TELSTRA AUSTRALIA 4G HSPA+ & LTE

EXECUTIVE DIRECTOR NETWORKS & ACCESS TECHNOLOGIES, MIKE WRIGHT

TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4

AUSTRALIA IN CONTEXT

SIMILAR LANDMASS TO THE USA WITH ONLY 7% of the POPULTION @ 22M US SYLE CAPITAL CITIES PLUS HUGE LOW DENSITY RURAL & OUTBACK AREAS

WITH DATA USAGE DOUBLING APPROX EVERY 12 MONTHS

AUSTRALIAS NUMBER ONE MOBILE NETWORK ENGINEERED FOR DATA

ADDED 1.7 MILLION CUSTOMERS IN 12 MONTHS

14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0

2007

2008
3G services

2009

2010

2011

Total mobile SIOs

EXTENSIVE COVERAGE AND SPEED CAUSED RAPID 3G TAKE-UP FROM LAUNCH OF NEXT G NETWORK

~85% of Customer Base is 3G

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TELSTRAS WIRELESS TRANSFORMATION STRATEGY COMMENCED IN 2005

Starting point of 2G, 3G & CDMA networks, confused customer messages, diluted investments and multiple technology roadmaps
Strategy to move to a single, national city to country network, single investment 850 MHz spectrum, 100% HSPA Remove network build duplication and duplicated costs

Built on a new, lower unit cost platform and globally-dominant technology roadmap
Engineered for unique Australian conditions, High density cities with remote outback

TELSTRA & AUSTRALIAS NUMBER ONE MOBILE NETWORK ENGINEERED FOR DATA
FIXED AND MOBILE PRODUCTS AND SERVICES, 8.4 MILLION FIXED AND 12.2 MILLION MOBILE

SINGLE NATIONAL Hybrid HSPA/LTE WBB NETWORK NEXT G

NATIONAL IP CORE FOR FIXED & MOBILE WITH ETHERNET TO 90% pops & High BW to >93% COVERAGE TO OVER 2.1 MILLION SQ KM AND OVER 99% OF POPULATION

+17% customer growth in 12 months to 30 June 2011

Over 85% of service are now 3G Over 100% p.a. Data volume growth for past 5 years
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LEADING TECHNOLOGY ROADMAPS : Engineered for performance and capacity growth

EXTENSIVE FIBRE BASED BACKHAUL: GIGA-BIT CAPABLE FOR DEMAND & TECHNOLOGY

Remote Radio backhaul EAN Alcatel / Lucent 7450 Next G Next G Broadband BRAS Broadband NGSDH/ SDH

RNC

EAN MSE Co-locate

Tellabs 8860

RNC

BRAS

Ethernet

NEXT-IP

NEXT-IP
Cisco CRS-1 Core router

FAE

Ethernet

FAE

Ethernet

FAE

Ethernet

FAE

^ 100Mbps refers to the network backhaul capacity. Actual customer speeds are lower.

Metro

Regional

OUR ROADMAP: DELIVERING WORLD LEADING CAPACITY & PERFORMANCE

4G LTE 2600/700MHz Speed TBA 4G LTE 1800MHz 2Mbps 40Mbps*

HSPA+ DC 42Mbps^ HSPA+ DOWNLOAD HSDPA 21Mbps^ 1.1Mbps 20Mbps# 550kbps 14.4Mbps^ # HSDPA 550kbps 8Mbps 3.6Mbps^ 3Mbps# 550kbps Next G 1.5Mbps
LAUNCH October 2006

TODAY

4G LTE 1Mbps 10Mbps*

eHSPA+ Capability Potential MIMO / Multi Channel 84Mbps / 168Mbps Typical Speeds TBA
AVAILABLE TODAY

UPLOAD

HSUPA HSUPA 5.8Mbps^ 1.9Mbps^ 300kbps 300kbps 3Mbps# 1Mbps#

QoS Trial

IN PLAN

2005

2006

2007

2008 2009

2010 2011 2012

2013

2014 2015

ROADMAP OPTION

^ 1.9, 5.8, 7.2, 14.4, 21, 42Mbps are technology rated peak downlink and uplink speeds. Typical customer speeds are lower as shown. * 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 CBDs
(meaning within 5km from GPO) and associated airports, and approximately 80 regional locations (meaning 3km of regional town centre) covering more than 40% of the population by the end of 2011. When outside the 4G/LTE areas your Telstra/Bigpond 4G USB will automatically switch over to Telstras 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. # With capable devices, typical download speeds are 1.1Mbps 20Mbps in all capital CBDs, 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 93% of the population and elsewhere 300kbps-1Mbps. Note: Actual speeds vary due to factors such as distance from the base station, local terrain, user numbers, hardware & software configuration and download source/upload destination.

TELSTRAS NEXT G NETWORK FASTER IN MORE PLACES & TO MORE PEOPLE

40%

2Mbps-40Mbps
Typical User Speed Range s Mbps

1Mbps-10Mbps

60%

1.1Mbps-20Mbps

550kbps-8Mbps
300kbps-3.0Mbps (90%)

550kbps-3Mbps
300kbps-1.0Mbps

93%

99%

Percentage Population at these user speeds

Actual speeds vary due to factors such as distance from the base station, local terrain, user numbers, hardware and software configuration and download source/upload destination.

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SINGLE IP BASED 2G/3G CORE WITH MIGRATION TO BLADE CLUSTER

2008 Introduce blade into first pools

2009
Increase blades & load

2010/11

Finalise Blade only architecture

QLD Pool
MSC-S x 4

WA Pool
MSC-S x 3

SA / NT Pool
MSC-S x 3

NSW Pool
MSC-S x 4 2 x MSS Blade Cluster

MSC-S x 4

MSS Blade Cluster

2 x MSS Blade Cluster

VIC/TAS Pool

New National Pool

MEDIA GATEWAYS MSC BLADE SERVER POOL TRANSCODER FREE OPERATION WORLDs LARGEST W-AMR HD VOICE FOOTPRINT

SPECIALISED TOOL DEVIL TO MANAGE CELL LEVEL USER EXPERIENCE

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SATELLITE CELLS ANOTHER STORY

3G Satellite NodeB capability, Mobile & WBB for Emergency & Remote applications 512kbps-8Mbps Sat links
Dedicated Sat RNC

Sat Modem

Sat Modem

Ethernet Aggregation

Bandwidth Contention: QoS Policing enforced in the Sat modems

Mobile Core

Satellite Solutions:
Portable Satellite Kit
-Lightweight, can be delivered via air

Trailer-mounted Satellite-Cell
- Cut-down version of a normal Cell on Wheels

Standard Quick-Cell
- Normal Cell on Wheels (CoW)

Setup in 90 minutes

Permanent Sites
- Standard Sites where terrestrial transmission cannot be deployed.
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RESTORING SERIVE AFTER CYCLONE YASI

A Sat COW (satellite cell on wheels) is immediately deployed From Sydney to Cairns via a Boeing 767, then chartered light aircraft to Palm Island arriving late afternoon

...travelling the same distance between Barcelona and Moscow

Mobile base station

By 10.30pm that night, Next G service is restored to the island community

A services view of performance, not just alarms

ACME

100000

150000

200000

250000

300000

350000

400000

450000

50000 c

0 pmNoRabEstablishAttemptPacketInte ractiveHs pmNoRabEstablishAttemptPacketInte ractiveEul pmNoRabEstablishAttemptPacketInte ractive

NEW FEATURES SETS EG URA_PCH AND DTX SET TO IMPROVE CAPACITY & PERFORMANCE

20 11 20 -0 9 11 -1 9 20 -0 9 0 0 -1 :0 11 9 0 20 -0 9 0 3 -1 :0 11 9 0 20 -0 9 0 6 11 -1 :0 9 0 20 -0 9 0 9 11 -1 :0 9 0 20 -0 9 1 2 -1 :0 11 9 0 20 -0 9 1 5 -1 :0 11 9 0 20 -0 9 1 8 11 -1 :0 9 0 20 -0 9 2 1 11 -2 :0 0 0 20 -0 9 0 0 -2 :0 11 0 0 20 -0 9 0 3 11 -2 :0 0 0 20 -0 9 0 6 11 -2 :0 0 0 20 -0 9 0 9 -2 :0 11 0 0 20 -0 9 1 2 11 -2 :0 0 0 20 -0 9 1 5 11 -2 :0 -0 0 1 0 9- 8 20 :0 0 21 :0 0

Large reduction in the number of PS RAB establishments Graph shows Mon/Tues sept 19-20

HANDSET GRIP TESTING PAST ~ 5 YEARS OPTIMISING USER & NETWORK PERFORMANCE
HANDSETS RATED BY GRIP & ANTENNA PERFORMANCE: Performance rated A, B or C Best rated handsets get the prestigious BLUE TICK Top rated handsets perform better in Rural and Indoors Better handsets mean better network performance, efficiency & capacity investment. This becomes more important as we move to LTE and MIMO

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MANAGING DEMAND & COST OF CAPACITY USING AN ADVANCED TECHNOLOGY ROADMAP

2006
HSPA 3.6 M

2007

2008

2009

2010
DC HSPA+ 42 M*

2011
LTE 1800 MHz

HSDPA 14.4 M*

HSPA+ 21 M*

REFARMED 850 MHz CLOSED CDMA

REFARMED 2G 1800 MHz

* Telstra derived network unit costs per MByte (excluding OSS/BSS)

Comparable theoretical capex to meet forecast demand using these technologies only
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* World First Deployments Theoretical network peak speeds, actual user speeds are slower

TELSTRA HAS A LONG HISTORY OF REFARMING SPECTRUM

3GPP Evolution Path for Telstra

1987
1993 2000 2007 2011/12

850 MHz 900 MHz 1800 MHz 2100 MHz

AMPS

CDMA

3G & HSPA Evolution

2GSM

2GSM

LTE

3G & HSPA Evolution

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PERFORMANCE OF LTE IN 1800 SPECTRUM

1800 MHz propagation superior to 2100 MHz Tower mounted Radio units increase power output and sensitivity improve coverage LTE throughput performs well to edge of cell 1800 MHz LTE built on a 2G 1800 or 3G 2100 Grid plan will cover and perform well

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SUPPLEMENTING BIG SITES WITH LTE CAPACITY

Shepparton R/T 40 Cell Site HSPA+ 6 Sector Configuration Now Enabled with LTE 1800 MHz (Data throughput site = 155.75Gbits/hr)

1800 LTE

1800 LTE

1800 LTE

1800 LTE

1800 LTE

1800 LTE

LTE

HSPA+
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IN-BUILDING PERFORMANCE WITH MIMO

MIMO In-Building Cabling

Substantial speed (and capacity) uplift with MIMO IBC vs conventional SIMO (IBC costs and load need to be considered though before wide scale use) Now Enabled with LTE 1800 MHz
*MIMO Configuration with 15 MHz carrier B/W
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LTE 1800 MHZ DEVICES ARE REAL

Sierra Data Dongle NOW LAUNCHED

GSA REPORTS: 35 LTE deployments across the world Forecasts over 100 launches by the end of 2012 Seven LTE1800 networks now commercially launched

HTC LTE/HSPA+ 2012

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A Hybrid HSPA/LTE Architecture for a today & the future

GSM Migration to 3G GSM1800

LTE

WCDMA

GSM

WCDMA

LTE

Future
700 (Digital Dividend) 850 900 1800 2100

Future
2600 MHz

Sierra LTE/DC-HSPA Modem 2011, Smart-Phones estimated 2012

Re-Farm 1800 MHz With 2G traffic migration to HSPA

DC-HSPA Smartphone 2011

Major Regional Traffic Centres

1800MHz LTE

CBDs LTE 1800 MHz

DC-HSPA 42/84* Mbps HSPA+ 21 Mbps

Traditional HSPA/ HSPA+ devices

2nd Carrier Capacity & DC

1st Carrier (coverage layer + 2100 Capacity)

Continue DC-HSPA (42 Mbps) expansion with load, evolve Network to 84 Mbps for rural performance upgrade in selected areas

Voice Fall-back to 3G layer in short to medium term

Speed references are peak network speeds for which the technology is rated. Actual speeds are lower.

WHAT NEXT ?

Continue to grow the 1800 MHz LTE ecosystem

Continue to grow HSPA+ with 84 Mbps (DC+MIMO) evolution Pursue future Asia Pacific LTE Bands (2600 & 700 MHz) Evolve to IMS Voice on LTE when the ecosystem is right Work to improve device performance and interactions with networks as we move into MIMO

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