1. 1 October 02 Telstra in confidence Seasonal factors and network fault performance In general, fault levels and fault rates vary in an annual seasonal way, namely: –Up during the "wet seasons" (December and March quarters) and –Down during the "dry seasons" (June and September quarters). However, if there is a large number of natural disasters in a particular region at a particular time period, the fault numbers and fault rates are expected to be higher than normal. The ACA has also acknowledged seasonal effects on fault levels in its Telecommunications Performance Report, 1997-98. The report states: –‘It was noted that the data for country areas shows seasonal effects, that is, the March quarter is down 4.6 per cent relative to other quarters. Causal reasons for this may be the fact that the three months to March, in country areas of Australia, are more likely to be subject to weather extremes. A similar pattern of decline is also apparent in the proportion of faults cleared within two working days of notification.’ Source: p. 48 ACA Telecommunications Report 1997-98. Telstra understands the ACA formed its conclusion based on a detailed analysis of seven years of data undertaken by the Communications Research Unit in 1998. Further details about this are available from the ACA. The ACA has acknowledged seasonality and variability of faults performance

2. 2 October 02 Telstra in confidence Seasonal factors and network fault performance A recent example of the impact of seasonal factors is the large number of natural disasters which took place between January 2001 and February 2002 across Australia, costing the nation over $1.5 billion. The disasters included: bushfires, floods, storms, etc. with the majority of disasters occurring in the State of NSW. The most damaging disaster was a flood in Northern NSW in March 2001. Source: "Natural Disasters Cost $1.5 Billion", The Age, 30 May 2002. The magnitude of wet weather influence on fault rates can range from nothing to very significant, depending on the level of the damaging force and the duration of the wet weather in the areas concerned (eg. Light rains versus floods, downpours, storms, cyclones etc) The impact of seasonal factors on the network is also evidenced by the queues to report faults with Telstra’s service difficulties call centre. There were significant extreme weather conditions in 2001 and 2002

3. 3 October 02 Telstra in confidence Seasonal factors and network fault performance As shown in the chart below, over the last ten years there are a significantly lower number of calls answered within 15 seconds in each March quarter compared to each September quarter. Source: Telstra Corporation Quality of Service Report – June 2002 quarter Access to service difficulties queue

4. 4 October 02 Telstra in confidence CSG Fault Repair - NSW/ACT Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02 No. of declared CSG Exemptions : 8No. of declared CSG Exemptions : 13 Initial Service Jobs (SJ) in declared areas : 9726 Initial Service Jobs (SJ) in declared areas : 31,780 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

5. 5 October 02 Telstra in confidence CSG Fault Repair - NT Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02No. of declared CSG Exemptions : 1 Initial Service Jobs (SJ) in declared areas : 100 Initial Service Jobs (SJ) in declared areas : 10 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

6. 6 October 02 Telstra in confidence CSG Fault Repair - Qld Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02 No. of declared CSG Exemptions : 0No. of declared CSG Exemptions : 6 Initial Service Jobs (SJ) in declared areas : 0 Initial Service Jobs (SJ) in declared areas : 3369 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

7. 7 October 02 Telstra in confidence CSG Fault Repair - SA Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02No. of declared CSG Exemptions : 0 Initial Service Jobs (SJ) in declared areas : 0 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

8. 8 October 02 Telstra in confidence CSG Fault Repair - Tas Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02No. of declared CSG Exemptions : 0 Initial Service Jobs (SJ) in declared areas : 0 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

9. 9 October 02 Telstra in confidence CSG Fault Repair - Vic Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02 No. of declared CSG Exemptions : 0No. of declared CSG Exemptions : 2 Initial Service Jobs (SJ) in declared areas : 0 Initial Service Jobs (SJ) in declared areas : 901 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions

10. 10 October 02 Telstra in confidence CSG Fault Repair - WA Rural Important Notes: Only CSG Exemptions in Regional Service Division shown FY2000/01FY2001/02No. of declared CSG Exemptions : 1 Initial Service Jobs (SJ) in declared areas : 411 Initial Service Jobs (SJ) in declared areas : 526 Rural, Met Rural, Missed Rural, % Met 2000/2001 CSG Exemptions 2001/2002 CSG Exemptions