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The CEO of Australia’s mobile operator Vodafone, admitted the company’s network was unprepared the handle the increased demand and use of powerful smartphones. According to Bill Morrow, Vodafone Australia, there was no investment in place for network upgrades, which saw the system collapse back in 2010.

Morrow pinpoints the network’s crash as the prime cause of the company’s present financial woes. The lack of any investment, and foresight, has cost the mobile operator millions in losses.

Six months into his new position, Vodafone Australia is looking to regain consumer trust through a multi-phase approach in upgrading the company’s networks. Morrow explained that the company is slowly trying to turn things around, despite lagging behind other operators like Optus and Telstra both of which have already moved ahead by offering 4G networks.

The rise of smartphones have posed challenges to telecom operators across the globe. The powerful, handheld computing devices rely on bandwidth-intensive mobile applications, which in turn, has added significant traffic load to backhaul networks.

Bill Morrow remains optimistic about Vodafone’s future. Its merger with another operator, 3, presents other opportunities for high-speed services including LTE, and not so far ahead 4G. He also said that the national broadband project was a great solution to help meet the growing demand in business and government sectors.

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