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Judge Judges Optus Better Value Than Telstra Print E-mail
Written by Adam Gosling   
Thursday, 17 May 2007
It was a nasty backfire for the increasingly litigious and 'trash talking' Telstra management team in the Federal Court when the Judge decided Optus was right - it does offer better value. "It is undeniable," he said.

Telstra was trying to get for an injunction against Optus advertisements that compared its $49 a month capped mobile plan to Telstra's $40 a month contract plan. It didn't work though, Justice Gray denied the injunction says: "It is undeniable that a consumer would get better value under the Optus $49 Cap plan," Justice Gray said.

"Telstra cannot show to the contrary. Optus is perfectly entitled to compare its $49 Cap plan with Telstra's $40 phone plan,"the judge said according to newspaper reports.

It's hard to see that there was any dispute. According to a comparison provided by Optus: The Telstra $40 phone plan includes just $35 worth of voice calls and text per month, plus $5 of included data/GPRS. The Call rate per 30 seconds is 38c and the flagfall is 27c. National text is charged at 25c (unless Text Option is selected). Optus calculated that this equals up to 19, 2 minute voice calls between 8am and 7pm to any home or mobile number in Australia (more if you choose the My Hour option and you call during your selected hour).

Telstra will give you a Motorola RAZRMAXX V6 valued at $729 rrp+ to make your calls.

Meanwhile, the Optus $49 Cap Plan includes up to $300 worth of voice calls and text per month, which equals 153 2 minute voice calls any time between 8am and 7pm to any home or mobile number in Australia. The call rate would be 40c per 30 sec with a flagfall of 35c. National text charge is 25c. Optus will give you a Nokia N73 valued at $809 rrp to make your calls.

(Umm, are we missing something? The Optus deal is better by a factor of 10! Telstra had the cheek to waste The court's time with a request for an injunction. Justice Gray should have found the Telstra legal team in contempt of court - IMHO).

Meanwhile, The Australian also reports that Telstra and Fox Sports were able to settle their differences outside the courts with the two sides agreeing that 1 minute 45 seconds was a reasonable "fair use" of an NRL match. If that's on a mobile phone though, "fair" is only 1 minute and 30 seconds!

Telstra initially issued court proceedings against Premier Media Group, which owns Fox Sports trying to limit coverage to 45 second per match and a total of 90 seconds for each round. The court refused to grant Telstra an injunction - again.

Telstra BigPond chief executive, Justin Milne, said the out of court settlement was good because it found a balance between the two orgnaisations' commercial needs and those of the customers trying to find out what happened at the footy. Ohand it also avoided expensive, ongoing legal action.

Telstra has paid a total of A$170 million for digital rights and sponsorships of the NRL, the AFL and V8 Supercars.

BTW: You really need to check the network operators and do your own comparison, not just trust me for the details. You can however, trust Justice Gray who said the Telstra plan is just not as good value as the Optus one.

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