TELSTRA GROUP LIMITED — Investor Presentation 2003

Jul 17, 2003

18 July 2003

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 Broadband/BigPond Briefing

In accordance with the listing rules, I attach a copy of a briefing for analysts for release to the market.

Yours sincerely

North brake

Douglas Gration Company Secretary

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

Media Release

206/2003

18 July 2003

BigPond ignites broadband growth

Telstra BigPond^TM will more than double its broadband customer base from approximately 240,000 customers today to at least half a million customers in 2005.

"We are unleashing a bold marketing campaign, innovative and exciting new content and improved sales and product strategies to ignite broadband take-up," BigPond Managing Director, Mr Justin Milne, said today.

Unveiling a new print and electronic advertising campaign, Mr Milne said the initiative would promote the benefits of broadband to a new, broader customer base.

"Our research reveals that some consumers are reluctant to buy broadband because they think it's expensive or difficult to install," Mr Milne said.

"However, ADSL broadband can be comparable in cost to dial-up access on a dedicated second phone line, and installation can be quick and easy with ADSL self-install," he said.

Once a customer is connected, BigPond's 'pay for what you use' ADSL broadband plans start at less than \$60 on an 18 month plan - comparable to the cost of an additional telephone line and multiple local telephone calls used for dial-up access.

An ADSL broadband service can be self-installed in about 10 minutes once a qualifying customer's telephone has been enabled, without the need for special cable to be installed in their home. This option, which is available for \$129 upfront and from \$60 a month on an 18 month plan, is now chosen by around 70 per cent of BigPond ADSL customers.

Mr Milne also announced an exclusive Internet rights sponsorship with the V8 Supercar Championship Series.

"BigPond will provide its ADSL and cable broadband customers with unmetered and exclusive Internet access to V8 Supercar content," Mr Milne said.

"As well as the V8 Supercar sponsorship, we intend to expand BigPond broadband content to include live and exclusive music, sport and multiplayer games content," Mr Milne said.

Mr Milne also used the briefing to introduce a new management group which brings together an expert sales, marketing and product team with national and international experience.

"The new management team is transforming BigPond into a customer- and sales-focused business driving rapid growth," Mr Milne said.

"We will grow by utilising Telstra's multiple sales forces, better exploiting Telstra's nationwide network of more than 160 Telstra shops, and entering into agreements with 3,500 other retail outlets by December 2005."

Telstra media contact - Kerrina Lawrence, 0419 352313

New content channels - available from Sunday, 20 July at www.bigpond.com/music, www.bigpond.com/sports, www.bigpond.com/entertainment and www.bigpond.com/games

Telstra's national media inquiry line is 13 1639 and the Telstra Newsroom is located at: www.telstra.com.au/newsroom

Media Release

18 July 2003

205/2003

Telstra ignites broadband growth

Broadband will be a key growth engine for Telstra with annual revenue from broadband products expected to increase by approximately \$750 million to \$1 billion in 2006.

"Telstra is on track to connect at least one million broadband customers in 2005 and achieve one billion dollars in broadband revenue in 2006," Group Managing Director, Telstra Broadband, Mr Bruce Akhurst, said today.

At a briefing in Sydney today, Telstra outlined key elements of its broadband business -

• After investing nearly \$1 billion in the national broadband network to date, Telstra is expecting EBITDA and EBIT positive results in the current financial year.
• While Telstra has substantially progressed its fixed broadband infrastructure investment, the broadband business will grow larger with growth in customer numbers.
• Telstra expects to invest a further \$1 billion in broadband over the next five years: this strategic investment will be accommodated within the company's previous statements that annual domestic capital expenditure is expected to settle at approximately \$3 billion a year for the near future.

"Telstra's powerful brand, customer base, wide network coverage and diverse and growing sales channels mean the company is well positioned to rapidly grow in both retail and wholesale markets," Mr Akhurst said.

"Today we are adding a sharp sales and marketing focus to one of Australia's largest ever technology projects, which will make the benefits of broadband available to all Australians," Mr Akhurst said.

Telstra BigPond^TM, Australia's largest Internet service provider, announced a range of initiatives designed to grow subscriber numbers including -

• a major new marketing campaign, starting this Sunday, to promote the benefits of broadband and introduce consumers to a new-look BigPond
• innovative content and new products designed to attract and retain BigPond customers ٠
• new and broader sales channels for broadband products, including Telstra's nationwide network of more than 160 Telstra shops

Telstra Wholesale, Australia's leading broadband wholesaler, forecast that the size of the overall wholesale market would grow dramatically. Telstra Wholesale outlined -

• predicted growth in Telstra Wholesale DSL connections from approximately 120,000 today to at least 500,000 in 2005
• a growing range of innovative products and solutions to meet customers' diverse needs and fully exploit overall demand
• a new focus on wholesale marketing, including new sales channel initiatives $\bullet$

"Broadband is a solid performer for Telstra with great potential, and our growth is accelerating under the guidance of new teams with a new focus," Mr Akhurst said.

"Telstra's broadband rollout has been a massive technological feat which will now deliver benefits to all Australians," he said.

Telstra media contacts:

BigPond - Kerrina Lawrence, 0419 352 313 Telstra Wholesale - Liz Jurman, 0438 399 435

Telstra's national media inquiry line is 13 1639 and the Telstra Newsroom is located at: www.telstra.com.au/newsroom

Telstra Broadband Analyst Briefing

Bruce Akhurst

Group Managing Director Telstra Broadband

18th July 2003

Telstra Broadband

Broadband is taking off

The Broadband market is firing

Telstra = key market player

The Control Common State Books and State Books and State Books and State Books and State Books and International State Books and International State Books and International International International International Intern Martin Carl ta dheeraa isaa

Telstra Broadband is thed for success

Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria Maria M

Telstra Broadband

mare ese

Thistra

Analyst Briefing

Friday, 18 July 2003

Disclaimer

This presentation includes certain forward-looking statements that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, those forward-looking statements. Such forward-looking statements are not quarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained herein. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia, exchange rates; competition in the markets in which Telstra will operate; the inherent requlatory risks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate.

Side₂

Felstra

BigPond Igniting

Justin Milne

Managing Director, BigPond

Transforming the Business

Odstra

Building the A-Team

Amanda Johnston Director, Marketing

Mike Callen Director, Sales

David Waldie Director, Business Development

Justin Milne Managing Director ofBigPond

Craig Turner

Leanne Wallace General Manager, Customer Service

Side 5

Bob Whitson Group Manager, Planning and Analysis

Chris Lewis Chief Technology Officer

zalatra

The Broadband market is at a 'Tipping Point'

Telstra

Strong growth in SIO's

antatro Strong growth in revenue fuelled by Broadband BigPond Revenue FY 01-03 $(SM)$ \$505 836 Y Broadband KYA \$197 M. Dial-up an an ainm an ngangang anggunang
Kabupatèn Kabupatèn BW EWE EW B I Side 9

Telstra

BigPond is Australia's Largest ISP

BigPond Broadband provides 3.5x higher revenue than BigPond Dial-up

External

Finlatra

Each ADSL Broadband customer makes a positivel contribution

Cost reductions are increasing margins

Allatra

BigPond prices are affordable and provide value

Side 14

ATOR THE

Once installed, entry-level ADSL
Broadband costs could be less per month than:

• a coffee a day
• · an Australian Financial Review a day
• · a dial-up connection with a second line and call connection costs

Value Proposition

• . Up to 50x faster than standard dial-up
• Be online and on the phone at the same time
• Cheaper than you think

Once you have used Broadband you could never go back to dial-up. We believe the value for money is clear.

Prices are competitive internationally

Sources

International Price Comparison (Entry-Level ADSL Price Plan Exchange Rate Adjusted)¹

Alatro

Prices are competitive domestically

E

Telstra

Sources: From company web sites at 16^th July 2003. Notes:

(1) Prices are for 256/64 Kbps, minimum 500Mbyte monthly usage allowance or entry level plan allowance, 12 months contract term, 1 port modern, incl. af nominal fees (professional installation, contract & connection fees), and excl. any special

Side 16

short term discounts

(2) TPG has unlimited monthly usage and the price is for Metro customers only

(3) liNet has 2000MB monthly usage allowance.

(4) Optus has 550MB monthly usage allowance. Price is for Cable and assumes preselection of the Choice 4 plan

(5) AOL/7 has 700MB monthly usage allowance (6) Prices for Telstra assumes Telstra preselection

Managing price is essential to profitability

Reducing upfront costs drives take up

Side 18

Monthly ADSL & Cable Applications $(SIO's)$

Feb-03 Mar-03 · \$100 reduction in installation fee in March realised 70% increase in BigPond Broadband applications

Telstre

BigPond igniting Broadband growth

We are on track to maximise profitable contribution to Telstra's goal of:

• 1 Million SIO's Dec 2005
• · \$1 Billion in revenue Dec 2006

Our strategy is clear and
single minded "Get Guyaray

Slide 19

Telstra

How will we deliver? Marketing

Amanda Johnston

Director, Marketing

Targeting barriers to entry has been successful

Side 21

Thurn and no excuss thus traditi

• March 2003 \$100 off 2 installation fee
• 70% increase in BigPond O Broadband applications over previous month

Targeting barriers to entry has been successful

Side 22

in the time it would take to fold this into a swan, you could self-install BigPond" Broadband ADSL.

• April 2003 self install campaign focussing on barrier that Broadband is difficult and inconvenient to install
• · 20% increase in self installations on previous month

BigPond's brand evolving to meet the early majority

Alistra

BigPond's mass strategy

Challenge is to ignite the market

Telstra

Get broadband talked about

Communicate the functional and lifestyle benefits of broadband

Showcase the competitive proposition of BigPone.

Get the customer to act now

Slide 25

E.

Integrated marketing program with media

a katro

Telatro

New marketing campaign promotes
relevance and value

Slide 28

BigPond igniting Broadband growth

We are on track

Our strategy is clear and
single minded:

SGet Customer"

How will we deliver? Product

Craig Turner

Director, Products

Compelling & customer friendly solutions

NEWYOR Coverage Applications & Qontan

• $\bullet$ DSL: $\sim$ 7.5m premises
• Cable: ~ 2.5m premises
• · Satellite: Australia wide
• · ISDN:96% of Australian premises

• · Dial-Up: local call gccess Australia wide

• Applications: Email, Web Hosting

• Content: afl.com, The Basement, NRL

Side 31

Service & Support

abatra

• Professional/selfinstall
• · 24/7 technical support
• ADSL Customer Service level guarantee

81

Self Install makes it easy to connect to BigPond Broadband

Side 32

• Customer convenience
• · Lower price to customer
• · Cost savings to BigPond

antatra

a tatro

Content to drive BigPond Broadband uptake & retention

Side 34

• What's different?
• · Focus on broadband content
• Some content is free to BigPond Broadband customers
• Leverage marketing spend $\sigma$ . to secure Internet Rights

E

Content at BigPond - Broadband Web Channels

Side 35

BIGMOND

Cultura

Rock Command

BigPond Sports Channel - Live & Exclusive!

Games & Music to stimulate Broadband

Station

What's next from BigPond?

• Cable self install n
• BigPond ISDN I
• Home networking (Wi-Fi)
• Broadband Wireless

BigPond igniting Broadband growth

We are on track

Our strategy is clear and
single minded:

"Get Custoner"

Side 39

Telstrd

How will we deliver? Sales

Mike Callen

Director, Sales

BigPond Sales will convert marketing and product initiatives to customers

Side 41

Initiatives to increase reach and ability to convert

• Provide easy to purchase and install products
• Increase efficiency of existing O channels
• · Develop new high growth channels
• Create new sales channels
• Utilise Telstra's other assets

Self Install take up demonstrates customers want ease of purchase and install

Seletra

BigPond will grow those channels where our customers go to buy broadband

Enlatra

Increasing efficiency of existing channels will result in significant sales uplift

Online

Channel Overview

• Most cost effective channel with 20% of existing sales
• 1 million unique visitors a month to BigPond.com

Key Initiatives

• · Relaunching BigPond.com
• · Increasing ease of navigation and signup
• · Special promotions

Chamal Overview

· Largest existing channel with 70% of sales

Side 44

• More than 4,500 telesales operators

Key Initiatives

• · Investing in 131 282 as the BigPond number
• · Improving sales processes; training and incentives

Retail channel provides reach and 'higher touch'

Channel Overview

• · Telstra retailer outlets have 5,800 points of presence
• · Small volume of BigPond sales to deire

Key Initiatives

• . Increasing footprint of BigPond ADSL Retail Self Install Kit
• Joint marketing activities and offers withreigilers
• · Targeted training and incentives

Dealers, OEM's & Business Partners are a key channel to small SME, SOHO and residential customers

Channel Overview

• Existing close relationships O
• 720 dealers currently sell Telstra $\bullet$ products
• Few BigPond sales to date rs:

Key Initiatives

Slide 46

• Extend BigPond product range to more dealers
• Create bundled products and Ö services
• Targeted training and incentives

BigPond will utilise Telstra's other assets & relationships

· Strong regional sales presence in rural and regional centres

• Large SME customer base

Slide 47

· Large member sales force able to sell online solutions

· Many cabled homes could also have broadband

Tubatro

Retaining customers through churn minimisation initiatives and packaging opportunities

Side 48

Packaging:

• Bundles and packaging increases conversion and up-GOI
• BigPond Broadband and Dial-up are a part of Telstra Rewards

Churn Minimisation:

• . Incent new users to prevent early cancellation
• · Reward customers for remaining loyal
• Winback and save programs to recover customers

Telstra Shops are a unique and major new channel

Illustration of new look BigPond pod

• Channel Overview
• Foot traffic of 20M per year
• 4 Mobile centric
• · low BigPond sales

Key Initiatives

Slide 49

• · BigPond Broadband as key new product category
• · Major BigPond presence
• Targeted training and incentives

BigPond igniting Broadband growth

We are on track

Our strategy is clear and
single minded:

"Get Customers"

Side 50

Zekstro

Telstra's Broadband Access Networks

Andrew Johnson Managing Director Data & Online, Telstra Technology

18 July 2003

Telstra Technology

Overview	a za
Telstra's Broadband Networks
New Organisation Structure & Management Team
Network Performance
Future Plans
Conclusion
	Side 2
Telstra Technology	Telstra Broadband

Telstra's Broadband Networks

RAMA

Broadband Access Comparison

	Dina UII	External EANIS AND	Girêday Jamme men	BIGHT Herman Company
Talla 1999	Up to 512Kb/s	National	14K	High Speed Internet Access
Service	Up to 1.5 Mb/s	$~\sim$ 7.5 $~\text{m}$ Services	246K	High Speed Internet Access
THE REAL	Up to 10Mb/s	$-2.2$ m Services	104K	High Speed Internet Access
Maria	Up to 128Kb/s	$96%$ of Population	ÖΚ	Medium Speed Internet Access

Telstra Technology

Telstra Broadband

Organisation & People

Telstra Technology

Stae 5

a martin

What are we doing to
improve performance?

Telstra Technology

Side 7

Bonda

Network Performance Improvements

Main Elements

• ADSL Network extensively re-designed and rebuilt
• BigPond™ has major upgrade underway to be completed in November

Major Independent & Internal Studies

• Addressed Architecture
• Performance
• Scalability
• Customer Reach
• Verified soundness of current initiatives and identified further requirements
• · Majority of recommendations delivered this year, the remainder to follow shortly thereafter.

Telstra Technology

Telstra Broadband

Side 8

$\frac{1}{2}$

Telstra Technology

Side 10

a shekara ta 1999

Service Level Guarantee Performance Improvement

PARTIE

Service Level Guarantee: % Customers Rebated 70%

The future for Broadband

Telstra Technology

Side 13

a Pina

The Future

Coverage

• · Wireless Broadband
• Extended Range

Reliability

• . Improved fault diagnosis and restoration systems
• · Systems Redundancy
• Ongoing Improvement Programme

Driving out costs

• . High Density, Low Cost DSL Access Multiplexer
• Automated Management Systems to Simplify Self Installation

Telstra Technology

Condusion

Commitment to excellent Broadband service levels

Historical shortcomings identified and rapidly being rectified through

• Technology
• · Organisation and key people

Confidence for future based on:

• · Extensive independent study
• Evidence of significantly improved customer experience

Telstra Technology

Telstra Broadband Business Briefing

Maria Bara

THE REAL

Side₂

Wholesale Broadband Analyst Briefing

Deena Shiff Managing Director Telstra Wholesale

18 July 2003

The Wholesale proposition

The Broadband opportunity

Harnessing the growth potential

Why offer Broadband via Telstra Wholesale?

a Trans

Side 4

Wholesale is an equally valuable channel for Telstra

The Lowards Provision of the United States

Drives returns to scale to maximise return on investment

. . . . . . . . . . . . . . . . . . . .

Alexandria de la provincia de la provincia de la provincia de la provincia de la provincia de la provincia de

Market stimulation & competition benefits all

Telstra Wholesale provides a growing range of products to a diverse customer set..

ENTERNATION

The Wholesale proposition

The Broadband opportunity

Harnessing the growth potential

TW can leverage its channel reach to capture a major share of the overall market growth

MARTINIA

Strong growth performance - especially in the last quarter

MAGICIA

The Wholesale proposition

The Broadband opportunity

Harnessing the growth potential

an Sirika T

TW Broadband - From Marketing Agnostics to Evangelists

MELLIAN

Wholesale products that meet the diversity of our customers and their end user segments

Ongoing development of innovative solutions that meet customers needs and fully exploit demand

Exhibition DIWANGWOR Initaxata NAMSOLITIONS UD KO Productive incre · 512/512 service • VISP in a box • Minimux · Multiple domain • Safe Internet & · Transpositions Hosting nanes • ISDN • Service Level • Content • ADSL Demond Enablement Guarantees Register Platforms • Ethemet ISP • Wireless LAN/ interface Broadband

Web based services reduce activation times, costs and increase efficiency

Order transformation

• Overall TW operations now process 73% of all orders online, a significant change from 23% in 00/01
• Broadband provides a further opportunity to move from existing online systems towards implementing Business to Business (B2B) capabilities

• B2B capabilities are scheduled to commence in the new year (2004)

Dedicated front of house facilities also help manage scale

Dedicated Broadband Customer Support

• . Ordering and Billing Dedicated Broadband Call Centre - Delivery Escalation Group established
• Service Assurance - Broadband Help Desk
• 7x24 Fault reporting
• 7x24 Escalation service

Streemlined Customer Transfer Process

• · Launched on 14 April 2003
• · 24 customers formally signed up (as at 8/7/2003)

B2B and FoH initiatives drive customer reteation and industry growth

Wholesale participation benefits both
Telstra and broadband industry

TATE TE

Disclaimer

This presentation includes certain forward-looking statements that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, those forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Telstra, which may cause actual results to differ materially from those expressed in the statements contained herein. For example, the factors that are likely to affect the results of Telstra include general economic conditions in Australia; exchange rates; competition in the markets in which Telstra will operate; the inherent requlatory risks in the businesses of Telstra; the substantial technological changes taking place in the telecommunications industry; and the continuing growth in the data, internet, mobile and other telecommunications markets where Telstra will operate.

Today's Agenda

Session 1: Telstra Broadband

Telstra Broadband - an Overview

Telstra Wholesale - Growing Fast

Technology - the Network

Q&A's

Session 2: Telstra BigPond^TM

Transforming BigPondIM

BigPond^TM broadband growth strategy

Q&A's

DE 1577.

Wholesale, Broadband & Media

Wholesale, Broadband & Media

• Establishment of BU early 2003
• Telstra's growth ongoing

• · BU revenues are likely to exceed \$4billion for 02/03
• EBIT contribution is likely to exceed \$2billion for 02/03
• Approximately 3,200 staff
• Broadband engine centralised within our key businesses

Broadband growth is fundamental to Telstroks (1999)

$-111$

Broadband is taking off

The Broadband market is firing

Telstra = key market player

Telstra has a national network coverage

a Marin Sir

We know our market and are well placed to grow it finisher

De Maria

Maria Alexandra

MARTINE Experienced leaders Telstraßtoadband Bruce Akhurst Group Managing Director In the Monte of the Contract of e a la construcción 4000⁰⁰⁰ The Bally Company Tana mata Tana magaalada ah sid The Straight Company EN SIGNIFICATION Maria (Mari Marat de la Diaraman We have brought together the leaders Of the Telstra Broadband business Side

Telstra Broadband

A Valuable & Growing Channel

Telsta Wholesle

• · First class service provider
• An effective & valuable broadband channel
• Market stimulator
• Capturing the growing market

Between Tels tre Wholesale and BigPond^IM We have all aspects of the market covered

Extragalactic

Available & Robust Network

• Our Commitment
• = robust national coverage
• · Our Standard = world class availability
• · Our Focus = customer experience

Watatakownthe raware residence Australia and are committed to maintaining it for all Australians

Telstra Broadband

AADSI OHFC

$\mathbf{m}$ Satellite

Indicative diagram

INSTERN

Growing the Customer Base

BigPondTM

• · Australia's leading ISP
• · New look, new leadership, new team
• · Leveraging its channels
• · Getting customers

Between Tels to Write Grid and Big Rond W We have all aspected this market covered

Milia