Telstra's BigPond has launched a wireless broadband internet service using its existing CDMA mobile phone network. However, critics are already panning the service as too expensive and underpowered.

The new BigPond Wireless Broadband service offers both desktop modem and mobile laptop card versions and provides download speeds of up to 256kbps or 512kbps in metropolitan Sydney and selected areas of other cities and regional centres, depending on the chosen plan. The laptop version automatically switches to Internet download speeds of 80-100 kbps when outside a broadband coverage zone, provided the user is within Telstra's CDMA coverage area.

BigPond Managing Director, Justin Milne said Australia has moved from being a broadband laggard to one of the fastest growing users of broadband services. Milne said BigPond will roll out the broadband service across Australia in coming months, by installing 3G mobile EV-DO blades in the carrier's CDMA phone towers. Users outside the EV-DO coverage areas will have to put up with the non-broadband speeds of the 1XRTT network.

Critics of the new BigPond wireless broadband services point out that users will have to pay hefty usage costs compared to the services offered by competitors such as Unwired and iBurst.

The desktop modem version of BigPond Wireless Broadband starts at $34.95 a month for 256/64 kbps and 200 MB download limit, with the premium 512/64 kbps and 1 GB service costing $59.95. Excess usage fees are 15c per MB. Thus, a desktop user with 2 GB of download usage per month would find themselves saddled with a monthly bill of $209.95. In comparison, Unwired, which currently only covers Sydney, charges just $54.95 for its 512/128 kbps service with 2G of downloads - about one quarter the price. Unwired also offers a premium service, not in BigPond's wireless kit bag, of 1024/256 kbps with 12 GB of downloads for just $119.95 a month.

Unwired CEO David Spence said yesterday that the new BigPond wireless broadband service does not have sufficient capacity and speed and could not match Unwired for price. "The BigPond product was developed on a mobile phone network which has been enhanced for data," he said. "There is a huge cost differential for the average 256 kbps user - about five times. It is true that they do have coverage but we'll fix that with the help of $37 million (referring to an announced investment in Unwired by Intel)."

The cost comparisons between the laptop mobile version of BigPond's wireless broadband service and the various iBurst mobile broadband services on offer are equally unfavourable for BigPond.

BigPond’s mobile broadband plans start at $69.95 per month for 256/64 with 200 MB download going up to $129.95 per month for a 512/64 kbps with 1 GB download. Excess downloads cost a whopping 30c per MB, so a 2 GB user on the premium service would pay a prohibitive $429.95 a month. By comparison, an iBurst plan offered by Chilli Internet Solutions gives users a far superior speed of 1024/345 kbps with 3 GB downloads for just $129.95 or 10 GB downloads for $199.95. What's more iBurst mobile broadband coverage rivals BigPond in Sydney and is currently more ubiquitous than BigPond in Melbourne, Brisbane, the Goldcoast and Canberra.

There is no doubt that BigPond, backed by Telstra's marketing muscle and mobile infrastructure will succeed in roping in quite a few wireless broadband customers. However, once customers start receiving the mammoth BigPond bills, many will start looking for alternatives. If Unwired or an iBurst provider happens to be in their area, it will be bye bye BigPond wireless broadband.