Telecom is trying to win back mobile customers from Vodafone which has snared 63 per cent of the $2.1 billion market since starting in 1998.

Telstra, Australia's largest telephone company, last year said it would close its CDMA network by 2008 in favour of GSM.

Its not really surprising that they want to change to GSM, what is surprising is the timing of it. What they COULD have done way back when they were rolling out 3G is switched over to UMTS, made an alliance with Vodafone (Telecom would put towers here and Vodafone would put towers there), and maintained their 2.5G network while people were buying new phones. Not only would this have tied in nicely with their long-term plans, but would have saved them a ton of money and created a valuable alliance. Not to mention they would be on UMTS, and therefore have access to all the phones and devices that the cool kids are switching to Vodafone for.

Although, then they would have the problem of people switching SIM cards to join the better network, and not being able to charge an arm and a leg when people went overseas, AND loosing money on parallel imports.

Jed: Its not really surprising that they want to change to GSM, what is surprising is the timing of it.

Jed: and maintained their 2.5G network