Market environment (1/2)

Key factors Political Key characteristics A stable political background, advanced regulatory and legal environment, provides favourable business climate Labor and the Coalition each won 72 seats in the 150-seat House of representatives, four short of the requirement for majority government, resulting in the first hung parliament since the 1940 election. Support from independent candidates allowed Labor to form a minority government Economic The Australian economic growth rate stood at approximately 1.3% in 2009 down from 2.3% in 2008 The Reserve Bank of Australia has started to raise interest rates in October 2009 and the government has begun to withdraw fiscal stimulus Impact on the telecom market Favorable conditions for telecom market to thrive With the Labor party in power, it would push for its broadband policy, which would extend high-speed internet provision to 93% of the population at a cost of AUD 43 billion (~USD 37 billion)

Contraction in the economy is expected to lower consumer spending, impacting the liquidity of operators limiting their spend on infrastructure With drawl of fiscal stimulus put additional pressure on consumers limiting their spend on telecom services

Australia Mobile Market Overview

Copyright 2010 Deloitte Development LLC. All rights reserved.

Market environment (2/2)

Key factors Social Key characteristics With a population of just under 22 million, the domestic consumer base is small by regional standards Impact on the telecom market With mobile penetration over 100%, the market is in a saturated stage

Australia is witnessing an aging of its population Applications that are of relevance to an older with 67.9% of its population being over the age population are areas in which the of 15 (2010) telecommunications sector is likely to focus in the long term of the forecast period Australia has 18.6% its population below the age of 14 (2010) Technological The introduction of 3G and the successful deployment of services based on this technology have pushed the industry forward Government plans to establish a new public/private company to oversee the development of a National Broadband Network (NBN) The government has dedicated AUD 60 million (USD 38.4 million) for the development of regional, rural and remote telecoms projects; satellite and wireless broadband networks Regulatory Mature and highly competitive mobile market, with a well-established independent regulator Highly competitive mobile market has reduced the cost of obtaining telecom services and thereby the market has witnessed increasing adoption of telecom services
Copyright 2010 Deloitte Development LLC. All rights reserved.

Young population in Australia could drive up the use of data and internet telecom services Introduction of 3G has completely changed the market dynamics of mobile communications, operators are heavily focusing on VAS and improving QoS levels An increased focus from Government to promote broadband leads to opportunities for the vendors to leverage their solutions

Australia Mobile Market Overview