Deena Shiff, Group Managing Director

Telstra Business

Deena Shiff, Group Managing Director

Telstra Business

Australian Telecommunication

Industry Overview

Australian Telecommunication

Industry Overview

Australia – a snap shot Australia – a snap shot

• 6th largest land mass

• 9th lowest population density

• This is equal to about the area of continental

USA with a population not much larger than

that of New York State.

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Australian telecoms market has been strongAustralian telecoms market has been strong

• Australian growth

highly leveraged

to China and

outperforms most

of G-20

• Telecoms industry

growth remained

stable during GFC

Telecoms industry growth

-2.00%

0.00%

2.00%

4.00%

6.00%

FY 06 FY 07 FY 08 FY 09E

Australia Europe U.S.

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High data adoption rates in AustraliaHigh data adoption rates in Australia

• 61%* penetration of fixed broadband

• 111%* handheld mobile

• Total Australia Market Mobile Voice Revenue

growth 2010 (over 2009) = +0.8%^

• Total Australia Market Mobile Data Revenue

growth 2010 (over 2009) = +17.7%^

*Source: JPMorgan estimates Asia Pacific Equity Research Sept 09^Ovum Mobile voice and data forecast pack: 2009–14 Dec 09

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Australian Industry StructureAustralian Industry Structure

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Mobiles Market share

Telstra 41.7%

Optus 31.4%

Vodafone

Hutchison

26.9%

Broadband Market share

Telstra 45%

Optus 19%

iiNet 8%

AAPT 2%

Other 26%

Fixed Market share

Telstra 70%

Optus 15.4%

AAPT/Powertel 6.3%

iiNet 2.4%

Primus 1.7%

SP Telemedia 2.8%

Macquarie Telecom 1.4%

Total revenue market share FY09

Source: JPMorgan estimates Asia Pacific Equity Research Sept 09

FY09 revenue of A$25.5 billion

Ranked 11th - global Telco based on market capitalisation of approx $40b

1.4 million shareholders

Australian brand

FY09 revenue growth of 2.7%

Telstra – An Australian iconTelstra – An Australian icon

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World Class Networks & Leading BrandsWorld Class Networks & Leading Brands

..and in China

Cable Extreme

Next GTM network provides >3x larger than

nearest competitor

Provides coverage to 99% of the population

World’s fastest mobile broadband network

providing data speeds up to 42 Mbps*

Telstra has a range of leading brands in

Australia and in China

Fixed, Wireless, Media, Directories

*Actual speeds vary due to congestion, distance from cell, local conditions, hardware, software and other factors. 7

Telstra subscriber statisticsTelstra subscriber statistics

Product 31 December 2009

(‘000)

Retail basic access lines 7,545

Total basic access lines 8,808

Fixed retail broadband 2,244

Total Fixed BB 3,970

Total Wireless broadband 1,325

Total Mobile (inc WBB) 10,387

3G subscribers 7,249

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Entertainment Lifestyle News & Sport Classifieds

Telstra Media’s portfolio includes a diverse and

unique mix of consumer content

Telstra Media’s portfolio includes a diverse and

unique mix of consumer content

9

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..accessible across a growing range of platforms

T-Hub (launching soon)

MobileOnline

Telstra Business - Key FactsTelstra Business - Key Facts

FY08/09 Review:– 738k customers (relationship with 70% of addressable market,

share varies by product)

– Revenue A$3,799m (yoy growth 4.7%)

– EBIT margin 72.2%

– Contribution to Telstra revenue ~ 15%

– 3G network penetration grew from 3% in 2006 to > 80% today

– T-Suite launched April 09 - first integrated SaaS portal in

Australia

– In FY06/07 only half of incremental growth came from Fixed BB,

Wireless BB and IP access products. In FY08/09 this ratio grew to

70% of incremental revenue growth

Created in 2006 out of a need to differentiate service and offerings to SMEs

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Telstra Business - OfferingsTelstra Business - Offerings

Network/Web Services

Fixed Voice Mobile Voice Fixed BB Wireless BB

Data & IP SaaS

PSTN, ISDN

CPE

ATM, Frame Relay, Leased lines IP Access (WAN, MAN, Ethernet)

Range of value added services including PC backup, security, hosting etc

T-Suite offering

Increasing range of applications

Voice, SMS, MMS, Voicemail, MyConnect Voice2Text, Email

BigPond (Cable, ADSL, Satellite)

Telstra Business Broadband

BigPond Wireless

Telstra Mobile Broadband

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Deena Shiff, Group Managing Director

Telstra Business

Deena Shiff, Group Managing Director

Telstra Business

Telstra OverviewTelstra Overview