Telstra delays 3G shutdown after ACCC snub over triple-0 fears

Australia’s biggest telco will delay the closure of its 3G network to ensure people — mainly in rural areas — have enough time to upgrade their handsets for emergencies.

Telstra chief executive Vicki Brady says ‘we have to make sure everyone is ready to make this transition together’.

Telstra has delayed the closure of its 3G network by two months amid fears that hundreds of thousands of Australians might not be able to call triple-0 on their older handsets or accept payments on EFTPOS terminals.

The decision comes after The Australian revealed the competition watchdog refused a request from Telstra, Optus and TPG to use its product recall power to help alert people that their phones might be useless in an emergency when the 3G network is switched off.

Telstra will extend the shutdown from June 30 to August 31. Chief executive Vicki Brady said this would give “people more time to upgrade their devices” and to ensure customers – mainly in rural and regional areas – could continue to contact triple-0 and conduct business as usual.

“Connectivity is becoming more and more important to the way we all live and work, and we are excited to help all Australians transition to 4G and 5G mobile networks, which are faster, more reliable, and more resilient,” Ms Brady said.

“But we have to make sure everyone is ready to make this transition together, and we know some of our customers are still working through the steps they need to take to upgrade their devices. That’s why we’ve decided to provide more time and further support.”

More than 400,000 handsets are expected to be affected, including some older 4G phones and grey market imports – which aren’t approved by the telcos. TPG began switching its 3G network off last December. Optus is expected to shut down its network in September.

The telcos argued that the affected devices were likely to exacerbate an injury or worsen someone’s health condition if they could not use their phone to call an ambulance, fire service or police.

More Australians are also buying mobile phones from retailers other than the mobile carriers, making it difficult for the telcos to alert all affected customers. They hoped the ACCC could make the process easier by hosting the types of phones that switchover would render useless on its website.

But the Australian Competition and Consumer Commission rejected the telcos’ pleas because the 3G shutdown technically sits outside its recall powers, which are normally activated if a product is dangerous – a move that may delay the switch over from 3G to 4G.

“The affected mobile handsets may not be able to be used for emergency calls in the event of an injury, but they are not the cause of the injury,” an ACCC spokeswoman said last month.

The ACCC, chaired by Gina Cass-Gottlieb, refused to help telcos alert customers that their older handsets might not be able to contact emergency services when 3G is switched off. Picture: Aaron Francis

The 3G shutdown affects mainly people living in regional areas where 4G coverage is limited

“If your device is 3G only, if it does not support voice over 4G (VoLTE), or if it is 4G enabled but hardwired to use 3G for emergency calls, then you need to upgrade before the 3G closure to stay connected,” Ms Brady said.

“This will also affect medical devices and other hardware connected to our 3G network, from EFTPOS terminals to farm machinery.”

Telstra began notifying its customers via text message last month, informing them their device may be affected. They can reply ‘3’ back to the message and Telstra can then determine if their phone needs to be upgraded.

Ms Brady said the telco was now stepping up its efforts to urge customers to upgrade their older handsets.

“Soon, customers yet to upgrade will hear a short message on impacted mobiles when you make an outgoing call, as a reminder that you need to act. This prerecorded message will only be removed once you’ve upgraded,” she said.

“While there is now a little more time, please don’t delay. Our 3G network is closing soon, and it is important you act now. If you’re still using an impacted device after 31 August, you won’t be able to call triple-0 for emergency help.”

Ms Brady said the 3G shutdown would enable the telco to free up more spectrum to increase coverage in regional areas, allowing customers to benefit from a more reliable network.

“Moving customers onto 4G and 5G services will mean a big leap forward for mobile connectivity across Australia. It will allow us to repurpose the 3G spectrum so we can extend our 5G network and create a more reliable network and a better experience for our customers.

“We have been making good progress on modernising our 3G network sites with new 4G and 5G antennas and radio hardware, with 99 per cent of upgrades now complete. We made an absolute commitment to expand our 4G coverage to be equivalent to existing 3G coverage across the country before we close the 3G network, and we are on track to meet that.

“After upgrades are complete, we will continue to test and optimise the network to make sure all our customers get the best experience possible.”

Ms Brady also urged customers to contact their handset’s supplier or manufacturer for more information about whether it needed to be upgraded.

“We are always a phone call away if you need further support or are facing challenging financial or other circumstances. We’ll work with you to find the best solution”.

Communications Minister Michelle Rowland praised Telstra’s decision, saying it would managing the 3G changeover in a “safer” way.

“The Government will keep working with industry through the Working Group we helped establish to ensure impacted Australians understand the steps they need to take before the switchover occurs,” Ms Rowland said.

“We appreciate the cooperative and constructive engagement from the carriers and the industry association to date. The latest reports from industry suggest there are approximately 400,000 4G-enabled devices that default to 3G for emergency calls. After the switchover, these devices will appear to operate as normal and Australians may only realise there is an issue with the device when they can least afford it.”

But Opposition communication spokesman David Coleman said Telstra’s decision to delay turning off 3G “underscores Minister Rowland’s hapless handling of the key issue that some 4G phones will not work after 3G shutdown”.

“The minister claimed that she was not aware of the issue until March. Strange, given that her office received information on this in June last year, and the peak industry body AMTA told the whole world when it published information on this exact topic in November,” Mr Coleman said.

“The minister only set up her ‘Working Group’ in March. If the Minister had acted professionally and expeditiously, there would have been ample time to deal with this issue prior to 3G shutdown.”