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CUSTOMER SERVICE THROUGH THICK AND THIN

MIKE WRIGHT

EXECUTIVE DIRECTOR

TELSTRA NETWORKS

9 OCTOBER 2013

THE IMPORTANCE OF NETWORKS

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MOBILES CUSTOMERS* (DOMESTIC)

THE NETWORK CONNECTS MILLIONS ON EXTENSIVE INFRASTRUCTURE

+1,441k

MOBILES CUSTOMERS(CSL)

+425k

PSTN LINES* -287k

FBB CUSTOMERS* +175k

15.3m

3.9m

3.5m

7.8m

* Represents total customers. Retail and wholesale.

WE’VE HAD A CHALLENGING YEAR

Tropical Cyclone Sandra – Lord Howe Island

14 & 15 March

Tropical Cyclone - Rusty

Late February Western Australia

Ex Tropical Cyclone Oswald and Floods

Excessive rain throughout February and March

Victorian Fires Throughout January

Tasmanian Fires

4-6 January 2013

Warrnambool exchange fire

22 November 2012

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5

AN OUTAGE NOWADAYS AFFECTSMORE THAN JUST TELEPHONES

WARRNAMBOOL EXCHANGE FIRE

VICTORIA – NOVEMBER 2012

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WARRNAMBOOL EXCHANGE FIRE

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KEY ACTIONS TAKEN IN RESPONSE TOWARRNAMBOOL EXCHANGE FIRE

• 22 recommendations including permanent restoration of the exchange

• Thermal Imaging of key exchanges

• Changes to power and air conditioning operation

• In building optical fibre diversity Network Deployment Standard

• A review of the number and location of recovery units including Mobile Exchange on Wheels (MEOW) and Cell on Wheels (COW) and Satellite Cell Wheels (Sat COW)

• Enhanced redundancy for Statenet Mobile Radio (SMR)

EX-TROPICAL CYCLONE OSWALD

QUEENSLAND – JANUARY 2013

JANUARY 2013 OUTAGESBRISBANE – ROCKHAMPTON; BRISBANE – TOWNSVILLE

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CAIRNS

TOWNSVILLE

MACKAYMT ISA

BARCALDINE

ROMA

TOOWOOMBA

ROCKHAMPTON

BUNDABERG

MARYBOROUGH

GLADSTONE

BRISBANE

Coastal path

Inland path

“3rd Path”

NORMANTON

CLONCURRY

CHARTERS TOWERS

LYND RIVER

EMERALD

WESTWOOD

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4

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Cable Outages 24–27 Jan 2013

1 Near Bajool 24/01/13 – 30/01/13

2 Near Stanwell 25/01/13 – 26/01/13

3 Near Korenan 26/01/13 – 28/01/13

4 Near Harlin 27/01/13 – 29/01/13

TROPICAL CYCLONE LARRY 2006 (QLD)

‘BLACK SATURDAY’ BUSHFIRES 2009 (VIC)

FLOODS 2011 (QLD)

TROPICAL CYCLONE YASI 2011

SEVERE WEATHER 2012 (WA)

EX-TROPICAL CYCLONE OSWALD & FLOODS 2013 (QLD)

28,000 PSTN services

8,000 PSTN services

23,200 PSTN services

94,000 PSTN services

70,000 PSTN services

438,000 PSTN services

40 mobile base stations

27 mobile base stations

159 mobile base stations

220 mobile base stations

165 mobile base stations

777 mobile base stations

3000 ADSL services

2700 ADSL services

13,600 ADSL services

32,000 ADSL services

20,600 ADSL services

179,000 ADSL services

190 network sites lost mains power

40 network sites lost mains power

375 network sites lost mains power

680 network sites lost mains power

863 network sites lost mains power

1010 network sites lost mains power

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IMPACTS OF RECENT NATURAL DISASTERS

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KEY ACTIONS TAKEN IN RESPONSE TOEX-TROPICAL CYCLONE OSWALD

• Investigation into network resiliency of critical services in Queensland

• Additional transmission paths and third routes built

• Leased third routes that automatically switch to the Telstra network

• ‘Wilt’ feature activated on Telstra mobile network

• Annual national review and audit of the network

WEATHER-INDUCED OPERATIONAL AND CUSTOMER SERVICE CHALLENGES

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FAULT VOLUME COMPARISONYEAR ON YEAR

CUSTOMER SERVICE DELIVERYPRIORITIES

1 SAFETY OF STAFF AND CONTRACTORS

2 Priority Medical assistance

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Network Flexibility

Minimise business risk

FAULTY SERVICES RESTORATION

When conditions, access and safety allow, we assess damage to infrastructure and begin restoring impacted services.

We restore services in this order: •Medical Priority Assist/Regulatory obligations•Network and infrastructure•Contracted Service Level Agreements •Other impacted services

Customers waiting to have new activations connected may be waiting longer than usual.

INSERT TEXT

NEW SERVICE ACTIVATIONS

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IMPACT ON CUSTOMERS

• Telstra services fault levels in March were 5.1 times higher than the long term average

• Up to 300 staff moved around the country

• By the end of June Telstra had fixed more than one million faults in the year for retail and wholesale customers

• Challenge to deliver on our retail and wholesale customer expectations

• We recognise the frustration caused by delays

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TELSTRA OPERATIONS FUNCTION INTO THE FUTURE

• Rebalancing our workforce:

Adding resources in field service area – additional 200 field staff in place in FY2014 as well as additional trained contractor resources.

More flexible, agile and national approach to managing operations workforce.

• The focus of our Operations team remains on delivering high quality service to our all customers.

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NETWORK RELIABILITY IS SOMETHING WE SHOULD ALL BE THINKING ABOUT

THANK YOU