TELSTRA GROUP LIMITED — Investor Presentation 2007

Oct 31, 2007

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1 November 2007

The Manager

Company Announcements Office Australian Stock Exchange 4[th] Floor, 20 Bridge 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

Investor Day – slide presentation by Telstra Senior Executives

In accordance with the listing rules, I attach a copy of presentations to be delivered at Telstra’s Investor Day for release to the market.

Regards

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Claire Elliott Acting Company Secretary

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

Agenda

Agenda
Welcome and Introduction	Ben Spincer
Gaining Further Competitive Advantage	Sol Trujillo
Update of FY08 Guidance and Long Term Management Objectives	John Stanhope
Overview of Transformation	Greg Winn Stuart Lee
Wireless Update	Mike Wright
Wireline Transformation	Hugh Bradlow
Telstra Services	Mick Rocca
Transforming Telstra’s IT Environment	Tom Lamming John McInerney
Q&A
Global Perspective, Future Technologies	Dr Paul Jacobs

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Agenda

Agenda
Lunch
	Bill Stewart
Winning in the Market	David Moffatt Deena Shiff
	David Thodey
CDMA Migration	Geoff Booth
Sustainable Growth Through Product Differentiation and Innovation	Holly Kramer
	Justin Milne
Growth Through Integration/Media Comms	Bruce Akhurst
	Kim Williams
Cultural Change Progress	Andrea Grant
Q&A
Financial outcomes of transformation	John Stanhope
Analyst Q & A
Media Q&A

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1

Disclaimer

• These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these 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 in these presentations. 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 regulatory 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. A number of these factors are described in Telstra’s 2007 Annual Report.

• All forward-looking figures in this presentation are unaudited and based on A-IFRS. Certain figures may be subject to rounding differences. All market share information in this presentation is based on management estimates based on internally available information unless otherwise indicated.

1

Investor Day 2007

Sol Trujillo Chief Executive Officer

Extending our competitive advantage

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1

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What we said we’d do:
The 2005 Strategy to transform Telstra
PartnersFewer Comms, Info Expandin
Too many Transactions, Core
Entertainment Competency Areas
One
Australia 1st, 2and 3 [nd][rd] Market Based FactoryModel IntegratedCompany ModelCost Low
Priority Management
Broadband Next
InterestsServing of All IntegratedServices Focused GenerationNetworks & IT Ne w Economic Model
ExperienceCustomerNe w Differentiationis the Key Allocationwill Drive ResourceROIC Simplicity of Use (One Button,Touch,Click, Value Based Price Basedvs.
Page,
Screen)
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+2.5 to +3.0% pa
Free Cash Flow $7bn Sales Revenue +2.0% to +3.0%
+4.2%
$6bn
$23.7bn
$22.7bn
$22.2bn
FY05 FY06 FY07 FY08 FY09 FY10 FY05 FY06 FY07 FY08 FY09 FY10
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Mobiles Data Revenue Growth
93.5% 22.4%
Non-SMS SMS
$350m Data Revenue in Q1 Data Revenue in Q1
49%
$230m
World
61% Leading
51%
39%
$0m
Q1 2007 Q2 Q3 Q4 Q1 2008
Non-SMS Data Revenue SMS Data Revenue
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Wireless – leading global peers
3G as % of total mobile base 50-70% in 2010
30%
25%
20%
15%
10%
5%
1H06 2H06 1H07 2H07 1Q08
Telstra Vodafone TIM Telefonica AT&T
EU Average Moviles
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Postpaid Cohort Analysis
Like-for-like 2G to 3G ARPU uplift
260%
15%
8%
Voice SMS Interactive data
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Broadband – retail market share and ARPU

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50% Retail Market Share Retail ARPU $56
$54
45%
$52
$50
40%
$48
2H05 1H06 2H06 1H07 2H07 1Q08
Includes retail broadband, mobile broadband and internet direct (retail ADSL) customers
ARPU
Market Share
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4

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Wireless Broadband SIOs
400,000
+70k
Next G [TM] EVDO
200,000
0
H2 06 H1 07 H2 07 Q108
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PSTN – retail line loss
5%
0%
H2 05 H1 06 H2 06 H1 07 H2 07 Q108
-5%
EU Average US Average Telstra
-10%
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5

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T[Life] Retail Store, Sydney
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Integrated Company, Integrated Services
BigPond Cable
Extreme [®]
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6

Update of FY08 Guidance & Long Term Management Objectives John Stanhope CFO

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Update of FY08 Underlying Performance

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Previous FY08 Guidance Updated FY08 Guidance Major Drivers
Total
RevenueGrowth 2.0% to 3.0% pa No change -+$114m Stronger Sales$30m W’sale ULL/LSS -$52m
- $91m FX Translation
-$45m MTA rates
EBITDA 2.0% to 3.0% pa No change
growth
+$76 FX Translation (opex)
+$66m MTA rates (opex) +$30m
-$52m Rev (as above)
EBIT 3.0% to 5.0% pa 4.0% to 6.0% -$60m Redundancy
Growth
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• Initial Prudent guidance based on risks associated with OPEL and the ACCC’s $14.40 ULL decision. Improved outlook premised on Telstra’s continued strong performance in Broadband and the fact that the OPEL infrastructure will have little impact in 07/08.

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1

Update of FY08 Reported Performance

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Includes Foxtel distribution
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Previous FY08 Guidance Updated FY08 Guidance Major Drivers
Total +$100m Foxtel Dist’n
Revenue 2.0% to 3.0% pa No change +$114m Stronger Sales
Growth - $30m W’sale ULL/LSS +$48m
- $91m FX Translation
EBITDA 2.0% to 3.0% pa 3.0% to 4.0% -$45m MTA rates
growth
+$76 FX Translation (opex)
+$66m MTA rates (opex) +$130m
EBIT 3.0% to 5.0% pa 5.0% to 5.0% +$48m Rev (as above)
Growth
-$60m Redundancy
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Accounting for FOXTEL distribution

• P&L Distribution +$100m to Other Revenue +$100m to EBIT

• • Equity Accounting (Off B/Sheet Losses) − Accumulated equity losses :+$100m − Accumulated losses at 30 June 2007 :$ 73m − Add: Distribution :$100m − Total accumulated losses at 30 Sep 2007 :$173m

• • Reason: − Foxtel has borrowed to enable distribution to partners and Foxtel’s net assets have reduced as a result; accounting rules allow Telstra to recognise the distribution as revenue.

• NOTE: Ongoing distributions from FOXTEL through borrowings should not be assumed.

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Update of 1H08 Guidance

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Underlying (excl Foxtel distribution)
Previous 1H08 Guidance Updated 1H08 Guidance
Note: 1H08 growth will be
EBITDA Slight decline Flat to slightly impacted due to 1H07
positive
including:
EBIT Implied decline Slight decline • MTA adjustment $37m
• AAS profit on sale $43m
Reported (incl Foxtel distribution) • REACH credit $40m
Previous 1H08 Guidance Updated 1H08 Guidance • Transformation spend
profile over the period
EBITDA N/A Positive
EBIT N/A Positive
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Long Term Management Objectives
Previous Long Term Updated Long Term
Management Objectives Management Objectives FY05
Revenue
Growth 2.0% to 2.5% pa to FY10 2.5% to 3.0% pa to FY10 $22.2b
Cost
2.0% to 3.0%pa to FY10 No change $12.0b
growth
EBITDA
2.0% to 2.5% pa to FY10 2.5% to 3.0% pa to FY10 $10.5b
growth
EBITDA
46% to 48%pa by FY10 No change 47.2%
margin
Workforce Down 12,000 by FY10 No change 52k
Capex 10% to 12% of revenue by FY10 No change 16%
Free
cash flow $6b to $7b by FY10 No change $5.2b
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• Based off FY05 results

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3

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Pathway to new revenue objective
400-600m 0-300m
$25.1-25.7b
1.0-1.3b
$23.7b 1.0-1.4b 1.1-1.5b
FY07 Fixed Mobiles Internet Sensis Other FY10
(incl SouFun)
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4

Overview of Transformation Greg Winn Chief Operations Officer

Update on timeline for the Transformation build

Major Milestones	Nov 05	Nov 07
3G wireless network launch	Q1 07	Oct 06
IP/MPLS Core	June 07	Aug 06
Multi Service Edge	Dec 07	Dec 06
Next Generation Ethernet	June 09	June 07
IP-DSLAM	June 09	June 07
FTTN	June 09	On Hold
Soft Switches – 5 mated pairs	June 09	June 09
IT Transformation	Dec 10	Oct 07 (TR1)
We remain on target to deliver our overall Transformation program

1

And we are delivering real outcomes and benefits

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3G 850MHz Peak network speeds Next IP [TM] network
Next G [TM] Network nationally (14.4 Mbps
downlink and 1.9 Mbps • IP/MPLS Core
6000 Base Stations uplink) • EA build
>2,500 CDMA 200km range in selected • MSE build
areas
Next IP [TM] network Installed 2.2 million HFC upgrade in New Customer Care
nodes scalable to 77 ADSL1 ports and 2.7M Melbourne and Sydney and Billing Platform
times capacity of the ADSL2+ ports (30 Mbps downlink and
old core network 1.5Mbps uplink)
IT Enhancements Field Workforce Cost of activation Trouble Reports per
to the business productivity improved reduced by more 100 SIO reduced by
by more than 20% than 22% more than 40%
New Data Centres
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Capex / Sales trend
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Peak spend driven by: Structural shift in Capex mix:
• Next G [TM] • Complete transformation build
25% • Next IP [TM] • Fewer physical platforms/systems
• IT • More software defined applications and
Assumes no FTTN services
20%
• Flexibility/Scalability
• Clear Evolution path
15%
Low double digit
10% beyond FY10
10-12%
5%
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
No significant change in long term Capex profile
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2

Wireless Broadband Data cost comparison

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120% 120%
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
GPRS EDGE WCDMA HSDPA HSPA+ GSM Next G™ Future Voice
(R99) today Optimisation
Telstra derived relative Wireless network unit costs
as % of GPRS
Network Cost per MByte Network Unit Cost of Voice as a % of GSM
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Wireless Data traffic
National Metro vs Rural
700.00
Next G™network 600.00
500.00
Country
400.00
300.00
200.00
EV-DO
Metro
100.00 Country
2G and others Metro
0
Oct Dec Feb Apr Jun Aug
06 06 07 07 07 07 CDMA Packet Data Next G Packet Data
• Next G [TM ] growth curve exponential
• Rural areas are generating significant data volumes
Data Traffic Volume (BH Mbps) Data Traffic Volume (BH Mbps)
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Telstra National Telstra International
IP Traffic Growth IP Traffic Growth
90,000 25,000
80,000
20,000
70,000
60,000
15,000
50,000
40,000
10,000
30,000
20,000 5,000
10,000
Extrapolated growth of 41% per year
Architected scalability to ~2024
Feb-06Apr-06Jun-06Aug-06Oct-06Dec-06Feb-07Apr-07Jun-07Aug-07Oct-07Dec-07Feb-08Apr-08Jun-08Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12 1 /01 /20061 /04 /20061 /07 /20061 /10 /20061 /01 /20071 /04 /20071 /07 /20071 /10 /20071 /01 /20081 /04 /20081 /07 /20081 /10 /20081 /01 /20091 /04 /20091 /07 /20091 /10 /20091 /01 /20101 /04 /20101 /07 /20101 /10 /20101 /01 /20111 /04 /20111 /07 /20111 /10 /20111 /01 /20121 /04 /2012
TBytes/Month
Traffic Volumes (TB/month)
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Next IP [TM] network - lower unit cost,
scales cost effectively
CAPEX/Sales Ratio (%)
18%
20
18
16
14 10%-12%
12
FY05 FY06 FY07 FY08 FY09 FY10
Legacy network Next IP [TM] network
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IT Systems Out
Nov 07
Note: 1200 systems identified in November ’05: another 150 systems
subsequently identified
# of Legacy Systems
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Industry recognition for our transformation

• Global Telecoms Business Magazine’s 2007 Innovation Award

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• ‘Best Mobile Entertainment’ and ‘Best of Show’ Mobile Media Awards

• ‘Best Telco Transformation’ Telecom Asia Award

• ‘Next Generation Network Service Provider of the Year’ Frost & Sullivan Asia Pacific ICT Award

• Supporting partner for 2007 3G A-List ‘Education’ Award

5

Telstra’s Transformation Program: Presentation Introduction

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Learning Academy Driving improvements into our Operations Stuart Lee
Procurement
Billing Operations
Property
Wireless
Transformation Wireless 3G Enablement providing services city to country Mike Wright
Wireline
Transformation
Building the Next IP network at a lower cost with improved quality Hugh Bradlow
Rationalisation
Network Fixes Driving service quality improvements and productivity Michael Rocca
Benefits Now
IT Transformation Dramatically simplifying our IT environment creating integrated Tom Lamming
systems management and customer experience John McInerney
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6

The Factory Stuart Lee Executive Director Program Office

Telstra Learning Academy

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Trained > 16,000 people
Curriculum library 1,633 courses,
including 169 newly developed
Built 2 new world-class training
facilities (70 locations nationwide)
Equipping our people to leverage
transformed networks and IT
Supporting business transformation
at speed and scale
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1

Smarter procurement reducing costs

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Procurement savings
$129M
Sep 06 to end 06/07
IBM Phase 1: On track for incremental
$500M savings over seven years
IBM Phase 2: Exploring additional
scope and savings
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• Fully leveraging vendor relationships

• Less time managing multiple vendors

• Phase 1 IBM supply chain agreement

• Single company-wide view of all vendor spend

• Automation of sourcing and payment processes

• Consolidating six systems into one

• $500m savings over seven years

• Investigating Phase 2 IBM opportunity:

• Smarter inventory management

• Productivity gains – order, manage and deliver parts more efficiently to field workforce

• Further savings

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Transforming mobile device supply chain
Savings
Brightstar partnership: a major ($m)
source of shareholder value 300
Forecast
Better supply, lead times, stock Actual
control, fulfilment, freight mgt 200
Savings in 06/07 $246M
100
Cumulative savings
$316M
since Oct 05
0
Oct-05 05/06 06/07
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Property rationalisation on track

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Exiting Leases 66
Cost reductions [1] $34.8m
Reduction in space [1] 107,020 m [2]
Artist’s impression of new Brisbane headquarters
Note1: Since 2004/05 in “non-network” portfolio
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Billing & Credit Operations
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Improved bill formatting and
delivery capabilities support MBM
Cost per bill 10%
Billing costs $15M
2.87M Single Bill 16%
Customers
1.1M Online Bill
35%
Registrations
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3

Wireless Update Mike Wright

Executive Director, Wireless

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Nov 2005 Wireless Transformation Strategy

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• Single National City to Country Network

• 850 Mhz Spectrum

• Remove network build duplication and duplicated costs

• A new, lower unit cost platform and dominant technology roadmap

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1

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Wireless Transformation Scorecard

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Build and launch 3G 850 MHz city-to-country Next Oct 2006 G™network � Upgrade to National 14.4 HSDPA and 1.9 HSUPA Feb 2007 � Cell range extension – up to 200 kilometres Feb 2007 � Develop and deploy Next G™Wireless Link Jul 2007 � Next G™network coverage equal to or better Oct 2007 � than CDMA by end 2007 *** At selected sites*

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CDMA network published
coverage footprint
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6000
5000
4000
3000
2000
1000
0
Next G [T M] CDMA
Site Comparison
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Next G™network published coverage footprint

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Published coverage of the next largest 3G network (3GIS) – Next G™network over 100 times larger in area ‘As at October 2006, sourced from Telstra records and competitor coverage maps’

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6000
5000
4000
3000
2000
1000
0
Next G [T M] Optus
3G
Site Comparison
Published Next G™network coverage
Derived from ACMA registrations and Mobile Carrier Forum National Site Archive as at 29 Jun. 07
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6000
5000
4000
3000
2000
1000
0
Next G [T M] Optus Opel
3G WiMax#
Site Comparison
Published Next G™network coverage
Approximate OPEL network coverage as at June 2007
The information included in this map is based in part on information released by DCITA relating to the OPEL network.
Telstra makes no representations as to the accuracy or completeness of the information released by DCITA.
Derived from ACMA registrations and Mobile Carrier Forum National Site A rchive as at 29 Jun. 07
# http://www.optus.com.au/portal/site/aboutoptus/...opel/how will we do it
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More than 120,000 kilometres of drive surveys across Australia

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Networks compared

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Next G™network CDMA network Optus 3G network “Hypothetical”OPEL network [%]
Base Fibre, ADSL2+ and
Stations >6,000 3,480 >2,200 1,361 WiMAX sites [### ]
Coverage >2 Million Sq Km >1.6 Million Sq Km 6,500 Sq Km 638,000 Sq Km [#]
Area > 98.9% population >98% population 55% population 99% population [##]
Speed – peak 14.4 Mbps 2.4 Mbps 3.6 Mbps 6Mbps [#]
& typical user 550 kbps – 3 Mbps 300 - 600 kbps¹ 500 kbps to 1.5 Mbps TBC
Performance Network drop rate of Network drop rate of
less than 1% achieved less than 1% realised
within 10 months of after 6 years of
launch operation
¹ Only available to 49% of the population (>7,600 Sq Kms) # opelnetworks.com.au/ as at 30 Oct. 07
* Derived from ACMA registrations and Mobile Carrier ## DCITA media release 80/07, issued 18 Jun. 07
*** Forum National Site Archive as at 29 Jun. 07in CommsEstimated from Optus 3G coverage maps as at 19 Dec. 06Estimated from coverage maps (as at 19 Dec. 06)and reported Day 15 Aug. 07 ###% http://www.optus.com.au/portal/site/aboutoptus/...opel/ how will we do itCommunications Day, 24 Oct. 07, Peter Ferris
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Roadmap to LTE & 4G
- increased capacity/ lower costs
Meeting demand - incremental network upgrades
Network data usage trends The HSDPA ‘pipe’ – now
14.4Mbps peak - supports
a mix of 1.8 / 3.6 / 7.2
devices simultaneously
Next G™network
The HSDPA ‘pipe’ at launch
– 3.6Mbps peak
EV-DO
2G and others
0
Oct Dec Feb Apr Jun Aug In future HSPA+ will
06 06 07 07 07 07 deliver
Next G™ Higher peak speeds
base station & greater capacity
Network capacity meeting demand
BH Rate [Mbps]
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Telstra’s wireless roadmap

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Yesterday 2008 2009 2010 2011 2013
3GSM (WCDMA)3GSM HSDPA 1 3.6 Mbps peak HSDPA 2 14.4 Mbps peak HSPA+21-28 Mbps� HSPA+42 Mbps� 4xMIMO80Mbps peak 4G1Gbps peak [#]
peak peak (target goal) (target goal)
3G2100 Next G™network ->
LTE [#]
100 Mbps Peak
(target goal)
2GSM GPRS GPRS EDGE Capped
Transforming access to 3G850 + HSDPA
Closure
CDMA CDMA 1xRTT 1xEVDO 2008 Ethernet�
Backhaul
Broadband MBMS/tdTV [#]
DVB-H [#] /
IP Wireless Media Flo [#]
One National Wireless Broadband Service
Current Announced/ Evolution � Network now # new spectrum
Planned Options capable, largely software required
Note: Indicative timing only. This represents future functionality which is subject to change.
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6

Wireline Transformation

Hugh Bradlow Chief Technology Officer

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A Technology Investment for the Future

• Leading Broadband mobile solution

• Carrier grade IP solution

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1

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Customer demand for high quality
broadband services
Wireline Broadband Access
Telepresence,
Triple Play Triple Play Immersive 3D
Web Surfing Gaming SDTV HDTV Environments, etc
Speed 64kbps 256kbps 1.5 Mbps 12 Mbps 25 Mbps 100+ Mbps
Networked Home Teleprescence
^ peak download speeds
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Technology platforms for a high speed future
HFC
250
Melbourne pre-Docsis 3.0 trial
100 Sydney pre-Docsis 3.0 trial XDSL
50
24 HFC: DOCSIS 1.0 to 1.1
ADSL1 to ADSL2+
17
HFC: DOCSIS 1.1 to 3.0
1.5 ADSL2+ to VDSL2
0.512
Nov, 2005 2006 Now 2009+ 2011+
Time
Telstra’s HFC architecture places nodes closer to the home, so fewer customers share bandwidth
Speed (Mbps)
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Next IP[TM] network – investment for the long term, scales cost effectively

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Next IP [TM] Scale Limit
2005 Now 2010 2020 2030+
Time
Traffic
logarithmic scale
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PSTN Transformation

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MSAN Ethernet Softswitch
Aggregation
and IP/MPLS Core
Standard
telephone
handset
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• Deploy first two of five Softswitch pairs by June 30, 2008

• Multi-Service Access Node (MSAN) deployment commences FY2007/08

• Customer migrations commence FY2008/09

• All five Softswitch pairs deployed by June 30, 2009

• Timelines adjusted because FTTN is on hold, pending regulatory reform. PSTN Transformation is proceeding with a revised deployment plan

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3

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Transformation is on-track to cap and exit
a net total of ~65% of network platforms by 2010
400
Maintained for long-term
Investment capped or exited
300
200
Nov,05
100
Now
Dec,10
0
Baseline Caps / Exits Active Inventory Caps / Exits Target Inventory
Achieved Scheduled
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144 platforms capped or exited, since November 2005
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4

Telstra Services

Michael Rocca Group Managing Director, Telstra Services

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Transformation driving service improvements and productivity

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ADSL Field Workforce Cost of Trouble reports
Held Orders Productivity Activation Per 100 SIO
Improvement
since
Nov 2005
Reduced by more Improved by more Reduced by more Reduced by more
than 90% than 20% than 22% than 40%
On time ADSL first call Enhanced Services
Field Revisits
Network Build resolution Commitments met
Improvement
continues
this year
14% above target 9% above target Improved by 28% 8% improvement
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1

Transforming $600m a year contracting model

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Reducing vendor base from
over 175 to three
$75M annualised cash savings
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Improving contact centre effectiveness Number of sites 76% Site-specific activities 41% Staff utilisation 9% >$40M p.a. Staff occupancy 12% in benefits Cross-skilling 81% First Call Resolution 22%

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2

Improving field workforce effectiveness

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Improved processes = less travel =
eliminated roughly 600 tonnes of CO2 emissions
Travel Time Per Task
26.0 0
Tools and equipment
25.50
25.04
25.00 Improved training
Linking & Bundling Focus
24.50
FW Kick Off - Feb Sat-nav, GPS, in-van laptops
24.00 23.39 Improved work dispatch
23.50
23.00 23.13 Improved skills management
22.50
National Optimisation High-speed data access
22.00
Calculated based on reduction of 40,000 hours of driving
Nov-06Dec-06Jan-07Feb-07Mar-07Apr-07May-07Jun-07Jul-07 Aug-07
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Continuing to improve great customer service

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FOH Call Clearance Grade of Service Activation
Appointments Met
Commitment
to our
customers
Improved by 12% 7% Improvement Improved by 5.2%
CSG Activation CSG Assurance CSG Network
Reliability
Other Measures
Achieved 96% 90% Achieved 98% Fault Free
highest ever above target
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3

Transforming Telstra’s IT environment

Tom Lamming John McInerney

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IT Transformation

Simplifying our IT environment to better serve our customers

• Consumer Transformation

• −Focus is to migrate the consumer customers to the new customer care and billing platforms.

• OSS migration

−Focus is to significantly enhance the assurance and fulfilment (OSS) capabilities.

• Enterprise Transformation

• −Focus on billing, managed services and IP based products

• Legacy System Retirement

• −Continue to drive system retirements with focus on years four and five

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Transformation Releases

• First release (TR1) focuses on deploying new customer care, billing and product management systems for our consumer customers

• In Production

• Customer migration commenced – complete June 2008

• Second release (TR2) implements new fulfilment and inventory control and customer service assurance systems for our mobile and BigPond networks

• On track with multiple drops across 08/09

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Delivering Business Benefits

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Oct 2006 Nov 2006 Feb 2007 Mar 2007 Jun 2007
Telstra Retail Integrated
Campaign System Enterprise Program
Management
•Sales strike rates have doubled
Integrated Desktop •Out-of-the-box integrated
program management tool
•60% reduction in log-in times
•22 per cent reduction in time
OnePlan Access
spent on key transactions
•Integrated planning
platform covering Access,
Telstra Service Data centre strategy Transport, Core IP and
Delivery Platform customer networks
•Building new and upgrading
•Delivering wireless content existing facilities
for Next G™products e.g. live & VIC to support IT Transformation
streaming & video on demand •Approximately 4,500 additional
square metres of data processing
& storage space
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2

Consumer Transformation

Enhanced Service Levels

• •Single view of customer by all consultants.

• •Consultants handle multiproduct, multi-purpose calls with a single interaction.

• •Customers interaction history is available to all Consultants

• •Single source of customer interaction data and improved intelligence

Speed of Delivery

Increased Productivity

• •Streamlined processes, fewer repeat activities, more automation

• •Single bill for most products

• •Decreased billing calls

• •Reduced time to handle •Improved effectiveness of

• multi-product orders customer interactions

• •Reduction in agent systems •Single view of customer debt

• log-in time across all accounts

• •Reduction in systems & process •Integrated product catalogue

• training time

• •Better customer intelligence

• •Integrated product catalogue and targeted offers

• reduces time to market for new bundled offers to days from •Real time reporting by Segment, months Channel & Product

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TR1 Program Journey

• 6,000 – 7,000 requirements satisfied Out of the Box, over 2,500 requirements generated for additional functions.

• Fit Assessment

• Design, Build

• Process Re-engineering

• Testing

• Deployment

• Migration

• Over 1000 gaps identified and closed through process re-engineering and selective software enhancement

• • 147 applications, 702 interfaces

• Approx. 4500 sq metres of new or upgraded space across our data centres

• Over 100 Sun E25 servers, plus over 500 other Sun and Intel servers

• 3000 terabytes of storage

• • 344 Level 5 work flows, 274 Level 6 Work Instructions

• Over 66,000 test conditions across testing phases

• Over 5 million customers sourced from 13 legacy systems

• 21,000+ participants; approx. 16,250 internal, 4,750 external, over 830 internal workgroups, over 1280 external sites

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3

Deployment Commenced August ‘07

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• CMP - deployed end of August now
processing all Telstra’s raw event records,
In Production processing 100-120 million per day.
• Mediation Overlay - deployed controlling
routing of call records between legacy
and new systems
Operations Legacy • Legacy Integration - 147 applications and
and Training Integration 702 interfaces deployed in production
• Operations and training - 1 core site, 3
internal satellite sites, 280 Level 5
Mediation Convergent workflows, 40 training modules
Overlay Mediation Platform •
In production 27-28 October 2007 - Live
customer accounts on new platform
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TR1
• Customer data sourced from 13 legacy systems loaded
• Fit Assessment Complete into 2 new systems
• Over 5 million customers
• Design, Build • 21,000+ participants; approx. 16,250 internal, 4,750 external
• Process Re-engineering • Over 830 internal workgroups, over 1280 external sites (Dealers, Telstra Shops, Industry Partners)
• Testing (Dealers, Telstra Shops, Industry Partners)
• Deployment
• Migration
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4

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Key IT Performance Metrics
Production Support & Maintenance (Legacy) Capex Driver - IT
TR1/ 2 build TR1 in production
160 Peak $1.1b
TR2 in production
0
FY06 FY07 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10
Data Centre Operations Savings IT Systems Out
40%
1500
1000
500
0% 0
FY06 FY07 FY08 FY09 FY10 Nov05 FY06 FY07 FY08 FY09 FY10
Financial Year
Note: Future data points are indicative
$ million
# of Legacy Systems
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Transforming Telstra’s IT environment

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5