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TELSTRA GROUP LIMITED — Investor Presentation 2011
Nov 17, 2011
65927_rns_2011-11-17_bdcd37d4-bde0-4336-ab1f-56c9efd01f42.pdf
Investor Presentation
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18 November 2011
The Manager
Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary
Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA
General Enquiries 08 8308 1721 Facsimile 03 9632 3215
ELECTRONIC LODGEMENT
Dear Sir or Madam
Investor Day – workshop slide presentations
In accordance with the Listing Rules, I attach a copy of the presentations to be delivered in the afternoon session at Telstra’s Investor Day, for release to the market.
Yours faithfully,
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Carmel Mulhern
Company Secretary
Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556
REALISING THE NETWORK APPLICATIONS & SERVICES OPPORTUNITY
BRENDON RILEY, CHIEF OPERATIONS OFFICER PHILIP JONES, EXECUTIVE DIRECTOR, DIPNAS PAUL MCMANUS, EXECUTIVE DIRECTOR, NAS
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THERE IS ROOM TO GROW OUR MARKET
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Carriage +1% Network Apps & Services +11%
CAGR
Workspace Mgt 36%
Industry Solns 7%
Cloud 20%
Unified 7%
Comms
Managed
Data 10%
Networks
FY11 FY14 FY11 FY14
Leveraging our share in carriage into network applications and services
Source: IDC, 2011
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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TELSTRA’S VALUE PROPOSITION &
DIFFERENTIATION
Breadth of
Network integrated
offers
applications
Deep expertise
Secure intelligent
networks and partnerships
Visibility and Scale and
control reliability
Delivering differentiated customer-centric solutions
3
OUR PRODUCT STRATEGY AND ROADMAP
Discreet
Products
Industry
Converged Solutions
Service Desk Packaged
Products
Multimedia Media
Contact
Centre Video
IaaS SaaS Telephony Video Professional Services Health Education Offerings Bundled
Conferencing
PaaS
Security Unified Network Service Unified Finance
Networking IP Services Intelligence Contextual Networking Federated Clouds UC&C as a Service Delivery Government Integrated Services
Secure Intelligent Cloud Unified Managed Industry Integrated
Networks Services Communications Services Solutions Solutions
Integrating apps and services within the network to deliver connected solutions
4
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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UNMATCHED FUNCTIONAL CAPABILITY
Skilled and competent people
Accreditations, practices and tools
World-class facilities
Global Operations Managed Network
Centre Operations Centre
Hong Kong Telstra Security Operations
NOC Centre
TELSTRA’S RESOURCES ENABLES CUSTOMERS
TO FUTURE PROOF THEIR IP ENVIRONMENTS
ASX top 50 company The relationship escalator
IP Access Escalator • Telstra took over the IP Network migrating over 1000
sites. Network management of over 3,500 switches
and routers.
• Now providing secure remote access for over 3000
IAAS users and supports over 3000 mobile and wireless
Dedicated devices
IP Wireless IP IP MAN, Managed Networks Managed Backup, Recovery, Hosted Utility Dedicated Hosting & Utility • Working to deliver Wireless LAN, IP telephony and UC and contact centre environment
Network Wireless MWAN, Storage
Connect IP, Telstra Solution WAN Secure Mobile
Global IP Data
Time Solving the customer’s pain points
Impact for Telstra • Single point of accountability for telecommunications
• Double digit carriage growth & single digit services – voice, data & equipment
growth in 1 [st] year, increasing in future years • Simplified operational environment and converged
• New opportunities for applications and services future proof IP platform
across our next IP deployment are materialising carriage,
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TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
Customer Value
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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CUSTOMERS ARE INCREASING THEIR NAS
SOLUTION SUITE
AVL Solution Escalator Signet Solution Escalator
Video
Network IP Wireless Wireless IP IP MAN Managed Networks Managed Backup, Recovery, Storage Dedicated Hosted Utility Dedicated Hosting & Utility IAAS NetworkIP IP Wireless TMB WirelessIP Managed NetworksMDN TelephonyTIPT IP ConferencingVVX1500 Telstra
Connect IP, Telstra Solution WAN Ethernet, TID, Connect IP, SIP
Global IP Connect,
Time Time
Customer Benefits SIN Customer Benefits
• 58% increase in service levels to AVL’s major • Video conferencing has shaved a third from the carriage,
wholesale customers travel budget
• Business agility that supports their production • Estimated extra 2000 hours a month from improved 7
cycles connectivity, speed & reliability 7
WE ARE EXECUTING OUR NAS STRATEGY
FY11 DUE SOON
Breadth of Offers Depth & Scale of Capability
Winning with Our Customers Capturing Market Potential
Continually building offers and capability to evolve with our Customers 8
Customer Value
Customer Value
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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DELIVERING SERVICES
TO A CONNECTED HOME
HUGH BRADLOW
CHIEF TECHNOLOGY OFFICER
CONNECTED HOME
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
INFORMATION STORAGE & RETRIEVAL CONTENT ON MULTIPLE DEVICES
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TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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COMMUNICATION
NEXT GENERATION CALLING
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Telstra Corporation: [email protected]
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ENTERTAINMENT
CONVENIENT & SOCIAL
MONITORING & ALARMING
TELSTRA INNOVATION PROJECT – HOME MONITORING
Sensor Alert
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Configure alerts, notifications & Monitor (e.g. live video) from Receive alerts and notifications
automated tasks anywhere using any devices (e.g. intruder).
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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SERVICE DELIVERY & SUPPORT
REMOTE AGENT HELP
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4
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Telstra Corporation: [email protected]
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NOVEMBER 2011
INVESTOR DAY
TELSTRA MOBILE
MIKE WRIGHT & WARWICK BRAY
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TELSTRA & AUSTRALIA’S NUMBER ONE MOBILE NETWORK ENGINEERED FOR DATA
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NEXT G[®] : SINGLE NATIONAL HYBRID HSPA/LTE WBB NETWORK
COVERAGE TO OVER 2.1 MILLION SQ KM AND OVER 99% OF POPULATION
SINGLE ALL IP CORE FOR SIMPLE TRAFFIC MANAGEMENT AND MIGRATIONS
WORLDS FIRST TRIPLE ACCESS CORE
ALL IP TRANSPORT, TRFO REMOVED CIRCUIT CALLING & ENABLED WORLD’S LARGEST HDVOICE FOOTRPINT
POLICY CONTROL ENABLER FOR VALUE BASED DIFFERENTIATION OVER 85% OF CUSTOMERS NOW ON 3G NO INVESTMENT IN 2G CAPACITY ~ 4 YEARS ENABLER FOR REFARMING TO LTE 1800 INVESTOR DAY 2011 MOBILE
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Telstra Corporation: [email protected]
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DEMAND GROWTH CHALLENGES ARE
SIMILAR TO MANY OTHER OPERATORS
Busy hour data throughput doubling every 12 months
Leveraging our Technology
Roadmap TODAY to
manage demand and
maintain user experience
downlink Looking to the future
• ongoing use of standards
evolution & new spectrum
• Increased use of WiFi as
part of home integration
• Use of HETNETS and small
cell technologies where
uplink
appropriate
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INVESTOR DAY 2011 MOBILE 3
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OUR ROADMAP:
DELIVERING WORLD LEADING CAPACITY & PERFORMANCE
4G LTE
2600/700MHz
Speed TBA
4G LTE
1800MHz
2Mbps
HSPA+ DC 40Mbps
HSPA+ 42Mbps^ TODAY
HSDPA 21Mbps^ 1.1Mbps
HSDPA 14.4Mbps^ 550kbps 20Mbps [# ]
3.6Mbps^ 550kbps 8Mbps [# ] 4G LTE
550kbps 3Mbps [# ]
Next G [® ] 1.5Mbps 1Mbps
LAUNCH 10Mbps
Oct 06 HSUPA
HSUPA 5.8Mbps^ eHSPA+ Capability Potential
1.9Mbps^ 300kbps MIMO / Multi Channel
300kbps 3Mbps [# ] 84Mbps / 168Mbps
1Mbps [# ] Typical Speeds TBA
AVAILABLE TODAY
HD Voice QoS Trial IN PLAN
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ROADMAP OPTION
^ 1.9, 3.6, 5.8, 14.4, 21, 42Mbps are technology rated peak downlink and uplink speeds. Typical customer speeds are lower as shown.
4G LTE Speeds: With the Telstra BigPond 4G USB customers can experience typical download speeds of 2Mbps – 40Mbps, and typical upload speeds of 1Mbps – 10Mbps which are initially available in all capital CBD’s (meaning within
5km from GPO) and associated airports, and approximately 80 regional locations (meaning 3km of regional town centre) covering an estimated 40% of the population by EOY11. When outside the 4G/LTE areas your Telstra/Bigpond 4G
#USB will automatically switch over to Telstra’s advanced High Speed Packet Access or HSPA enabled 3G network which is available across more than 2.1M sq km to 99% of the population. 3G HSPA Speeds: With capable devices, typical download speeds are 1.1Mbps – 20Mbps in all capital CBD’s, airports, much of the associated metropolitan areas and many regional and other locations covering more than 60% of the
population. Outside these areas, the remaining metropolitan areas and many other regional and rural locations typical download speeds are 550kbps to 8Mbps covering more than 93% of the population, and elsewhere 550kbps to
3Mbps.Typical customer upload speeds are 300kbps-3Mbps in all capital cities and major regional areas covering more than 90% of the population and elsewhere 300kbps-1Mbps. Note: Actual speeds vary due to factors such as location,
distance from the base station, local terrain, user numbers, hardware & software configuration and download source/upload destination. For details on coverage areas visit: http://www.telstra.com.au/mobile/networks/coverage/ INVESTOR DAY 2011 MOBILE 4
DOWNLOAD
UPLOAD
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Telstra Corporation: [email protected]
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MANAGING DEMAND & COST OF CAPACITY USING AN ADVANCED TECHNOLOGY ROADMAP
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Relative Cost: Hybrid HSPA+/LTE Relative Technology Cost
Index
100
75
50
25
0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 WCDMA HSDPA HSPA+ LTE
(R99)
Index based on Telstra derived network unit costs per MByte (excluding OSS/BSS) * Excludes trends from GPRS & EDGE as not carried on the Next GINVESTOR DAY 2011 MOBILE [®] network 5
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APPROACH TO DIFFERENTIATION
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THE NETWORK ADVANTAGE UNDERPINS OUR APPROACH TO DIFFERENTIATION
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Worth what is paid for
Consideration
Network
Price
Value
Premium
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Past
-
1.7 million new customers in FY 10/11
-
Market share gains
-
• Value premium maintained
Future
-
Increase network advantage
-
Improve customer service
-
Improve consideration
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INVESTOR DAY 2011 MOBILE
Telstra Corporation: [email protected]
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PRODUCT MIX INFLUENCE ON ARPU
ARPU IS MORE INFLUENCED BY PRODUCT PROLIFERATION THAN THE PAST; WE MANAGE ARPU BY PRODUCT & MARKET SEGMENT
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HANDHELD MOBILE BROADBAND FUTURE
MOBILE
POSTPAID PREPAID POSTPAID PREPAID TABLETS M2M PRODUCTS
CONSUMER
BUSINESS
ENTERPRISE
Stayer
Good V Bad
Leaver
changes in ARPU
Joiner
Represents product offered in category 7
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CAUSES OF ARPU PROGRESSION
OUR ARPU DEVELOPMENT HAD DIFFERENT UNDERLYING CAUSES
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ARPU
Postpaid Handheld
• Most of the way through the old to new
transition
•
$62.50 $62.60 $61.90 $60.60 Benefitting from joiners and leavers
$53.90 • Value and price premium in harmony
$48.70
$41.50 Prepaid Handheld
$34.90 • Cap plans improve ARPU
• Recharge denomination advantage
• We are a challenger with low relative ARPU
$15.90 [$15.80 $18.60 $16.80 ]
Mobile Broadband
• MBB revenue growth H2 2011 pcp: 14%
• Mix effects adverse
• Later adopters complement the fixed
Postpaid Handheld Prepaid Handheld Mobile Broadband network
1H10 2H10 1H11 2H11 • Programmes in place for joiners; leavers;
stayers
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-
Most of the way through the old to new transition
-
We are a challenger with low relative ARPU
-
MBB revenue growth H2 2011 pcp: 14%
-
Programmes in place for joiners; leavers; stayers INVESTOR DAY 2011 MOBILE 8
Telstra Corporation: [email protected]
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MOBILE PROFITABILITY
OUR MARGIN IS AN OPPORTUNITY
Opportunity: Handsets
Australian mobile margins low
• Number of events
• Percentage of
recontract
• SIM only
Not revenue related • Plan mix
• Handset mix
Opportunity: Other
• Calls/customer
Cost related • Rework
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INVESTOR DAY 2011 MOBILE
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M2M IS A SIGNIFICANT GROWTH OPPORTUNITY
• 1999: Hype • Transport
The history • 2005: Disappointment • Utilities The verticals
• 2011: Reality (and hype!) • Security
• 2012 connected car
• Long tail
• Ericsson: 50Bn devices • “Value added” resellers drive the
The opportunity • Verizon: 400% penetration market Wholesale
• Machina: 1 .4Bn connected cars • Embedding Next G [®] inside their
products for their customers
Low ARPU •• M2M ARPU < $10 Vertical ARPU fluctuation: •• Global SIM offers emerging Domestic market growing Somewhat local,
� Smart meters < $2 somewhat global
� Digital Signs > $50
• Highest margin mobile product • Next G [® ]
• Low cost • 150+ VARs and partners
High margin • Low churn • Jasper’s global eco system Why Telstra ?
• No device SARCs
By 2020
INVESTOR DAY 2011 MOBILE
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Telstra Corporation: [email protected]
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WE HAVE OPPORTUNITIES IN ALL PRODUCTS AND SEGMENTS
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PRODUCT OPPORTUNITIES AND CHALLENGES
Post paid handheld
Pre paid handheld
Post paid mobile broadband
Pre paid mobile broadband
Network advantage; Marketing; LTE devices
Improved customer service
Online INVESTOR DAY 2011 MOBILE
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CONCLUSIONS
We manage our value premium, price & ARPU closely
Our margin is an opportunity and we are making progress
In each of our 5 products we are winning. The challenges vary by product &
segment (e.g. grow category V market share).
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Telstra Corporation: [email protected]
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- The criTical role of brand markeTing mark buckman – chief markeTing officer
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- Why did We reviTalise The brand? We’re The mosT valued brand… buT We can be even beTTer
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our brand value [1]
rank brand secTor value ‘000m
( )
Telecoms
1 9,700
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| 1 | Telecoms | 9,700 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2 | banking / financial | 7,100 | ||||||||||
| 3 | banking / financial | 5,100 | ||||||||||
| 4 | banking / financial | 4,800 | ||||||||||
| 5 | retail | 4,600 | ||||||||||
| 6 | banking / financial | 3,200 | ||||||||||
| 7 | banking / financial | 3,100 | ||||||||||
| 8 | apparel | 2,200 | ||||||||||
| 9 | 1 | 0 | banking / financial | 1,900 | ||||||||
| 10 | retail | 1,300 |
1. Source: 2009 Interbrand Best Australian Brands study. No other Telcos in top 20 brands.
- Why did We reviTalise The brand? …buT We can be even beTTer
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our brand aTTribuTes
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Network
Network
7.5
7.0
6.5
Community 6.0
Products
Community Products
5.5
5.0
4.5
4.0
Service Relevance
Relevance
Service
Satisfaction
Satisfaction
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- The brand needed To reflecT The changing face of TelsTra and our TransformaTion inTo a sales and markeTing company
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our brand healTh aT sepTember 18, 2011[1] Evangelists Advocacy Purchase Open to Consider Awareness
Awareness of Telstra is strong. The anomaly in our brand pyramid is purchase is greater than consideration. Currently, people buy from us more than they like us – we are making strong progress in bridging the gap. Telstra has changed considerably and we needed people to “Re-think Telstra”. Our aspiration is to drive consideration levels above purchase levels by FY15 without compromising preference.
1. New brand launched September 18, 2011.
When designing The neW idenTiTy, We had To be sure ThaT We represenTed a True reflecTion of TelsTra and our brand essence of connecTion 1. Show and tell people that Telstra is changing: If the culture was becoming more customer centered, so should the brand identity. Customers had to live at the centre of the refreshed brand identity system. It must also engage and inspire employees. 2. Deliver to Telstra’s Brand Essence: Represent the essence of “connection” and make a connection with Telstra’s myriad of customers on a rational and emotional level. Represent the vibrancy and diversity of Telstra’s customers and their lives. 3. Get people to think differently about us: Reverse the perceptions that Telstra is distant, cold, uncaring, expensive, not relevant and not connected to the world of its customers. 4. Connect all our messaging and get rid of fragmented marketing: Cohesive brand experience for customers that is flexible enough to successfully express the brand across the diversity of customers, products, services and media. 5. Make a long term connection: Launch with impact – deliver the disruption that is the first phase of Telstra’s marketing strategy and ensure that the refreshed brand identity is built for the long term.
- iT sTarTs WiTh The full specTrum of colours… logos phoTography specTrum reTail sTore fleeT
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lock-up
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parTner logos
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six dimensions are being benchmarked To drive
consideraTion and saTisfacTion compeTiTively
core brand aTTribuTes
Network
7.5
7.0
6.5
6.0
Community Products
5.5
5.0
4.5
4.0
v
Service Relevance
Satisfaction
Telstra Today Our Aspiration
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brand meTrics are a key driver
in cusTomer saTisfacTion
cusTomer saTisfacTion scores from 01/07/10 – 30/09/11
10
producT
9
Best
8
Average
7
price
Worst
6
5
4
bran d
3
2
1
service 0
Q1 Q2 Q3 Q4 Q1
FY 2010/11 FY 2011/12
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consideraTion for The TelsTra brand has groWn
significanTly folloWing The brand relaunch
80
70
60
50
40
30
20
neW brand New Brand
launch Launch
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY11 FY12 FY13 FY14
Purchase Consideration
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