Telstra Corporation Ltd (ASX: TLS) won't stand by as Optus develops its 5G network. Australia's largest telecommunications company is expected to display progress with its own 5G technology later this week, and to offer next generation mobile internet by next year.
Many were surprised last Friday, when Optus announced that 5G mobile internet will be available in metropolitan areas by 2019. Optus attempted to pre-empt competition, in anticipation of what Telstra is going to reveal in a media gathering scheduled for next Wednesday.
Telstra must rise to the challenge, or competitors will erode its market share. To fund the costly upgrade of its mobile network the company would enjoy some more operating cash flow. In this respect, the $273 million impairment on Telstra's holding of video technology provider Ooyala announced on Friday is not encouraging.
This week will reveal whether investors consider the 5G race more of an opportunity than a threat.
