bet there is a lot of people that get caught out on Friday when they go to get there new iPhone
Ross,
I checked this blog yesterday for pricing and note that today, another pricing table has been added, upping the data limits across all plans. The $79 plan at 1GB per month is now really attractive, and I’m considering bringing my 2 x iPhones across from Optus.
I would need further details of terms and conditions, but unfortunately, the full plan details don’t seem to be on Telstra’s website yet – Optus has posted full plan details on theirs.
The two things I need to consider are:
1) Is tethering offerd on these plans, and if so, what is the cost and is the data downloaded part of the monthly allowance?
2) What is the cost of voicemail deposit and retrieval?
The ridiculous data restrictions and exorbitant prices from Telstra not only on their mobile phones but their mobile broadband is truly criminal.
How can a telco company expect anybody to do business here or around the world with these limits.
As someone pointed out earlier in this thread, a phone is so rarely used as that anymore, it is a tool to communicate as you would if you are in the office, via email or for social networking outside of work hours.
A recent trip, for work, using my phone primarily for emails, cost me $1750 dollars in the first month, and that is after paying 80 odd dollars for an extra 25 meg of data, prompting me to turn off my iPhone, buy another phone, grab a 29euro prepaid sim with unlimited sms, 500 free minutes and UNLIMITED DATA.
Unfortunately though, for people that travel the country, you have no choice to use telstra because of their coverage.
thanks Steffen, appreciate the info. had a bit of an issue with Telstra, but looks like they are going to let me get a new one through them. would have preferred to preorder and get one delivered tomorrow morning
Brendan O’Keefe [TEX Customer Engagement Manager] says:
27 Jul 2010 at 3:21 pm
Outright purchase option
iPhone 4 will be available to purchase outright for existing Telstra customers:
RRP $864 — 16GB
RRP $1008 — 32GB
Hi Brendan, I don’t think the above information has gone down to some T-Life shops. I was just at the Melbourne Airport T-Life and the lady there insists that even existing Telstra customers cannot buy outright. They will need to sign up a new plan to get the phone.
Now I hope the Melbourne city T-Life will be aware of this as I’m heading there at midnight to buy the iPhone outright.
Do we have to have a plan on the iphone like i know we can buy it off apple store but i want it from telstra. So i was wondering can we actually buy it and how much for, also where can i get a micro sim card?
Well the big day is here, our telstra shop at the top end of tassie didn’t open until 9am . . I was standing there, first one in the shop, signed up for my new phone . . .only problem is – they haven’t actually got any yet. they’ll give me a call when they do
Hi, will Telstra enable the iPhone 4 for video calling given the front facing camera is on the device? I know that FaceTime is nice to have, but as I understand for now this is over WiFi (potentially will be opened to over 3G network) and we have enjoyed Video calling with Telstra’s NextG for more than 3 years now on supported handsets.
Or does it work with video calling on Telstra’s NextG network out of the box already?
Hi,
I had a sales representative calling me last month about the new plans and offered to get me re-contracted on so I can benefit from this new plan (my bills were quite big – over $300 a month – so I accepted the offer)
I now have 2 questions over this:
1. since I am staying with Telstra, why would Telstra still charge me for the cancellation fee for the previous contract?
2. At this time the launch date of the iPhone 4 wasn’t known. Had I known at this time that the iPhone 4 would be out a month later, I would have waited so I could get a new contract with Telstra and receive a new phone for $199. Now I am re-contracted for 24 months, I still have to pay the cancellation fee ($30 per month) and I am stuck with my old iPhone 3GS.
Is there anyway Telstra could turn this around since it was only a month ago so I can upgrade to the iPhone4?
Thank you
Geraldine
ge.
I would be selling your 3gs to a family member (still under your contract) and then get them to pay the $30 per month.
That’s an idea but currently no one to sell it to unfortunately! Is there a market for this maybe? Can I transfer my contract to someone not from my family?
Hi there
I wanted to upgrade to a new phone a Iphone or just any new phone as my old phone is nearly dead and I have been told I can but I have to change my phone number as I don’t have a 13 digit account number and I will have to wait to upgrade till my account has been migrated over to the new account system, I can’t change my number and I am happy with my 49 dollar cap this sucks does anyone have anyway around this?
Heather – Call Telstra and ask them to migrate your account to the system that carries the plan you want. This is probably the new system for consumer plans (13 digits) and the old system (10 digits) for the business cap plans.
If they are telling you that you can’t keep your number, they are in violation of the Porting laws.
Unless you are bundling other services for a discount (home phone, broadband etc) this should be a no brainer. It should take only a few days.
The alternative is to port your number to a prepaid deal on another carrier, then port back in. Of course, once you are on another carrier, you are no longer a Telstra customer, and you can start squeezing them to win some concessions.
There is a backlog in the system migrations at the moment, so you’ll have to coax it through. (read: shout at a few people with poor english skills over a long distance trunk line).
Your best bet is to go into the Flagship T-Life store in your closest capital city (Telstra owned, not a franchise) around LunchTime, and make noise about how much trouble you are having while the store is full of potential customers.
See:
http://forums.whirlpool.net.au/forum-replies-archive.cfm/1494791.html
I have the same problem when I wanted to order a Telstra T Box. I suggested that they charge me the full price on my next bill and when my 13 digit account number became available they would organise a credit and then continue to pay monthly. I just have to pay the $299 upfront and wait for a credit to my account. Make sure they put plenty of notes to reflect the deal.
excuse me i went for the iphone 4 about a week ago and asked to get the iphone 4 on the $49 cap plan and they told me they have ran out of the iphone 4 and dont know when they would get anymore in.
Do you have any idea when they will get more in or if they have any in now??
Thanks!
hi, would the iphone4 be blue tick possible, i live in a rural area
Hi I am ordering an iPhone outright, am I able to buy/ convert my current Telstra sim to the sim that we need for the iPhone?