TELSTRA GROUP LIMITED — Interim / Quarterly Report 2004

Apr 20, 2004

21 April 2004

The Manager

Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra Corporation Limited 03/04 Third Quarter Market Update

In accordance with the listing rules, I attach an announcement for release to the market.

The CEO and CFO have pre-recorded their comments on the 3rd Quarter revenue performance. This commentary will be available on Telstra's Corporate Communications Centre and can be access via the following URL http://www.telstra.com.au/communications/calendar/calendarevent.cfm?ObjectID=4 43.

Yours sincerely

Tourla brak

Douglas Gration Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

Telstra Corporation Limited '03/04 Third Quarter Market Update

Mobiles and Internet drive domestic growth

Overview

Quarter ended 31 March 2004: reported total revenue, which includes asset sales, increased \$108 million or 2.1%¹ to \$5,130 million. Reported sales revenue increased 1.0% to \$5,014 million.

Underlying² total revenue increased \$49 million or 1.0% to \$5,061 million. Underlying² sales revenue increased by \$41 million or 0.8% to \$5,006 million. Growth occurred in mobiles, internet and directory services, offset by a reduction in Hong Kong CSL primarily due to foreign exchange translation.

Excluding revenue from external construction activity and the cable recovery and recycling project, underlying² domestic³ sales revenue increased \$133 million or 3.0% to \$4,635 million.

Nine months ended 31 March 2004: Total reported revenue of \$15,956 million decreased 2.7%, due mainly to the impact of revenue from the sale of commercial properties in the prior year. Reported sales revenue increased 0.3% to \$15,470 million.

Total underlying² revenue increased 0.1% to \$15,611 million. Underlying² sales revenue increased 0.2% to \$15,462 million.

Excluding revenue from external construction activity and the cable recovery and recycling project, underlying² domestic³ sales revenue increased \$309 million or 2.2% to \$14,337 million.

The following details the Telstra group revenue result for the quarter and nine months ended 31 March 2004.

Mobiles

Total Mobile revenues grew by 5.7% or \$50 million for the quarter and 6.1% or \$165 million for the nine months ended 31 March 2004.

• Mobile services revenue has increased 9.7% or \$75 million for the quarter and 7.3% or \$176 million, for the nine months, due to a range of factors including:
• Increases in mobile services in operation of 13.1% to 7.2 million attributable to the 23.1% $\bullet$ growth in prepaid services. Revenue growth from prepaid and postpaid subscriber increases, including the addition of 184,000 since December 2003.
• Revenue growth from increases in mobile services in operation is partially offset by a \$34 $\bullet$ million increase in loyalty bonuses provided to customers in the quarter.
• Revenues from short message service (SMS) increased 22.8% to \$106 million in the $\bullet$ quarter as a result of increases in the number of messages by 28.7% to 489 million. There were 1,399 million SMS messages sent over the nine month period, which represents an increase of 38.2% over the previous corresponding period.
• Increase in Mobile voice minutes for the third quarter of 20.6% including increases of 17.4% in postpaid voice minutes and a 65.1% increase in prepaid voice minutes.
• International roaming revenues increased 16% for the quarter with the recovery in International travel after the SARS outbreak and other world events.

Mobile handset revenue has decreased 24.0% or \$25 million for the quarter, while the reduction for the nine month period was 4.0% or \$11 million primarily due to the move to lower value prepaid handsets and higher volumes of subsidised handsets.

Adjusted Mobiles services revenue growth, after allowing for loyalty bonuses and including mobiles terminating revenue, was 10.0% for the quarter and 9.3% for the nine month period.

Internet and IP

Internet and IP increased \$54 million or 27.6% in the quarter and \$126 million or 21.5% in the nine month period.

This was achieved through the continued strong growth in consumer broadband subscribers of 113% to 617,000, and narrowband subscribers of 5.6% to 1,197,000. The accelerating growth in this product is attributable to increased internet usage, self install kits and successful broadband marketing campaigns. Growth on the nine month period has been impacted by rebates given to customers due to the e-mail outage in October 2003.

Telstra's IP solutions, including managed metropolitan and wide area network IP services, have also performed strongly growing \$8 million or 26.7% in the quarter and \$23 million or 26.7% in the nine month period. IP technology is becoming mainstream for corporate and government customers in Australia and this growth has been achieved in an extremely competitive market.

PSTN Products

PSTN products increased by 1.0% to \$6,015 million for the nine months, and was flat at \$1,698 million in the quarter ended 31 March 2004. Rebalancing initiatives across the PSTN product groups have increased access revenues, partly offset by reductions in calling revenues.

• Basic access revenues grew 2.2% for the quarter reflecting the impact of rebalancing. Basic access lines in service remain steady, lower by 30,000 to 10.43 million in the first nine months. Basic access revenues grew 3.0% or \$71 million to \$2,405 million over the nine month period.
• Local call revenue decreased 3.6 % for the quarter mainly due to a 3% reduction in the number of calls due to product substitution to mobiles, fixed to mobiles and the internet and call price reductions as a result of the rebalancing initiatives. Local call revenue decreased 2.7% in the nine month period.
• PSTN value added services reduced 12.7% for the quarter, partially due to the migration of Fixed line MessageBank® and Call Return (*10#)^TM customers to the free offering Telstra
  Home MessageBank® and Call Return (*10#)^TM customers to the free offering Telstra
  Home Messages 101^TM and 1# Feature Assistant million or 7.5% to \$196 million in the nine month period.
• National long distance revenue decreased 3.5% for the quarter due to the 6.6% reduction in volumes as a result of product substitution to mobiles, fixed to mobiles and the internet. National long distance decreased 1.6% for the nine month period.
• Fixed to mobile revenue grew \$23 million or 6.1% for the quarter with volumes increasing $\bullet$ 8.1% due to continued growth in the number of mobile services in the Australian market and substitution from fixed to fixed services. Fixed to mobile revenue continues to grow strongly with growth of \$78 million or 6.9% for the nine month period.
• International direct revenue has reduced 11.0% for the quarter attributable to the 10.7% decline in the number of call minutes due to customers migrating to other products such as e-mail, calling cards and mobiles. International direct revenue has reduced \$30 million or 12.8% for the nine month period.

Traditional Data

Traditional Data revenue decreased 3.1% and 3.2% for the quarter and nine month period respectively, due to product substitution to technologically advanced IP and DSL based product options. This decrease has been offset by growth in Frame Relay due to a tariff restructure which has stimulated the migration from the ISDN data product.

ISDN

ISDN remained flat for the quarter with a 4.2% increase in ISDN access lines due to the penetration into the SME and consumer markets. Growth in access fee and ISDN voice revenue is offset by reduction in ISDN data revenue as corporate customers have been migrating to more technologically advanced products such as Frame Relay and IP products. ISDN revenue decreased for the nine month period by 3.5% or \$25 million.

Advertising & Directories

Reported advertising and directories revenues, including revenue generated by Trading Post, increased 14.5% and 7.4% for the quarter and nine month period respectively. The Trading Post Group was acquired by Sensis Pty Ltd in March 2004. Trading Post revenues of \$8 million are excluded from the underlying² results.

Underlying² advertising and directories revenues increased \$23 million or 10.7% for the quarter and \$62 million or 6.6% for the nine months ended 31 March 2004. The higher revenue was attributable to strong growth in Yellow Pages® print and Yellow Pages® online including location and navigation online products.

Intercarrier Services

Intercarrier services revenue remained flat for the quarter and decreased 0.9% for the nine month period ended 31 March 2004, as a result of reduced volumes and lower PSTN terminating rates, which are consistent with the industry trend. In addition, a reduction for the quarter in wholesale transmission product revenue was due to competitive pricing pressures arising from excess supply. These reductions are offset by increased SMS interconnect revenues for the quarter due to higher volumes.

Inbound calling products

Inbound calling products revenue declined 2.5% for the quarter and 4.0% for the nine month period ended 31 March 2004 due to the impact of inbound number portability. These products have been adversely affected by competition in the past, but performance is being maintained as Telstra adopts a customer solution approach to retain and win back customers.

Solutions Management

Solutions Management revenues increased 3.5% for the quarter ended 31 March 2004, primarily due to increased revenue from new major contracts and growth in the managed wide area networks and hosting revenues. This growth is offset by the completion of major contracts during the first half of 2003 resulting in a decrease for the nine month period of 0.6%.

Hong Kong CSL

In local currency (HK\$), revenue reduced 8.9% for the quarter ended 31 March 2004, reflecting continuing strong price competition. For the nine month period revenues reduced 6.8%, representing the recent aggressive price competition with reductions in mobile services revenue,

Telstra Corporation Limited and controlled entities

the number of mobile services and average revenue per user. In Australian dollars, revenues reduced 31.3% or \$76 million in the quarter, with the impact of the exchange rates contributing approximately \$44 million to the revenue reduction. For the nine month period the exchange rate impact contributed approximately \$133 million to this year on year reduction while \$49 million of the reduction was due to aggressive competition and market conditions.

Telstra Clear

In local currency (NZ\$), revenue increased 7.3% for the quarter and 4.5% for the nine months ended 31 March 2004. Revenue growth has been achieved from solid retail growth offset by rate reductions in the wholesale international market. In Australian dollars, revenue increased 2.1% to \$144 million in the quarter and 3.1% to \$427 million for the nine month period.

Other Controlled Entities

Other controlled entities revenue increased \$4 million or 7.8% for the quarter ended 31 March 2004. For the nine month period other controlled entities revenue declined by 19.8%, primarily due to the prior year revenues from the customer sales and service centre, now being operated directly by Foxtel and the sale of Mobitel in the previous year.

Other Sales and Service

Revenue from other sales and service declined 2.7% for the quarter due to reductions in revenue from external construction and the cable recovery and recycling project, card services and information calls offset by increased Foxtel bundling revenue. For the nine month period, other sales and service revenue declined by 14.6%, which includes a prior period accounting adjustment in the first half of 2003.

Other Revenue

Other revenue grew 17.0% for the quarter driven by increased government receipts. Other revenue for the nine month period decreased 5.7% to \$149 million which includes a reduction in lease rent received for properties and vehicles.

Service

Telstra continues to provide high service levels across Australia as evident in the recent Australian Communications Authority report for the December 2003 quarter.

Outlook

• The company continues to focus on increasing margins with targeted cost growth below any revenue growth and absolute costs below those for the previous year. There is no change to previous quidance relating to cost reduction targets
• Core domestic operating capital expenditure is tracking below the levels for the same period last year, with quidance on expenditure remaining around \$2.9 billion.
• The company continues to generate strong free cash flow from capital expenditure and cost management programs.

Strategic Direction

Our objective remains to pursue balanced domestic growth driven by accelerating uptake of broadband products and improving mobiles share. We see customer ownership and excellent customer service as key to a continuing strong market share position and fundamental to protecting PSTN products and our strong cashflow.

Management remains committed to improving margins from a focus on our \$800 million cost reduction program, and combined with tight capital expenditure management, growing free cashflow.

Recent domestic acquisitions have met both our strategic fit and investment criteria. The strategy of managing cashflow growth and investing in acquisitions that meet our investment criteria, while remaining committed to our capital management program, is directed at improving overall returns to our shareholders.

For enquires on this announcement contact: John Stanhope Chief Financial Officer Telstra Corporation Limited

David Anderson Manager, Investor Relations Telstra Corporation Limited Phone: 61 3 9634 8014 Email: Investor.relations@team.telstra.com

Footnotes:

• All percentages relate to growth on prior corresponding period (PCP) $(1)$ $(2)$ Underlying numbers exclude revenues from the acquisition of Trading Post and asset sates.
• Domestic revenues exclude all offshore revenues. $(3)$
• Statistical data is represented in millions unless otherwise stated, and represents management's best estimates. $(4)$

Market Update
for three months ending 31 March 2004

	Q3 2004 Reported	Q3 2004 Underlying 2	Q3 2003 Reported	Q3 2003 Underlying 2	Reported Growth %	Underlying 2 Growth 96	Underlying 2 Miment
Smillions
Mobiles
Mobile services	850	850	775	775	9.7%	9.7%	75
Mobile handsets	79	79	104	104	(24.0%	(24.0%	(25)
Total Mobiles	929	929	879	879	5.7%	5.7%	50
Internet and IP solutions	250	250	196	196	27.6%	27.6%	54
PSTN products
Basic access	795	795	778	778	2.2%	2.2%	17
Local calls	376	370	384	384	(3.6%)	(3.6%)	(14)
PSTN value added services	62	62	71	71	(12.7%)	(12.7%	(9)
National long distance calls	278	278	288	288	(3.5%)	(3.5%)	(10)
Fixed to mobile	398	398	375	375	6.1%	6.1%	23
International direct	65	65	73	73	(11.0%	(11.0%	(8)
Total PSTN products	1,968	1,968	1,969	1,969	0.0%	0.0%	$\langle 1 \rangle$
Traditional Data	253	253	261	251	(3.1%	(3.1%	(8)
ISDN (Access and Catls)	227	227	227	227	0.0%	0.0%	o.
Advertising and Directories	245	237	214	214	14.5%	10.7%	23
Intercorrier services	280	280	280	280	0.0%	0.0%	ø
Inbound calling products	119	119	122	122	(2.5%	(2.5%)	(3)
Solutions management	117	117	113	113	3.5%	3.5%	4
Various Controlled Entities (excluding HK CSL & TClear)	55	55	51	51	7.8%	7.8%
HK CSL	167	167	243	243	(31.3%)	(31.3%)	(76)
Teistra Clear	144	144	141	141	2.1%	2.1%	$\overline{\mathbf{3}}$
Customer premises equipment	47	47	49	49	(4.1%	(4.1%	(2)
Payphones	36	36	38	38	(5.3%)	(5.3%)	(2)
Other sales & service	177	177	182	182	(2.7%	(2.7%	(5)
Sales revenue	5,014	5,006	4,965	4,965	1.0%	0.8%	41
Other revenue
Total revenue	116 5,13(	55 5,061	61 5,024	47 5,012	96.2% 2.1%	17.0% 1.0%	$\bf8$ 49
Domestic 3 Sales Revenue
Total Sales Revenue	5,014	5,006	4,965	4,965	1.0%	0.8%	41
Less Offshore Sales Revenue	353	353	412	412
Domestic 3 Sales Revenue	4,661	4,653	4,553	4,553	2.4%	2.2%	100
Less
NDC & Cable Recovery Revenues	18	18	51	51	(65.7%)	(65.7%)	(33)
Domestic 3 Sales Revenue (exci NDC/Cable Recovery)	4,643	4,635	4,502	4,502	3.1%	3.0%	133

Selected statistical data
Mobile voice telephone minutes	1,554	1,289	20.6%
Local calls (number of calls)	2,324	2,395	(3.0%)
National long distance minutes	2,128	2,278	(6.6%)
Fixed to mobile minutes	1,070	990	8.1%
International direct minutes	161	180	(10.7%)

Market Update
for nine months ending 31 March 2004

	March 2004 Reported	March 2004 Underlying 2	March 2003 Reported	March 2003 Underlying 2	Reported Growth %	Underlying 2 Growth %	Underlying 2 M/ment
\$ mittions
Mobiles
Mobile services	2,583	2,583	2,407	2,407	7.3%	7.3%	176
Mobile handsets Fotal Mobiles	265	265	276	276	(4.0%	(4.0%	(11) 165
internet and IP solutions	2,848 713	2,848 713	2,683 587	2,683 587	6.1% 21.5%	6.1% 21.5%	126
PSTIN
Basic access	2,465	2,465	2,334	2,334	3.0%	3.0%	71
Local calls	1,148	1,248	1,180	1,180	(2.7%)	(2.7%)	(32)
PSTN volue added services	196	196	212	212	(7.5%	(7.5%	(16)
National long distance calls	856	856	870	870	(1.6%	(1.6%)	(14)
Fixed to mobile	1,206	1,206	1,128	1,128	6.9%	6.9%	78
International direct	204	204	234	234	(12.8%	(12.8%	(30)
Total PSTN	6,015	6,015	5,958	5,958	1.0%	1.0%	57
Fraditional Data	762	762	787	787	(3.2%)	(3.2%)	(25)
SDN (Access and Calls) Advertising and Directories	698	698 1,006	723 944	723 944	(3.5% 7.4%	(3.5%) 6.6%	(25) 62
Intercarrier services	1,014 863	863	871	871	(0.9%	(0.9%	(8)
inbound calling products	357	357	372	372	(4.0%	(4.0%)	(15)
Solutions management	350	350	352	352	(0.6%	(0.6%	(2)
Various Controlled Entities (excluding HK CSL & TClear)	134	134	167	167	(19.8%	(19.8%	(33)
HK CSL	544	544	727	727	(25.2%	(25.2%	(183)
Telstra Clear	427	427	414	414	3.1%	3.1%	13
Customer premises equipment	138	138	149	149	(7.4%)	(7.4%)	(11)
Payphones Other sales & service	108 499	108 499	113 584	113 584	(4.4% (14.6%	(4.4% (14.6%	(S) (85)
Sales revenue	15,470	15,462	15,431	15,431	0.3%	0.2%	31
Other revenue Total revenue	486 15,956	149 15,61	960 16,390	158 15,589	(49.4% (2.7%	(5.7% 0.1%	(9) $\bf 22$
Domestic 3 Sales Revenue
Total Sales Revenue	15,470	15,462	16,391	15,431	0.3%	0.2%	31
Less Offshore Sales Revenue	1071	1071	1228	1228
Domestic a Sales Revenue	14,399	14,391	14,203	14,203	1.4%	1.3%	188
Less
NDC & Cable Recovery Revenues	54	54	175	175	(69.4%	(69.4%	(121)
Domestic 3 Sales Revenue (excl NDC/Cable Recovery)	14,345	14,337	14,028	14,028	2.39	2.2%	309
Selected statistical data*
Mobile voice telephone minutes		4,565		3,883		17.6%
Short Message Service (SMS) (number of messages)		1,399		1,012		38.2%
Mobile services in operation (thousands)		7,169		6,338		13.1%
Broadband subscribers (thousands)		617		290		112.8%
Narrowband subscribers (thousands)		1,197		1,134		5.6%
Total On-line subscribers (thousands)		1,814		1,424		27.4%
Basic access lines in service Local calls (number of calls)		10.43		10.48		(0.5%)
National long distance minutes		7,155 6,471		7,414 6,934		(3.5%) (6.7%)
Fixed to mobile minutes		3,169		2,945		7.6%
International direct minutes		499		567		(12.0%)
(SDN access (basic lines equivalents) (thousands)		1,250		1,199		4.2%
Foxtel SIOs (thousands)		867		816		6.3%

Telstra Corporation Limited (ABN 033 051 775 556)

Nine months ended 31 March 2004

This schedule details the adjustments made to the reported results for the fiscal of years 31 March 2004 and 2003 to arrive at the underlying business performance.

sm
	March 2004			March 2004	March 2003		March 2003	Reported	Underlying $^2$
	Reported	Asset / Investment		Underlying 2	Reported	Asset/	Underlying 2	Growth	Growth %
		Sales	Trading Post Total Adjust.			Investment Sales Total Adjust.
Mobiles
Mobile services	2,583		Ω	2,583	2,407		2,407	7.3%	7.3%
Mobile handsets	265			265	276		276	$(4.0\%)$	$(4.0\%)$
Total Mobiles	2,848		$\theta$	2,848	2,683		2,683	6.1%	6.1%
Internet and IP solutions	713		D.	713	587		587	21.5%	21.5%
PSTN
Basic access	2,405			2,405	2,334		2,334	3.0%	3.0%
Local calls	1,148			1,148	1,180		1,180	(2.7%)	(2.7%)
PSTN value added services	196			196	212		212	(7.5%)	(7.5%)
National long distance calls	856			856	870		870	(1.6%)	(1.6%)
Fixed to mobile	1,206			1,206	1,128		1,128	6.9%	6.9%
International direct	204			204	234		234	(12.8%)	(12.8%)
Total PSTN	6,015			6,015	5,958		5,958	1.0%	1.0%
Traditional Data	762			762	787		787	(3.2%)	(3.2%)
ISDN (Access and Calls)	698			698	723		723	(3.5%)	(3.5%)
Advertising and Directories	1,014		(8) (8)	1,006	944		944	7.4%	6.6%
Intercarrier services	863			863	871		871	$(0.9\%)$	$(0.9\%)$
Inbound calling products	357			357	372		372	$(4.0\%)$	$(4.0\%)$
Solutions management	350			350	352		352	$(0.6\%)$	$(0.6\%)$
Various Controlled Entities (excluding HK CSL & TClear)	134			134	167		167	(19.8%)	(19.8%)
HK CSL	544			544	727		727	(25.2%)	(25.2%)
Telstra Clear Customer premises equipment	427 138			427 138	414 149		414 149	3.1% (7.4%)	3.1% (7.4%)
Payphones	108			108	113		113	(4.4%)	(4.4%)
Other sales & service	499			499	584		584	(14.6%)	(14.6%)
Sales revenue	15,470	$\mathbf{0}$	(8) (8)	15,462	15,431	$\Omega$	15,431	0.3%	0.2%
Other revenue	486	(337)	(337) $\circ$	149	960	(802) (802)	158	(49.4%	(5.7%)
Total revenue	15,956	(337)	(8) (345)	15,611	16,391	(802) (802)	15,589	(2.7%)	0.1%

Telstra Corporation Limited (ABN 033 051 775 556) Quarter Ended 31 March 2004

Summary Underlying" Quarterly Data	Q1	OTRPCP	Q2	OTRPCP	Half 1	YTD PCP	Q3	QTRPCP	03 YTD	YTD	-04	QTR PCP	Full Year	YTD PCP	Q 1	OTR PCP	Q2	OTRPCP	Half 1	YTD PCP	Q3	OTRPCP	Q3 YTD	QTR PCP"
	Sep-02	Sep-02	Dec-02	Dec-02	Dec-02	Dec-02	Mar-93	Mar-03	Mar-03	Mar-03	Jun-03	Jun-03	Jun-03	Jun-03	$Sep-03$	$Sep-03$	Dec-03	Dec-03	Dec-03	Dec-03	Mar-04	Mar-94	Mar-94	Mar-04
Revenue
Mobiles
Mobile services	817	2.9%	815	(2.6%	\$,632	0.1%	775	(1.4%	2,407	(0.4%	E20	(0.6%	3,227	(0.5%	965	3.4%	889	9.1%	1,733	6.2%	450	9.7%	2,583	7.3%
Mobile handsets	-69	56.8%	\$02	37.8%	\$72	45.8%	184	108.0%	276	66.33	130	49.75	386	76.8%	-97	40.6%	89	012.7%	186	4.1%	79	\$24.0%	265	(4.0%)
vlobiles	Bas	5.7%	917	0.7%	1,804	3.1%	879	5.1%	2,663	3.8%	930	5.3%	3,613	4.2%	942	6.3%	978	6.7%	1,919	6.4%	929	-5.7%	2,848	$6.1\%$
interriet and IP solutions	190	46.2%	201	37.7%	391	42.7%	196	30.7%	587	37.8%	227	24.7%	814	34.3%	235	23.7%	228	13.4%	463	18.4%	250	27.6%	713	21.5%
PSTN products
Basic access	765	10.2%	791	9.4%	\$,556	9.8%	778	8.2%	2,334	9.3%	748	0.7%	3,083	7.1%	791	3.4%	819	3.5%	1,610	3.5%	795	2.2%	2,405	$3.0\%$
Local colls	397	$(11.0\%$	399	(6.3%	796	(8.7%	384	(0.3%	1,180	(6.3%)	387	0.3%	1,567	(4.6%)	394	(0.8%	384	(3.8%	778	$(2.3\%)$	370	(3.6%)	1,148	(2.7%)
PSTN value added services	-68	3.0%	74	12.1%	341	6.8%	73	9.2%	212	7.6%	68	6.3%	28/3	6.9%	68	0.0%	66	(10.8%	134	(5.0%)	-62	(12.7%)	196	(7.5%)
National long distance calls	285	(6.3%	298	(2.9%	582	(4.7%)	288	(6.2%	870	(5.2%	292	(2.0%	1,162	(4.4%	292	2.5%	286	(4.0%	578	(O. 7%)	278	(3.5%)	856	(1.6%)
Fixed to mobile	373	7.5%	382	5.5%	753	6.5%	375	5.9%	1,128	6.3%	389	8.7%	1,517	6.9%	402	8.4%	407	6.5%	ISO8	7.3%	398	6.1%	1,206	6.9%
International direct	46	(9.1%	80	(7.0%	361	(6.9%	73	(9.9%	234	(8.2%	71	(32.3%	397	(0.6%	68	(15.0%	-71	(12.3%	139	13.7%	65	(11.0%	204	(32.8%
otal PSTN products	1,966	1.2%	2,024	2.7%	3,989	2.0%	1,969	3.0%	5,958	2.3%	1,955	\$.3%	7,916	2.1%	2,015	2.5%	2,033	0.4%	4,047	1.5%	1,955	0.0%	6,015	1.0%
Fraditional Data	264	(4.3%)	262	(2.2%	526	(3.5%)	263	7.4%	787	0.0%	267	\$.5%	1,053	0.2%	260	(1.5%	249	(5.0%	509	(3.2%)	253	(3.1%	762	$(3.2\%)$
SDN (Access and Calls)	255	(7.9%)	241	(7.7%	496	$(8.0\%$	227	(30.3%)	723	(8.6%	227	(7.7%)	951	$(B.3\%$	237	(7.1%	233	(3.3%	471	(5.0%	227	0.0%	698	(3.5%)
Advertising and Directories	169	13.4%	562	2.4%	731	4.7%	214	18.9%	944	7.5%	273	5.8%	1,217	7.2%	185	9.5%	584	3.9%	769	5.2%	237	10.7%	1,006	6.6%
intercorrier services	380	7.9%	292	0.7%	591	4.0%	280	2.6%	871	3.6%	286	\$.3%	1,157	2.9%	287	(4.3%	295	1.0%	563	(1.4%	280	0.0%	863	(0.9%)
inbuund calling products	126	(17.1%	124	(15.6%	250	(16.4%	122	(32.9%	372	(15.3%	122	0.0%	494	(12.1%)	139	(5.6%	19	(4.0%	238	(4.8%)	139	(2.5%)	357	$(4.0\%)$
Solutions management	114	2.7%	125	13.6%	239	8.1%	113	5.6%	352	7.3%	135	(9.4%)	487	2.1%	126	10.5%	107	(14.4%	233	(2.5%)	137	3.5%	350	$(0.6\%)$
Other controlled entities (excl HK CSL & TClear)	-63	(41.1%	53	(53.8%	217	(46.1%	53	(49.0%	167	(47.3%	55	(32.9%	221	(44.6%	31	150.8%	48	(9.4%	79	(32.5%	55	7.8%	134	(39.8%)
Rong Kong CSL	244	(17.0%	240	(14.9%	484	(16.1%	243	(7.3%)	727	(13.2%	181	(25.2%)	908	(15.9%	191	(21.7%	186	(22.5%	377	(22.1%	167	(31.3%)	544	(25.2%)
TelstraClear		U.U.		$-0.0%$		0.0%		$0.0\%$		0.0%		0.0%		8.0%	142	2.5%	140	3.7%	282	3.3%	144	2.1%	427	$3.1\%$
Customer premises equipment	-49	(3.9%	51	(3.8%	100	(3.8%)	49	\$1.4%	149	0.7%	-45	(21.3%	194	(4.9%	-46	(6.1%	-46	(9.8%	92	(0.0%	-47	(4.1%)	138	(7.4%)
Payphones	-37	(2.6%	38	(2.6%	75	(3.8%	38	(2.6%)	113	(2.6%	35	(5.4%)	145	(3.9%	36	(2.7%	37	(2.6%	72	(4.0%	36	(5.3%)	108	(4.4%)
Other sales & service	205	19.9%	197	(23.2%	402	(4.5%)	182	12.3%	584	0.2%	190	(31.6%)	774	(2.9%	180	(12.2%	341	(28.4%	322	(19.9%	177	(2.7%	499	(34.6%
Sales revenue	4,868	1.1%	5,327	(3.1%	10,195	(0.1%	4,824	2.6%	15,017	0.8%	4,928	(0.4%)	19,947	0.5%	5,032	0.5%	5,424	(0.7%	10,456	(0.1%	5,006	0.8%	15,462	$0.2\%$
Other revenue	-54 4,922	(46.0%	57 5,384	5.6% (3.0%	311 10,306	(27.9%) (0.5%	47 4,871	(7.8%	158 15,175	(22.9%	104 5,032	20.9% (0.35)	262 20,209	(10.0%) -5.3%	52 5,084	(3.7%	-47 5,466	(26.3%	96 10,550	(15.3%) (0.3%)	55	17.0%	149 15,611	(5.7%) $0.1\%$
Total revenur		5.1%						2.5%		0.5%						0.5%		(1.0%			5,061	1.0%
Selected statistical data."
Mobile voice telephone minutes	1,270	7.1%	1,323	5.5%	2,594	6.35	1,289	7.9%	3,883	(10.2%	1,372	12.7%	5,255	8.3%	1,473	15.5%	1,538	16.2%	3,011	16.1%	1.554	29.6%	4,565	17.6%
Short Message Service (SMS) (number of messages)"	290	26.5%	342	35.0%	632	31.0%	380	42.0%	1,012	34.9%	401	53.9%	1,413	39.8%	432	49.0%	478	39.8%	910	44.0%	489	28.6%	1,399	38.2%
Mobile services in operation (thousands)	5,884	8.7%	6,098	8.2%	6,098	8.2%	6,338	$9.5\%$	6,338	9.5%	6,569	10.6%	6,569	10.6%	6,720	14.2%	6,985	14.5%	6,985	14.5%	7,369	13.1%	7,169	33.1%
Broadband subscribers (thousands)	206	\$26.1%	244	121.7%	244	121.7%	290	125.8%	290	125.8%	361	113.6%	363	\$13.6%	439	113.1%	507	107.8%	507	107.8%	617	\$12.8%	637	132.8%
Narrowband subscribers (thousands)	1.084	15.4%	1,103	7.1%	1,163	7.1%	1,134	6.7%	1,134	6.79	1,358	9.6%	1,156	9.7%	1,180	4.9%	\$.378	6.8%	1,178	6.8%	1,197	5.6%	1,197	5.6%
Total On-line subscribers (thousands)	1,290	24.4%	1,347	18.2%	1,347	18.2%	1,424	\$9.5%	1,424	19.5%	1,539	24.0%	1,519	24.0%	1,619	25.5%	1,685	25.1%	1,685	25.1%	1,814	27.4%	1,814	27.4%
Basic access lines in service	10.53	(0.4%	10.48	(0.5%	\$0.48	(0.5%	10.48	(0.8%	10.48	(0.8%	10.46	(0.8%)	10.46	(0.8%)	10.45	(0.0%	10.44	(0.4%	10.44	(0.4%	10.43	(0.5%)	10.43	(0.5%)
Local calls (number of calls)	2,527	(3.9%	2,491	(4.8%	5,019	(4.3%	2,395	(4.3%	7,414	(4.3%	2,380	(5.6%)	9,794	(4.6%	2,435	(3.7%	2,396	(3.0%	4,831	(3.7%	2,324	(3.0%)	7,155	$(3.5\%)$
National long distance minutes	2,346	3.4%	2,310	0.1%	4,656	1.7%	2,278	(0.3%	6,934	\$.0%	2,221	(3.5%)	9,163	(0.1%	2,193	(6.5%)	2,350	(6.9%	4,343	(6.7%	2,328	(6.6%)	6,471	(6.7%)
Fixed to mobile minutes	370	8.1%	985	5.3%	1,955	6.7%	-990	7.6%	2,945	7.0%	999	6.4%	3,944	6.9%	1,041	7.3%	1,058	7.5%	2,099	7.4%	1,070	8.1%	3,169	7.6%
international direct minutes	191	(2.7%	196	(3.7%	387	(2.9%	180	(5.9%)	567	(3.9%	373	(9.5%)	740	(5.2%	165	(13.4%	\$73	(11.9%	338	(12.7%	361	(10.7%)	499	$(32.0\%)$
(SDN access (basic lines equivalents) (thousands)	1,225	(1.3%	1,190	(4.5%	1,190	(4.5%	1,199	(2.4%	1,199	(2.4%	1,213	(4.4%)	1,213	(4.4%	1,210	(1.2%	1,224	2.9%	1,224	2.8%	1,250	4.2%	1,250	4.2%
Foxtel SIOs (thousands)	805	15.4%	809	4.5%	809	4.5%	4186	2.8%	816	2.8%	836	4.5%	836	4.5%	449	5.6%	862	6.6%	862	6.6%	867	6.3%	467	6.3%

Footnotes:

, vouweles.
(i) Fiscal 2003/2004 and its comparative year exclude Trading Post and asset sakes from the revenue underlying base. Fiscal 2002/2003 ond its comparative year exclude TelstraClear, Keycorp and asset sales from

(iii) Mobile Services in Operation(SIOs) are net of deactivated prepaid customers who were outside the recharge only period.
(iv) Statistical data is represented in millions unless otherwise stated.

(v) Basic access line in service prior periods have been adjusted to correct on error in the accumulation process. Prior periods have been increased by between \$30,000 and 170,000 services