1. Telstra in confidence AMTA 2003 Congress Carriers Roundtable Ms Lynda O’Grady, AMTA Board Member Chief of Products Telstra Technology, Innovation & Products Ms Lynda O’Grady, AMTA Board Member Chief of Products Telstra Technology, Innovation & Products Key direction for the mobile phone industry

2. Key issues facing the mobile industry Our customers Responsiveness to their needs Consumer Education Customer friendly distribution The community Social Responsibility Community Involvement Australia Economic rationality Industry Responsibility – “guided not mandated by regulators” Our customers Responsiveness to their needs Consumer Education Customer friendly distribution The community Social Responsibility Community Involvement Australia Economic rationality Industry Responsibility – “guided not mandated by regulators” Telstra in confidence

3. Our customers "I have always wished that my computer would be as easy to use as my telephone. My wish has come true. I no longer know how to use my telephone." Bjarne Stroustrup, computer science professor, designer of C++ programming language (1950- ) "I have always wished that my computer would be as easy to use as my telephone. My wish has come true. I no longer know how to use my telephone." Bjarne Stroustrup, computer science professor, designer of C++ programming language (1950- ) Responsiveness to their needs Telstra in confidence

4. Our customers Technology, Device, Applications & Content Alignment Telstra in confidence

5. Our customers Telstra in confidence Technology, Device, Applications & Content Alignment SMS CDMA GSM

6. Our customers Consumer Loop Corp Telstra in confidence Technology, Device, Applications & Content Alignment SMS CDMA GSM Pictures Music Sport Games Internet MCommerce Remote Access Communications - emails - instant messaging

7. Our customers Consumer Loop Corp Telstra in confidence Technology, Device, Applications & Content Alignment SMS CDMA GSM Pictures Music Sport Games Internet MCommerce Remote Access Communications - emails - instant messaging MMS h/s Mp3 phones Java/BREW/W AP Blackberry/P DAs Smartphone s Browser phones Vending machines & parking meters PC Tablets PCs

8. MMS h/s Mp3 phones Java/BREW/W AP Blackberry/P DAs Smartphone s Browser phones Vending machines & parking meters PC Tablets PCs Consumer Loop Corp Our customers Telstra in confidence Technology, Device, Applications & Content Alignment SMS Packet Data (GPRS/IXRTT) MMS Circuit Data CDMA GSM Pictures Music Sport Games Internet MCommerce Remote Access Communications - emails - instant messaging Mobile Location

9. Our customers Source: Analyst consensus 0 10 20 30 40 50 Australia Germany Ireland Japan Philippines UK % of revenue 2000200120022003 Consumer education underpins revenue from data services – the beginning of a journey Telstra in confidence

10. Our customers Focus on coverage and mix – online and retail Innovative solutions –New stores formats and concepts –Extended coverage through partnerships (Harvey Norman, Tandy, Crazy Johns etc) Changing role from merchants to educators Focus on coverage and mix – online and retail Innovative solutions –New stores formats and concepts –Extended coverage through partnerships (Harvey Norman, Tandy, Crazy Johns etc) Changing role from merchants to educators Telstra in confidence Customer friendly distribution - the key to increasing usage

11. The community Social responsibility –Telstra LIFE program –Launch of two new educational tools - “Mobile network - how Australia communicates” Community involvement –Greater community involvement in mobile network deployment with the launch of a new tool “Mobile and Health” Social responsibility –Telstra LIFE program –Launch of two new educational tools - “Mobile network - how Australia communicates” Community involvement –Greater community involvement in mobile network deployment with the launch of a new tool “Mobile and Health” Telstra in confidence

12. Australia Telstra in confidence Economic rationality - future technology trends 2G2.5G3G Source: Telstra 1xRTT CDMA2000 1xEV-DO CDMA2000 1xEV-DV EDGE W-CDMA GPRS GSM TDMA CDMA-One Evolution of mobile systems 2G-3G

13. Telstra in confidence Speed and coverage could together drive greater overall mobile data uptake and customer acquisition Web browsing (1 page view) Online shopping (to get to for 1 page view) Polyphonic ringtones Real time 2004/200 5 Real time 480 KB/min N/A Video telephony Download video (sport, trailers) Field workforce automation Synchronised PIM (eg. Calendar) MMS with picture (eg. news, entertainment) Enterprise dispatch Basic text (email) 1x/EVD O WCDM A 1xRTTEDGEGPRS DoCoMo proved - it’s not about speed! [9.6 kb/s] [85% data penetration & 25% ARPU] High Low Projected Demand* Selected cellular data applications 1074046 3311 1.5 2 2 2 3 0.5 6 1.5 3 6 6 6 6 66 6 2 2 32 9 9 14 109 14 8 9 21 22 Likely user receiving experiences (seconds) * Based on recent market analysis (Telstra, Nortel)

14. Evolution of mobile systems 2G-3G 2G2.5G3G Rational technology investment - evolution not revolution Telstra in confidence 1xRTT CDMA2000 1xEV-DO CDMA2000 1xEV-DV EDGE W-CDMA GPRS GSM TDMA CDMA-One Source: Telstra

15. Industry responsibility Key policy requirements for a competitive industry Participative approach by regulators Evidence-based, rather than media-led, approach to regulation Key policy requirements for a competitive industry Participative approach by regulators Evidence-based, rather than media-led, approach to regulation Telstra in confidence “Guided not mandated by regulators”

16. Our challenge… As Members of this industry ‘WE’ are challenged with moderating the demands of mobile consumers to whom we owe reliability, education and accessibility the community concerned with collateral social and health issues the technology push – ex network and handset vendors As Members of this industry ‘WE’ are challenged with moderating the demands of mobile consumers to whom we owe reliability, education and accessibility the community concerned with collateral social and health issues the technology push – ex network and handset vendors … and the nation – which cannot afford premature or over- investment in wireless infrastructure It is OUR challenge… or we face unfavourable social and economic consequences … and the nation – which cannot afford premature or over- investment in wireless infrastructure It is OUR challenge… or we face unfavourable social and economic consequences Telstra in confidence