Test Paper

In Australia, Optus is a strong number two operator and one of the most recognized brands in the market. In the current financial year, Optus grew its customer base and maintained its scale position in a highly-competitive mobile market. In fixed line, Optus successfully grew its on-net customers in both the consumer and business segments and lifted its EBITDA margin.

Optus continues to be focused on delivering sustainable revenue and profit growth. In the next financial year, operating revenue is expected to grow at single-digit level. This will be driven by mobile and wireless broadband services which leverage on the expansion of Optus’ 3G HSPA network rollout to 98% population coverage. With its exit from unprofitable fixed line resale services, Optus’ consumer fixed line revenue is expected to decline.

EBITDA and free cash flow are expected to grow, in line with higher revenue. Capital expenditure as a percentage of revenue will be at mid-teens level and includes mobile coverage and capacity expansion as well as Optus’ D3 satellite.

Mobile Communications continued to be the largest revenue stream, contributing 40% to the Group’s revenue. National Telephone revenue declined 5.8% and contributed 14% to total revenue, down 2.5 percentage points from the same quarter last year. This decline was attributable mainly to fixed to mobile substitution, as well as Optus’ exit strategy for its fixed line resale business (Singtel Financial Report 2008)

Using a fibre optic network which connects Australia’s main cities together, Optus provides a range of products and services covering:

Voice

Data and IP

ICT Solutions

Satellite

Mobile

Optus also provides services

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