Meeting customer needs

Telstra introduced their Next G™ mobile broadband network in October 2006, responding to customer needs identified as part of the MBM approach. The Next G™ network offers three core value propositions to address a range of customer needs: coverage, speed and simplicity.

Coverage

In a vast country like Australia, coverage was important for many of Telstra's customers. The Telstra Next G™ network is 100 times larger than any other 3G network in Australia reaching 99 percent of Australians. More customers can be connected in more ways and in more places than ever before. The value of improved coverage to a customer depends on the customer. It might be connecting to a friend or family member in a remote area or managing to conduct business and reach a customer while on the road.

It is important to note that as with any mobile network, coverage on the Next G™ network depends on where a person is, what particular handset that person is using and whether that handset has an external antenna attached.

Speed

In terms of speed, the Telstra Next G™ network has a theoretical maximum speed of more than fifty times faster than standard dial-up which means many Australians can access and download a large array of content via a Next G™ mobile phone or Next G™ BigPond® wireless cardThis is important in an information society and for many home-based businesses andtelecommuters. The value of speed could be downloading faster in a business environment therefore increasing productivity and reducing costs.

Simplicity

The Next G™ network provides customers with a simple, streamlined service for their telecommunication requirements providing easy access to entertainment such as Mobile FOXTEL from Telstra, BigPond® music, BigPond® photos and information (including BigPond® Mobile Services, CitySearch® Mobile e-mail and Sensis® search). This is all done through a customer's mobile phone with one click on their 'My Place'™ menu tab. Simplicity is an important value which enables customers to enjoy streamlined customer experience whatever product or service is used.

Telstra's Unique Selling Point (USP) for its Next G™ network is that it offers Australia's largest and fastest national 3G mobile network- unparalleled by any of its competitors. In such a competitive environment, differentiation from rival companies is essential.

Through this innovative service, Telstra has gone from 0 to 44 percent of Australia's 3G market in two years, succeeding against various global operators in a highly competitive market.

Telstra now has the second highest percentage of customers on 3G in the world. By fiscal 2010, Telstra expects that between 50 and 70 percent of its customers will be using 3G services.