What is Telstra's ‘Next G™' vision?
In November 2005, Telstra's CEO, Mr Sol Trujillo announced plans to build Australia's largest national third generation 3G city to country mobile network, now called the NextG™ network (technically known as '3GSM 850MHz').
This means Telstra's new third generation mobile network belongs to the GSM family of standards and using the 850MHz radio frequency. This will make Telstra the first telco to deliver 3G across Australia - in both regional and metropolitan areas. The new network reaches 98 per cent of the Australian population and gives customers access to the same high speed mobile technology and services, whether they live in the city or country.

What are the benefits?
Telstra mobile customers across Australia will have access to the same technology and services including:

• A wider range of services - allowing you to do things like make and receive video calls, watch FOXTEL™ by Mobile, access the internet, receive emails and download music as well as the usual voice calls and text messaging available today;
• Better mobile coverage - because we are combining the reach of our existing networks and extending coverage on highways there will be improved depth of coverage and in building coverage once the network is complete;
• Access to Mobile Broadband - allowing users to wirelessly access the internet and corporate networks via PC cards and modems connected to a laptop or PDA; and
• Global Roaming - customers will benefit by being able to access voice and SMS mobile services in more than 140 countries overseas.

But what will I be able to do that I can't do now?
Only at Telstra can you watch your favourite BigPond content - AFL and NRL or V8 Supercars, Australian idol, and chat services on your BigPond internet service and mobile phone.
Additionally, it's about creating one national network that removes the divide between the city and country user experience - allowing customers to move freely around Telstra's national mobile coverage areas and still enjoy the same, latest mobile service. For many customers in regional Australia they will be accessing video services for the first time.

Customers will see the benefits:

• When city-based customers travel in regional areas, they will get significantly improved mobile phone coverage compared to their 2GSM service today
• Country customers will be able to get the latest mobile broadband services including video calling, rich content, music services, and mobile broadband
  
• Additionally, the Next G™ network provides the potential for many people who live in a mobile broadband coverage area, but can't get ADSL, to access a broadband internet service. This is the best chance to ensure mobile broadband services to our rural customers.
  

Why has Telstra selected this direction for their mobile services?
Telstra arrived at this vision following an extensive review of a number of options for the mobile networks Telstra currently operate.

We are excited by the potential of the vision that Telstra has developed to help unite Telstra mobile phone users across Australia, city and country, on the one technology, same upgraded services and future technology advances.

Why couldn't Telstra continue with the networks they currently have?
This approach has allowed us to provide better coverage, faster data speeds, and more services to more Australians.
It doesn't make sense to continue to maintain multiple network technologies all vying for the same investment dollars. Moving from multiple mobile network technologies to one reduces duplication of capital and operating expenditure. Telstra's vision will allow them to take a much more focused approach to investment which means maximising the benefits of any new technologies by making them available to more retail customers.

Why did Telstra select the 3GSM 850MHz technology?
Telstra believes 3GSM is a superior technology path that will provide access to higher speeds (4G) and better applications in the future. 3GSM is part of the GSM family of standards. In terms of global footprint, the GSM world is more than six times bigger than that of the nearest competing wireless technology, with more than 82 per cent share of the digital wireless market (2 billion mobile users globally), and growing, while market share for other wireless technologies continues to decline. Recent technology breakthroughs mean that 3GSM services that are today delivered on the 2100 MHz radio spectrum can now be delivered on the 850 MHz spectrum, which allows delivery over greater distances.

Is 3GSM 850MHz a proven technology?
US carrier Cingular Wireless (54 million subscribers) launched BroadbandConnect, a 3G HSDPA network utilising the 850MHz spectrum in December 2005 in 16 major metropolitan areas. Devices are currently available and being used on this network.
Rogers Wireless, Canada's largest voice and data operator is also deploying a coast to coast 3GSM 850 network. Additionally, Ericsson has confirmed that up to ten other operators are evaluating 3GSM 850 elsewhere in the world, so Telstra is not alone in this choice

Wasn't Telstra already providing 3G services?
Yes, Telstra was already providing 3G services over its 1xEVDO and existing 3GSM networks. The existing 3GSM network works in the 2100 MHz spectrum.

How do I know if I have a CDMA or GSM phone?
The simple test to tell the difference between a CDMA or GSM handset and service is - GSM handsets have a SIM card and CDMA handsets don't.
Customers can confirm it themselves by:

• Removing the back of the phone where the battery is stored;
  
• Taking out the battery: and
  
• Looking for a small rectangular card (called the SIM card).
  
  

Network Features and Benefits

What features and applications will I experience with the Next G™ network?
The Next G™ network supports many exciting new services and applications. Telstra mobile customers across Australia will have access to the same technology and services including:

• A wider range of services - allowing you to make and receive video calls, watch FOXTEL™ by Mobile, manage your photo album and Blog, access the internet, receive emails and download music as well as the usual voice calls and text messaging available today;
  
• Better mobile coverage - because we are combining the reach of our existing networks and extending coverage on highways there will be improved depth of coverage and in building coverage;
  
• Access to Mobile Broadband - Allowing users to wirelessly access the internet and corporate networks via PC cards and modems connected to a laptop or PDA; and
  
• Global Roaming - customers will benefit from access to voice and SMS mobile services in more than 140 countries overseas.
  
  

In addition, business customers will be able to enjoy:

• A wide range of sophisticated business applications aimed at increasing productivity and performance
  
• Business related content including business/ financial news, information and search services, travel services and much more.
  
• Corporate email solutions on new devices with higher data speeds
  
• Video conferencing services with Next G™ mobile phones
  

What are the data speeds (uplink and downlink) of the new network?
At launch, customers with HSDPA (High Speed Downlink Packet Access) capable data cards and modems, will be able to access faster data download speeds (expected user average of 550kbps to 1.5Mbps), on Next G™, bursting up to 3Mbps, with a peak network speed of 3.6Mbps (downlink). HSDPA will provide data speeds three to five times faster than the current 3G2100 network.

In the uplink customers will experience speeds bursting up to 384kbps.
Planned improvements in early 2007 will increase the peak network speed of Next G™ to 14.4Mbps (downlink) further improving the expected download speeds experienced by customers.

As with EVDO today, actual user speeds, both downlink and uplink, will vary depending on user location, network capacity, mobile device used, transmission direction and external constraints (such as the application in use).

Next G™ Content and Applications

What new content is being launched as part of Next G™?
Next G™ is a fast, simple, interactive and content rich wireless broadband and mobile service that integrates the worlds of communication, information and entertainment. Through the Telstra designed 'My Place' menu, Next G™ customers can access the nine most relevant services and applications to them.

With a simple "1-touch, 1-click" from the "My Place" menu, our customers can access FOXTEL™ by Mobile, Sensis® Search, BigPond content, music, email, photos, downloads, maps and My Account information.

In an Australian first, customers can:

• watch FOXTEL by Mobile on their Next G™ handset, with 12 channels including news, sport, wildlife documentaries, and children's programs, with more to come;
  
• access Telstra's award winning BigPond Mobile service offering entertainment, news, and exclusive content including AFL, NRL, and V8 Supercars;
  
• watch Warner Bros. classic movies and the BBC's best television programs on their PCs through the BigPond Movie Download service;
  
• download a music track to both their mobile and computer in 1-click; and
  
• benefit from Telstra's 'locate me' technology which matches their location with their information request through Sensis services such as Citysearch®, Whereis® Mobile, Trading Post and Yellow Mobile.
  

For business customers, Telstra is launching two new applications, Workforce Management with Xora Time Track and Fleet Management with @Road GeoManager, which will help drive productivity and customer service level improvements.

How do I access this new content?
For all Next G™ phones, the My Place launch grid is available as part of the native phone menu making these services an integral part of the handset experience.

This 1-click button gives immediate access to 'My Place' - a specially designed menu which puts customers' most relevant services 1-click away. 'My Place' uses the standard 3x3 phone display grid to take customers to FOXTEL by Mobile, BigPond, Sensis search, BigPond music, email, photos, downloads and My Account details.

Additionally, Telstra has worked with Samsung and ZTE to build an innovative "Telstra" button into its Next G™ handsets.

What new applications are there for business?
The Next G™ network means services such as mobile video calling and video conferencing will be available in more places across Australia and, in some cases, to places that they have not been available previously.

With speeds and coverage almost double that of today's EVDO network, businesses can benefit from greater workforce mobility across more devices. Workers can access critical business applications and data remotely and make real-time decisions while with clients, on the road or away from the office.

Telstra is also launching two new applications, Workforce Management with Xora Time Track and Fleet Management with @Road GeoManager, which will help drive productivity and customer service level improvements.

What business model is Telstra using for content services and how will this drive the stated growth revenue targets of 25 per cent of new revenue from new products?
Telstra is confident it has the right business model in place to grow new product revenues from the Next G™ network. Our unparalleled coverage, speed, content and service ensures we have a strong and long-term competitive advantage with the launch of this new network.

How will Telstra compete in the purchase of new and compelling content when it competes against global telecommunication companies like Vodafone and Hutchinson?
Telstra's scale through multiple platforms (mobile, broadband and Pay TV) will ensure access to relevant global content brands and properties for its customers. This is evidenced today by the extensive music collection available both on mobile and on line (where it is over 600k).

Of course Telstra will lead in local content where its sponsorships and community support mean it is best placed to support local sports, events artists and releases (e.g. AFL)

Will country customers have the same access to content as those in the city?
The Next G™ network removes the mobile divide between city and country, bringing video calling, content and features as well as super-fast mobile Internet services to more Australians than ever before.

How does the location-based technology work and can it be used to track my whereabouts?
When a customer signs-up for updates or conducts a Sensis® Search via My Place or the BigPond portal, location-based technology uses the intelligence in the network to determine the customer's location and respond with the most relevant data to the customer's whereabouts. This is an opt-in service for our customers.

CDMA Network Closure

Why close down the CDMA network?
This is about choosing the best technology path for our customers and Telstra. Telstra is following a focused investment strategy that puts an end to competition between our networks for the same investment dollar.

More than 82% of the world uses GSM-based technology. The Next G™ plan puts all Telstra's retail mobile customers on the same path to new and better technology in the future by taking advantage of economies of scale. CDMA services will remain in place until early 2008 when Telstra's national Next G™ service provides the same or better coverage.

Why don't you let another operator take over the CDMA infrastructure?
Telstra's new network will use much of the existing CDMA infrastructure - towers, huts, even air conditioners.

Telstra will require equipment space in a large number of our huts and exchanges to expand the Next G™ technology into as it grows with voice and the new wireless broadband traffic it will be carrying.

Transmission capacity linking the base station sites into the core network will be recovered and reused for Next G™ growth.

Spectrum that Telstra purchased at auction will need to be recovered in order for the new network to be expanded in capacity.
On an ongoing basis Telstra's recovery of the CDMA equipment will reduce the replication of costs for electricity, air conditioning, core network equipment, maintenance and support fees, device development and testing, replacement and upgrade of the older CDMA hardware which will be reaching 10 years of age in 2008.

The government has spent hundreds of millions of taxpayer dollars providing additional CDMA coverage. How will that investment be preserved under this proposal?
Our contracts with the government are to provide coverage based on our CDMA service. At the time many of these contracts were entered into, the potential of wireless data was barely thought of. However, with the evolution of the Next G™ network we have the opportunity to provide the same or better coverage, a bigger range of services and faster data to our rural customers currently served by the CDMA network.

What will happen to existing CDMA base stations?
Both GSM and CDMA base stations will be enabled to support the Next G™ network. We will operate Next G™ and CDMA services simultaneously during a transition period that will allow us to offer new services to our customers as they move to upgrade to new devices and handsets.
Where there are both existing GSM services and CDMA services on the one tower, these towers will also need to become Next G™ enabled towers.

Analogue Network Closure

Will this be just like the analogue network closure?
This is a very different situation. Due to regulatory reasons there was a fixed date by which the analogue network needed to be closed, over which we had little control, and we had to change over to a completely different system in a contracted time frame. Because we intend running the CDMA and Next G™ networks in parallel for some time customers will still have access to the existing service if there are any delays.

Additionally, the CDMA network coverage was expanded greatly after the closure of the AMPS network, whereas the Next G™ network will provide the same or better coverage prior to the closure of the CDMA network.

Why didn't Telstra install GSM six years ago when the analogue network was forced to close?
Based on the technology available at the time, CDMA provided the best means of addressing coverage issues in rural and regional areas. However, development of Next G™ technology on the same frequency band as CDMA allows us to provide like-for-like coverage, but with the additional features available on Next G™. The lower the frequency, the further the signal can travel.

CDMA Customers

I have a CDMA phone. What will this change mean for me?
CDMA customers can keep using their existing CDMA mobile phone until the changeover is complete and the CDMA network is switched off in early 2008.

Telstra mobile customers wanting to experience the Next G™ service will need to have a compatible handset, a Next G™ SIM card and connection to a compatible Telstra plan. Customers will be able to keep their existing mobile phone number.
Over the next 15 months, Telstra will be communicating with all its CDMA customers and offering great deals to encourage take up of the new service, and help with the transition.

Telstra has an attractive range of mobile handsets, devices, antennas and car kits available and is offering competitive plans to encourage take up of the new service, including subsidised handsets on 24 month contracts.

Any customer on an existing CDMA contract who buys a Next G™ handset and takes up a 24 month mobile plan will have any outstanding Mobile Repayment Options (MRO’s) and/or Early Termination Charges (ETC’s) waived.

CDMA services will remain in place until 2008 when Telstra's national Next G™ service will provide the same or better coverage and services.

I need a new phone now, why would I now choose a CDMA handset?
Although Telstra are closing the CDMA network, it will remain operational until early 2008 as today there are still some areas only covered by the CDMA network in rural and regional areas. Until the Next G™ coverage is the same or better than the coverage provided by CDMA, the CDMA network will remain in place.

Telstra Mobile Broadband and BigPond Wireless Broadband Customers

I recently bought a new Telstra Mobile Broadband / BigPond Wireless Broadband (1xEVDO) service. What does this change mean for me?
As Telstra Mobile Broadband and BigPond Wireless Broadband operate on the CDMA (1xEVDO) network, customers will require new mobile devices to access the Next G™ service once the 1xEVDO network is closed in early 2008.
Customers who have purchased a 1xEVDO Telstra Mobile Broadband or BigPond Wireless Broadband USB modem or PC card on either a casual or contracted plan before 6 October 2006, will be provided with a free HSDPA capable device towards the end of 2007 and before the CDMA network is closed in early 2008.
Devices not included in this offer are Personal Digital Assistants (PDAs), CDMA1X only devices, in-vehicle modems, telemetry devices and laptops with integrated cards.
Telstra will not encourage customer migration to the new network until it is equivalent to or better than today's CDMA 1X in terms of coverage and performance.
Existing Telstra wireless broadband services will remain in place until the Next G™ Network has the same or better mobile coverage and the CDMA network is closed.

What technology will the new Telstra Mobile Broadband and BigPond Wireless Broadband services use?
The Telstra Mobile Broadband service will be provided by High Speed Downlink Packet Access (HSDPA), a feature supported by the Next G™ Network. We will not be retiring 1xEVDO services until we have the same or better coverage and services on the new network, which will have the added benefit of national coverage and international roaming.

GSM Customers

I have a GSM service. What will this change mean for me?
There are no plans to stop operating the current GSM network at this time and it is planned that it will be operational through to 2012. In fact it has been modernised and received an upgraded capability called EDGE (Enhanced Data rates for GSM Evolution) - improving the data speeds currently available via GPRS from approx. 40kbps to 120kbps under EDGE. (A number of GSM handsets are already EDGE-capable)
Existing GSM customers who want to take advantage of the additional coverage and features of the Next G™ service, will need to get a capable handset.

I have a 3G service on the 2100 MHz spectrum. What does this change mean for me?
If you have a 3G service on the 2100 MHz band you will continue to have access to that service in this band at existing locations (major metropolitan areas, Canberra and a limited number of regional centres) with roaming onto the 2GSM network in other areas.
To obtain the full benefits of the Next G™ service, you will need an 850 handset or a multi-band phone which will be available in the first quarter 2007.

Will Telstra continue to rollout standard GSM coverage?
There are currently no plans to initiate major programs to increase GSM coverage as those who need increased coverage will have access to Next G™.

Will Telstra continue to improve GSM depth of coverage?
Telstra will continue to upgrade the GSM network to improve capacity or performance, as required.

If Telstra is upgrading GSM with EDGE, will I still be able to use GPRS on my existing phone?
Yes. The network is intelligent and can recognise if you are using a GPRS or EDGE-based handset.

What is Wireless Local Loop and who uses it?
CDMA Wireless Local Loop (WLL) provides a standard home telephone service to customers who are out of range of the regular PSTN (public switched telephone network) also called the 'fixed line' which is delivered over the copper wires.
These customers can be in remote areas or at locations where it is difficult to provide a telephone service. WLL uses the CDMA mobile phone network to transport the signal back to the telephone exchange.

What about customers that use CDMA Wireless Local Loop (WLL) for their fixed-line services? What options do you have for them?
Telstra will be upgrading existing CDMA WLL customers to a WLL system that operates over the new Next G™ network. Telstra will begin to contact customers about the migration in mid 2007.
One of the benefits of this upgrade to these customers will be the availability of wireless broadband via the WLL terminal.
CDMA services will remain in place until 2008 when Telstra's national Next G™ service will provide the same or better coverage and services.

There have been recent improvements to CDMA WLL services. How do you know we won't be back to square one with a replacement technology?
CDMA services will remain in place until 2008 when Telstra's national Next G™ service provides the same or better coverage and services.
Telstra has formed a WLL users reference group, this group will field trial the new technology prior to release in mid 2007 to ensure it meets customer requirements. The field trial is expected to commence mid December 2006.

I have a hearing impairment and CDMA provides less interference with my hearing aid/cochlear implant. What will the Next G™ services do?
Telstra has tested the new network for interference with hearing aid devices and the results are very positive. The National Acoustics Laboratory found that the Next G™ Network should provide an even better experience than the existing CDMA network for people who rely on hearing aids or cochlear implants.
Hearing aid or cochlear implant users who rely on CDMA mobile phones will be able to keep using their existing service at least until the end of 2007. Customers in this situation in fringe coverage areas may wish to postpone upgrading their handsets until mid 2007 when the new network will match or exceed the coverage of the CDMA network. However, if you are in one of the many areas that already has Next G™ coverage and you wish to or need to get a new mobile any time from now on then Telstra's new Next G™ network should be your choice. Telstra will be offering attractive deals to enable CDMA users to upgrade to the new Next G™ Network.

How will Telstra help customers on low-income or infrequent users?
While not immediately available at launch, Telstra will be offering pre-paid service options on the new Next G™ network in the future.

How will the Next G™ service affect deaf customers?
SMS and MMS are of course available immediately on the new Next G™ network, as is video-messaging and video-calling. However, it is a matter for ongoing assessment by Deaf customers whether the current technology is adequate for AUSLAN communication. Telstra's investment in the new Next G™ Network is ongoing and will lead to higher data speeds and better quality video-calls in the next couple of years.

How will Next G™ affect blind customers?
The use of "Talk" software running under the Symbian operating system for the new handsets has not yet been investigated. Telstra will keep peak organisations for the Blind updated on this issue.

How much will a new Next G™ handset cost?
Telstra will be offering its customers attractive and competitive plans to encourage them to connect to the Next G™ service, including offers like subsidised handsets on 24 month contracts.