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									TELSTRA CORPORATION LIMITED

      ABN 33 051 775 556


INDUSTRY DEVELOPMENT PLAN
          2000-2001
1. PERIOD OF THE PLAN                                   2

2. STATEMENT OF OWNERSHIP                               2

3. STRATEGIC STATEMENT                                  2

 3.1   Description of Business                          2

 3.2   Telstra’s Vision                                 3


4. TELECOMMUNICATIONS & INFORMATION TECHNOLOGY
PROCUREMENT                                             3

5. INDUSTRY DEVELOPMENT OBJECTIVES AND COMMITMENTS      4

 5.1   STRATEGIC COMMERCIAL RELATIONSHIPS               4

 5.2   EQUIPMENT FOR USE BY PEOPLE WITH DISABILITIES    9

 5.3   RESEARCH AND DEVELOPMENT                        10

 5.4   EXPORT PLANS                                    15

 5.5   EMPLOYMENT                                      16

 5.6   TRAINING                                        16


6. REPORTING AND CONSULTATION                          17




                                 1
1.        PERIOD OF THE PLAN

Part 2 of Schedule 1 to the Telecommunications Act 1997, requires Telstra as a carrier to have an
Industry Development Plan. The purpose of the Plan is to demonstrate Telstra‟s commitment to the
development of industries involved in the manufacture, development or supply of
telecommunications equipment and services and to related research and development activities.

This document represents Telstra‟s third Industry Development Plan and is a blueprint for the
support and development of Australia‟s supply industries for the period 1 July 2000 to 30 June
2001.


2.        STATEMENT OF OWNERSHIP

The current ownership structure of Telstra, including details of related parent and subsidiary
companies, are detailed in the Financial Statements in Telstra's Annual Report 1999.

On 5 July 1999, the Telstra (Further Dilution of Public Ownership) Act 1999 received Royal
Assent. The Act amended the Telstra Corporation Act 1991 to permit the Commonwealth to sell a
further 16.6 percent of Telstra's shares. Following the sale process the Commonwealth Government
has retained ownership of 50.1 percent of Telstra's issued shares.


3.        STRATEGIC STATEMENT


3.1       Description of Business

Telstra is Australia‟s leading telecommunications and information services company and one of
Australia‟s largest corporations. Telstra offers a full range of communications services and
competes in all telecommunications markets throughout Australia. Telstra‟s main business
activities are to provide:
         telephone lines to homes and businesses;
         local and long distance telephone calls in Australia and international calls to and from
          Australia;
         mobile telecommunications services;
         a comprehensive range of data, Internet and on-line services;
         wholesale services to other carriers and carriage service providers;
         telephone directories (White Pages and Yellow Pages); and
         pay television services through an affiliate.




                                                   2
3.2    Telstra’s Vision

Telstra‟s vision is to enhance our position as Australia‟s leading full-service telecommunications
and information services company, and to continue to expand our presence internationally.



4.     TELECOMMUNICATIONS & INFORMATION TECHNOLOGY
       PROCUREMENT

       Over the next year Telstra will be investing in a number of capital projects. Key business
       and customer benefits flowing from the capital investment program are:

             Meeting customer demand, faster installation and lower fault rates to meet Customer
              Service Guarantee requirements through CAN investment
             New products and services for both the business and residential markets, especially
              associated with the Internet and telstra.com, and mobile information services
             RATE (Remote Australia Telecommunications Enhancement) program and the
              Universal Service Plan
             Customer growth in the GSM and CDMA Mobiles networks
             Data Mode of Operation (DMO) infrastructure and services
             Payphones modernisation and security
             International Points of Presence strategy and Cable capacity
             Olympics Millennium telecommunications infrastructure
             Internal business support infrastructures such as enhanced financial and operational
              IT systems
             Equity injections to key subsidiary and venture companies
             Mandatory investments to support licence conditions, government policy and
              regulatory requirements




                                                3
5.    INDUSTRY DEVELOPMENT OBJECTIVES AND COMMITMENTS

      Telstra's investment in infrastructure, products and services plays an important role in the
      development of the Australian economy and the information technology and
      communications industries.

      Telstra's industry development objectives are focussed on giving Telstra‟s customers world
      leading communication products and services and fostering an environment for local
      industry to achieve world class value, world class products and services, and high value-
      added design and development. Telstra‟s industry development activities provide
      encouragement and support for:

            The development of niche market products and services;

            Industry wide growth in sales with less reliance on the domestic market; and

            Technology leadership.

      Telstra‟s joint commitment over the next year against each of the requirements of the
      Telecommunications Act 1997 (“the Act”), taking into account its planned strategic
      directions, is outlined below. The approach taken quotes the Act followed by details of
      Telstra‟s planned actions and commitments.



5.1   STRATEGIC COMMERCIAL RELATIONSHIPS
      (2)“THE PLAN MUST INCLUDE ANY RELEVANT PARTICULARS OF THE CARRIER’S STRATEGIC
      COMMERCIAL RELATIONSHIPS, INCLUDING (BUT NOT LIMITED TO):
      (a) THE CARRIER’S RELATIONSHIPS IN CONNECTION WITH THE PRODUCTION AND SUPPLY
      OF FACILITIES AND
      (b) THE CARRIER’S RELATIONSHIPS IN CONNECTION WITH INVESTMENT IN, AND
      DEVELOPMENT OF, AUSTRALIAN MANUFACTURING AND SUPPLY CAPABILITIES.



      Traditionally, Telstra's core focus on fixed line telephony meant that its industry
      development was dominated by major network and IT modernisation programs such as the
      future Mode of Operation (FMO) introduction of digital switching and transmission. Today,
      with a much broader focus, many parts of Telstra play a part in industry interface. Examples
      abound and include content deals, applications development for telstra.com, construction
      activities, Telstra Shop franchises, Corporate & Enterprise bids in conjunction with vendors,
      mobile dealerships, Yellow Pages/White Pages vendors, equity investments and joint
      ventures.

      Telstra will continue to establish term contracts with its suppliers when there is a continuing
      predictable and significant demand for a product. Where this occurs, a Product Sourcing
      Agreement (PSA) will be entered into. A PSA establishes formal ordering and forecasting
      processes to enable both the supplier and Telstra to benefit from better management of the
      supply chain. PSAs provide a framework in which specific purchases and quantities can be
      established and provide an avenue for mutual discussion and consultation on an ongoing
      basis. They also augment the development of new products and services.



                                               4
Telstra will continue to actively encourage local industry by direct purchase or through sub
contracts with major suppliers. Australian companies will compete for Telstra contracts in
open competition with global suppliers. Telstra‟s policy is to purchase products and services
from Australian based suppliers where these meet Telstra‟s competitive and market
requirements in terms of price, quality, availability and reliability. Telstra will purchase
products and services that comply with suitable international standards and continue to
participate and contribute to international standards setting.

The outsourcing of functions previously performed exclusively within Telstra is now a
significant part of Telstra‟s program of improved efficiency, with vendors now working in a
much more integrated end-to-end process with Telstra Business Units. These changed ways
of working mean that there has been strong growth in the number of opportunities for
vendors to work with Telstra in delivering products and services to customers.

Advantra and Desktop Services

Advantra Pty Ltd was originally formed through an alliance between Telstra, IBM Australia
and Lend Lease. However in May 2000 Advantra Pty Ltd became a wholly owned
subsidiary of Telstra. Advantra is a dedicated IT&T infrastructure services company that
designs, implements and manages infrastructure solutions for a broad range of customers
including Commonwealth and various State Governments, Qantas, Colonial, State Bank,
Norwich Union and Mayne Nickless. Advantra also manages AT&T's Global Network
within Australia.

Telstra has contracted Advantra Pty Limited to take over the delivery of Telstra's desktop
services. In order to ensure that Telstra's regional IT functions are not diminished, Advantra
Pty Limited has committed to offering equivalent positions to all Telstra employees who
currently fall within the scope of the proposed contract and are based in regional areas.
These regionally based employees will remain at their current locations if they accept an
offer of employment from Advantra.

Advantra is also committed to supporting SMEs that operate within the IT&T market.
Advantra supports these enterprises by identifying them as preferred suppliers of products
and services, and as a result has engaged a number of SMEs in sub-contracting relationships.

IBM Global Services Australia in Ballarat

IBM Global Services Australia (IBM GSA), a joint venture with Lend Lease and Telstra, has
contributed to regional development in Australia, particularly in Ballarat. Through an
affiliation with the Ballarat University, IBM GSA employs over 160 full time Information
Technology professionals, with approximately 100 of these positions going to students from
the Ballarat University.

Over the past four years, IBM GSA funded over twenty student scholarships at the
University of Ballarat and has also funded the University's Chair of Computing position, to
the value of $500,000. IBM GSA maintains industry representation on the Ballarat
University IT curriculum board bringing a breadth of international knowledge.




                                         5
The recent development of the IBM GSA Transport Centre of Competency services a broad
range of national customers from its base in Ballarat. There are plans in place to open an
IBM e-business research and development workplace at the Southern Region Data Centre in
Ballarat. The workplace will bring together University students and IBM GSA mentors to
solve issues and develop possible community based e-business projects. IBM GSA
commitment to youth in regional Australia is demonstrated in the development of a world
class Internet Service Centre also located at Ballarat. The centre offers students the
opportunity of employment and recognition of credit points for their tertiary curriculum.

Retail Partnerships

In November 1999, Telstra announced the introduction of a licensed stores program that will
enable independent retailers to own and operate a communications business using the
leading Telstra brand name. Under the licence arrangement, independent retailers can
purchase communications and IT merchandise at negotiated Telstra rates and are permitted
to operate their communications business using the Telstra brand. The first Telstra Licensed
Store opened in Ballarat, Victoria late in 1999 and more than 100 licences are expected to be
granted around Australia by the end of 2000. Many of the new licensed shops will be in
regional centres and create employment opportunities as well as offering a much wider range
of Telstra products and services.

The Telstra On Air Business Unit uses both internal and external sales channels to sell
mobile telephone products and services. Our external sales channel comprises third party
retail stores, dealers and service providers. These external sales channels transact 80% of
our connections and total 2846 outlets nationwide. Telstra pays the external sales channel
commissions commensurate with their level of connections.

Purchase of new technologies

During the next year Telstra expects to make major purchases of a range of new
technologies. These are expected to include:

   GPRS packet data GSM, which will provide increased mobile data speeds giving
    capability for Internet access for urban/rural areas with GSM coverage.
   1xRTT packet data CDMA, which will provide increased mobile data speeds giving
    capability for Internet access.
   WLL (Wireless Local Loop) on CDMA, a new access network option linked to the
    CDMA rollout which will benefit urban/rural areas with CDMA coverage.
   VOIP(Voice Over Internet Protocol), which provides benefits across Telstra business
    segments such as:
      Global Wholesale and Global point of presence (POP) rollout in lower cost, new
        applications and outside the Australian regulatory regime.
      Applications on telstra.com with Click to Call and Internet Call Waiting, which
        make use of Telstra‟s full service network.
      Corporate Voice on IP, to provide Telstra entry with a voice application on IP -
        Virtual Private Network (VPN) into highly competitive SME and Corporate
        converged voice/IP market.




                                        6
   WAP (Wireless Application Protocol), which enables Web-like services in a mobile
    environment.
   DMO Service Infrastructure, which provides the capability to support new and existing
    products with reduced costs for IT systems infrastructure eg. billing and service
    assurance.
   NGT (Next Generation Telephony) Infrastructure, which offers bundled voice and data
    services over a broadband access integrated with Telstra's on-line world to support
    customer self care. Initially NGT will be focused at Corporate & SME customers and in
    the medium term will deliver a range of value-added, converged voice/data products.
    NGT will enable rapid time to market development of new products.
   CMUX (Customer Multiplexer), which will improve delivery and performance of data
    and voice services to rural, business, residential and wholesale customers.
   DWDM (Dense Wavelength Division Multiplexing), a new transmission system which
    provides higher bandwidth for optical fibre transmission at lower cost.
   IP enabled DMO core with IP VPN, which will provide a managed service emulating
    private IP networks on a shared IP infrastructure meeting diverse needs of a wide range
    of customer segments including WAN, Remote Network Access, Internet Access &
    Valued Added Services.
   Home zip, a prepaid fixed line offer for residential customers which enables multiple
    customers or account holders with a single PSTN line.
   ADSL (Asymmetric Digital Subscriber Line), which will enable urban & residential
    customers access to high speed internet data.

The selection of suppliers for these new technologies will be subject to Telstra‟s sourcing
process consistent with the objectives of this Plan. In some cases the sourcing process has
commenced, but is not yet complete, in other cases is yet to begin. Consequently, it is not
prudent for Telstra to speculate on which Australian companies may or may not be in a
position to compete successfully for this business. However, it is clear that these initiatives
will create significant opportunities for suppliers and developers of these emerging
technologies.

Content and application offerings

Telstra‟s developments within the area of Content and Application offerings are a part of
Telstra moving its business up the value chain. In choosing application software to provide
the full range of dot com services, Telstra prefers to use technologies that are „best of breed‟
and products capable of being brought to market quickly.

This creates a significant opportunity for Australian companies (including small software
developers) to develop competitive application products within niches in the emerging
electronic/Internet business market and to have their products used by Telstra to serve a wide
market both inside and outside Australia.




                                          7
The development of WAP (Wireless Application Protocol) services enabling Web-like
services in a mobile environment is just one example. Telstra envisages that this technology
will create opportunities for industry in a number of areas:
  Co-marketing partnerships - these result in growth in activity between Telstra and
     customer serving organisations whereby Telstra assists those organisations provide on-
     line services to the marketplace eg. wishlist.com, Westpac banking trial.
  Application development - these result in growth of activity whereby organisations
     supply content or applications to Telstra so that Telstra can provide on-line services to
     the marketplace eg AAP, ASX.
  Professional services partnerships - these result in growth in the number of occasions
     Telstra engages professional services firms to assist its customers develop applications.

As the technology develops and the market develops beyond the introductory phase, rapid
growth in industry partnerships will occur. These sorts of activity directly involving the
market leader, Telstra, will also drive similar activity elsewhere in the industry not
necessarily involving Telstra directly.


       For the above Telstra will report each year on major industry programs and Product
       Sourcing Agreements (“PSAs”) either entered into or extended during the course of
       the year.


STRATEGIC ALLIANCES WITH AUSTRALIAN COMPANIES
“(c)THE CARRIER’S STRATEGIC ALLIANCES WITH AUSTRALIAN COMPANIES;”

Telstra has term sourcing arrangements with a number of Australian companies. Telstra‟s
long term contracts offer a more stable environment for local suppliers, many of whom are
SMEs, to establish the critical mass necessary to move into a world wide environment.
Telstra will continue to provide timely information to potential Australian suppliers in
relation to its technical and commercial directions. Innovation is in many cases being
delivered by smaller companies, and Telstra requires its major industry partners to jointly
accept responsibility for industry development. In many cases, larger vendors take prime
accountability for the involvement of smaller vendors in providing critical elements of the
overall solution provided to Telstra. Telstra strongly encourages major vendors to enter into
sub supplier arrangements with local SMEs.


       For the above Telstra will report on the programs it has entered into and the level of
       business it has with Australian companies.




                                        8
      STRATEGIC ALLIANCES WITH MULTINATIONAL COMPANIES
      (d)“THE CARRIER’S STRATEGIC ALLIANCES WITH MULTINATIONAL COMPANIES”

      Telstra maintains partnerships with vendors where there are significant business benefits to
      both parties in delivering new value to Telstra's customers.


             For the above Telstra will report on significant activities that have occurred as a
             direct consequence of its partnerships or long term relationships with multinational
             companies.



5.2   EQUIPMENT FOR USE BY PEOPLE WITH DISABILITIES
      (e)“THE CARRIER’S RELATIONSHIPS IN CONNECTION WITH THE PRODUCTION AND SUPPLY
      OF EQUIPMENT FOR USE BY PEOPLE WITH DISABILITIES”

      Telstra fully supports the social policy objective of ensuring that all Australians gain benefits
      from the new communications revolution, and its nexus with economic efficiency
      requirements for true universality of service provision.

      Telstra has a company-wide disability policy, which supports the principles contained in the
      Disability Discrimination Act 1992, and commits to the development of a Disability Action
      Plan that Telstra submits to Human Rights and Equal Opportunity Commission every three
      years. In December 1999, Telstra formally reported to HREOC that 91 percent of actions
      documented in its initial Plan had been completed or were in progress.

      Telstra has a well-established consultation process through its national and eight regional
      Consumer Councils. Each council has at least one disability organisation represented.
      Telstra‟s Disability Forum, established in 1999, meets twice annually and ten peak disability
      consumer groups are represented. In all, 24 consumer organisations representing people
      with disabilities, as well as representatives of organisations such as pensioner groups and
      Councils on the Ageing, participate in each of the national and regional Telstra Consumer
      Consultative Councils.

      As well, Telstra values the relationships it has developed with individual disability
      organisations. Together these relationships and processes offer valuable guidance and
      feedback on disability-related issues and developments.

      Telstra has comprehensive procedures in place to ensure that Telstra products are designed
      to take account of disability and useability issues. Assessing useability is part of Telstra‟s
      extensive product early planning and development process. This includes each product
      having useability and disability key requirements considered by subject matter experts
      within Telstra who examine projects with a view to firstly, ensuring projects incorporate
      human factors principles of design. This takes into account the needs of the users and how
      the users interact with the new or enhanced product and secondly, considering useability
      aspects from the perspective of people with a disability.


             For the above Telstra will report on the initiatives it has undertaken in connection
             with the production and supply of equipment for use by people with disabilities.


                                                9
5.3   RESEARCH AND DEVELOPMENT
      (2A)“THE PLAN MUST INCLUDE ANY RELEVANT PARTICULARS OF THE CARRIER’S
      ACTIVITIES IN RELATION TO RESEARCH AND DEVELOPMENT, INCLUDING (BUT NOT
      LIMITED TO) MATTERS IN CONNECTION WITH:”
      (a)“INVESTMENT IN RESEARCH AND DEVELOPMENT CAPABILITIES;”

      Over the next year major application areas where Telstra will invest in R&D include:

            Broadband Services
            Mobility
            Next-generation Networks
            Customer Access
            Network Management
            Service Activation and Assurance
            Electronic commerce and business support

      Telstra is a large and diverse organisation carrying out R&D in many of its Business Units.
      Telstra Research Laboratories (TRL) carries out about a quarter of total R&D investment of
      the company, concentrating on strategic innovations and problem solving. It represents
      significant intellectual capital. Main streams of activity in TRL over the next year will be in
      Services for Business Enterprises, Mobility Services and Systems, On-line and Media
      Applications, and Next-generation Network and Systems Infrastructure.

      TRL also manages R&D contracts with universities and other research providers in
      Australia. Continuing support through the Cooperative Research Centres scheme will be
      provided to:

            The Australian Photonics Research Centre; and
            The Enterprise Distributed Systems Technology Centre (formerly the Distributed
             Systems Technology Centre) operated by DSTC Pty Ltd.

      In addition, there is a significant, on-going research contract with the Teletraffic Research
      Centre at the University of Adelaide. TRL maintains joint R&D agreements with a number
      of organisations and vendors.


      The Launceston Broadband Project

      The Launceston Broadband Project (LBP) is a joint initiative of Telstra and the
      Commonwealth Government. From Telstra‟s perspective, the project is aimed at
      introducing the Launceston community to new on-line applications through limited market
      trials and early deployment of new products. Telstra will match the Commonwealth's
      funding, giving the LBP a total budget of $30 million over five years. The LBP will play a
      major role in ensuring that Tasmania is in the best possible position to seize the
      opportunities offered by the information age. It will develop a body of expertise and skills
      in broadband products and services in Tasmania. It will also increase employment levels
      and provide skilled employment in Tasmania.




                                               10
There are three components of the project:

Utilisation of ADSL infrastructure in Launceston, to link between 2,500 and 5,000
customers to advanced internet protocol services. This will provide immediate benefits
to Launceston residents, as well as providing a 'large scale laboratory' to develop and test
a wide range of broadband products and services;

Establishment of a Telstra development facility, employing up to 25 staff. The facility
will be devoted to the commercialisation of broadband applications which have reached
the stage of being viable in a laboratory setting;

Funding of related broadband product development activities by other businesses,
assisting smaller and start-up companies wishing to access the leading edge technology
of the Launceston broadband network. The Commonwealth will provide $5 million over
five years to support companies wishing to work with the LBP, while Telstra will
provide support, training, commercialisation assistance and linkages with research
institutions and equipment manufacturers.


       For the above Telstra will report on its level of investment in research and
       development and the major activities involved.


RESEARCH INTO NEW TECHNOLOGIES
“(b)RESEARCH INTO, AND DEVELOPMENT OF, NEW TECHNOLOGIES”

Key technical objectives of R&D activities over the next year are as follows:

   Internet-enabled Infrastructure, including:
         Internet access architecture and features for consumer customers;
         New services, including Internet virtual private networks for corporate customers;
            and
         New generation telephony based on Internet protocol.


   Converged products (Internet and TV), including:
        Web-enabled TV; and
        Interactive TV.


   Electronic commerce solutions, including:
        Web-enabled call centres; and
        On-line trading framework.


   Broadband Access, including:
        ADSL and VDSL (Very high-speed Digital Subscriber Line); and
        Fibre to the Curb and Fibre to the Home solutions




                                         11
      Mobile Communications, including:
        Development of cost effective infrastructure to assist growth of digital mobile
         communications;
        Development of new services for CDMA mobile telephone users;
        Development of packet data services for digital mobile users; and
        Investigation of health effects of electromagnetic radiation.




       For the above Telstra will report on its progress with research and development into
       new technologies.


AUSTRALIAN OWNERSHIP OF INTELLECTUAL PROPERTY
“(c) ARRANGEMENTS FOR MAINTAINING AUSTRALIAN OWNERSHIP OF INTELLECTUAL
PROPERTY”

To deal with the widespread nature of R&D in Telstra, a wholly owned subsidiary, Telstra
R&D Management Pty Ltd (TRDM), has been formed to coordinate R&D throughout the
corporation as well as manage and appropriately commercialise the developed Intellectual
Property.

TRDM also manages Telstra‟s R&D, pays for all R&D projects, submits a yearly R&D Plan
via its Board to Telstra and is debt funded to carry out the R&D by contracting Telstra
groups such as TRL to perform it. TRDM owns the Intellectual Property generated by the
R&D and licenses it to Telstra or to outside parties.

TRDM is building up a stock of Intellectual Property in key telecommunications areas that
will be treated in a commercial manner by the licensing process. The Intellectual Property
will be available to Australian industry on commercial terms where it is in Telstra‟s strategic
interest.

A prime function of TRDM is to also ensure that ownership of Intellectual Property is
maintained in dealings with outside parties and that full value is obtained during technology
transfer in terms of fees or other consideration in exchange for access or marketing rights.

Telstra will continue to encourage world class products and technology leadership in
Australian industry. Recent initiatives undertaken or being pursued by TRDM include
collaborative R&D, and affiliation with selected incubators and Venture Capital Funds to
incubate and spin-off companies based on technology developed within Telstra.


       For the above Telstra will report on the involvement of Australian industry in the
       commercialisation of Telstra’s intellectual property and the intellectual property
       developed in Australia as a result of Telstra’s activities.




                                        12
TECHNOLOGY TRANSFER TO AUSTRALIAN INDUSTRY
“(d) ARRANGEMENTS RELATING TO TECHNOLOGY TRANSFERS TO AUSTRALIAN INDUSTRY”

A key element of all major purchasing decisions is the availability of local skills to support
product development and operation. As many of Telstra‟s major investments in new
products and services are of global standards, the technology required to support them is
generally not of Australian origin. This applies particularly to key network elements such as
switching equipment. Therefore, rather than have “orphan” products developed specifically
for the Australian market, Telstra believes it is more beneficial to adopt these global
technologies as it allows Telstra to keep pace with world trends and provide a basis to
compete internationally with other telcos.

However, a key element of this policy is the requirement Telstra places with its major
equipment suppliers that the knowledge base to support these technologies is transferred to
Australia. This may take the form of local manufacture, the establishment of centres of
expertise in Australia and/or local support infrastructure, such as training and product
testing.


       For the above Telstra will report on new technologies it has introduced and the
       arrangements for the transfer of these technologies to Australian based
       organisations.


RESEARCH TO ADDRESS THE NEEDS OF PEOPLE WITH DISABILITIES
“(e) RESEARCH AND DEVELOPMENT TO ADDRESS THE NEEDS OF PEOPLE WITH
DISABILITIES”

Visual Impairment

Telstra Research Laboratories is undertaking a project to enable the development of Telstra
web-based products and services that are accessible to people with a visual impairment.

The first aim for this research is to use the substantial information publicly available in the
form of user interface design standards (eg the Trace Centre USA and W3C guidelines) to
create design guidelines for enhanced accessibility to web sites for the visually impaired.

This project is scheduled to be completed in March 2001.

Hearing Impairment

With the assistance of Telstra funding, National Acoustics Laboratory (NAL) has examined
the compatibility of CDMA phones with hearing aids. The results of the first phase of
testing, which involved both laboratory bench testing and subjective assessments by two
persons with close to normal hearing of the level of interference, are outlined in a report
entitled “Assessment of Interference to Hearing Aids used in Australia by CDMA Digital
Mobile Phones” http://www.hearing.com.au/Research/index.html.




                                         13
In the second phase of testing which is presently underway, objective measurements of
hearing aid immunity made using a waveguide apparatus are being related to the subjective
assessments of the hearing aid wearers. This testing is expected to be completed by the end
of June 2000.

Telstra is also seeking the assistance of the Cochlear Institute to undertake testing of CDMA
for people using cochlear ear implants. This testing is also expected to be completed by mid
2000.

Payphones

Telstra operates a sophisticated network of payphones incorporating improved functionality,
including; coin and card payment, volume adjustment, easy to use keypad, modular design
(TTY can be attached), large screen display, hearing aid coupler and remote fault reporting.

Telstra is about to establish a reference group to assist in the development of a research
project to determine the suitability of the current mounting height of its payphones; this
project will be in addition to some earlier research undertaken by Telstra. The research brief
will be developed with the assistance of a reference group which will include representatives
of disability consumer organisations, people with research and access expertise. It is
expected that the research will be completed by the end of 2000.

Currently Telstra has installed 115 teletypwriter (TTY) payphones around Australia. Under
the auspice of the Telstra Consumer Consultative Council, Telstra undertook a siting survey
of TTY users to gain an understanding of siting preferences and other suggestions. The
results of the survey are currently being considered by relevant consumer organisations and
Telstra will use the findings to improve its siting practices. In addition, another 30 TTY
payphones are expected to be installed next year.

Standard telephone services

For over 20 years Telstra has been providing specialised telephone equipment to enable
people with a disability to access the standard telephone network. If customers with
disability need modified phones or specialised equipment to use the standard telephone
service, they may be eligible to hire equipment through Telstra‟s Disability Equipment
Program for the same hire charge as a standard telephone handset.

As part of the maintenance and enhancement of this program, Telstra undertakes research to
review existing equipment or develop new equipment. Currently, Telstra is undertaking a
sourcing project for equipment suitable for use by its deaf/blind customers.


       For the above Telstra will report on progress in the research and development of
       products for people with disabilities.




                                        14
5.4   EXPORT PLANS
      “THE PLAN MUST INCLUDE ANY RELEVANT PARTICULARS OF THE CARRIER’S EXPORT
      DEVELOPMENT PLANS, INCLUDING (BUT NOT LIMITED TO) EXPORT DEVELOPMENT PLANS
      RELATING TO EQUIPMENT FOR USE BY PEOPLE WITH DISABILITIES”

      Telstra‟s international strategy is twofold:

                to significantly grow Telsta‟s base of international wholesale carrier and service
                 provider customers and Telstra‟s international revenues from Multi-national
                 Corporation (MNC) retail customer world-wide (Global Connectivity), and
                to participate in the telecommunications growth in Asia Pacific.

      Global connectivity objectives will be achieved through:

             Increased scale of business to reduce unit cost;
             Global trading in international telephony traffic, and developing the concept for internet
              traffic;
             Active marketing through Points of Presence (POPs) operations in Asia, Europe and the
              US;
             Selective investments in new international cable projects and/or additional capacity in
              existing cables; and
             Providing offshore switching capacity to UK and New Zealand (in place) and extending
              this to US, Hong Kong and Japan.

      Telstra‟s second key international strategy, to participate in the telecommunications growth
      in Asia Pacific (Regional Strength) will be pursued through the organic growth of the POPs
      businesses, as well as through selected acquisitions and/or establishment of new businesses
      in the region. The following outcomes are sought:

             Generation of shareholder value through investing in selected regional markets and
              industry sectors.
             Establishing Telstra as the carrier of choice for US and European carriers and service
              providers in the Asian wholesale market (recognising that a substantial percentage of the
              international traffic will be terminated directly by the major carriers through their own
              subsidiary operations in the region).
             Further enhance Telstra‟s ability to service MNC customers.


      In support of Telstra's international plans, POPs have been established in Japan, NZ, US and
      Korea. As vendors contracts have been established or extended, commercial conditions have
      been negotiated which enable Telstra to leverage these contracts and pricing for international
      opportunities. Vendors have accepted prime accountabilities for establishing these POP's
      which enable Telstra to compete offshore in a greenfields environment, but still exploit
      Australian industry skills and known technologies more competitively offshore.


                 For the above Telstra will report on its offshore business plus any facilitated and
                 direct exports generated.




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5.5   EMPLOYMENT
      “THE PLAN MUST INCLUDE ANY RELEVANT PARTICULARS OF THE CARRIER’S
      ARRANGEMENTS AIMED AT ENCOURAGING EMPLOYMENT IN INDUSTRIES INVOLVED IN
      THE MANUFACTURE, DEVELOPMENT OR SUPPLY OF FACILITIES, INCLUDING (BUT NOT
      LIMITED TO) ARRANGEMENTS AIMED AT ENCOURAGING:”

      “(a) EMPLOYMENT OPPORTUNITIES RELEVANT TO THOSE INDUSTRIES;”

      Telstra is one of Australia‟s largest employers and, in addition, supports a number of
      existing businesses in which it has an equity investment including Foxtel, Pacific Access,
      Advantra and IBM GSA. These are making tangible contributions to industry development
      in various ways and providing local employment opportunities.

      Telstra‟s stated preference to purchase locally will continue to provide opportunities for
      employment. Telstra‟s purchasing decisions have consistently provided the basis to permit
      local industry to make positive decisions on new capital investment and the introduction of
      new technologies. Telstra‟s activities with its long term supply partners also generate local
      employment opportunities.

      The opening of the design and construction activity in the core network and access network
      to external contractors has provided a very significant new employment opportunity to
      design and construction companies. With Telstra contracting out its Inter Exchange Network
      build, these external contractors now employ approximately 650 people and similar numbers
      are expected for next year.


             For the above Telstra will report on activities it has undertaken that either directly
             or indirectly have lead to the generation of local employment opportunities. We will
             also report on our own employment levels.



5.6   TRAINING
      “(b) TRAINING RELEVANT TO THOSE INDUSTRIES.”

      The telecommunications industry is experiencing global integration and the convergence of
      technologies. Telstra is at the forefront of this in Australia, affecting both the way we do
      business and the training and development of our people to compete in this business.

      In this environment the key aspects of training for the year 2000-2001 are:

         There will be a continued increase in the adoption of on-line and multi media
          approaches to delivery of training. Over 60 percent of in-house training design and
          development is expected to be for screen based, on-line and multi media delivery. In
          addition, in some work environments the bulk of training delivery is expected to be on-
          line. This will result in work efficiency through less training down time on the job and
          also decreased delivery costs.




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        There will be increased emphasis on cross training in telecommunications technical
         skills and IT skills, especially in the area of vendor training. This is due to the
         convergence of technology and the subsequent uptake of new vendor technologies
         within Telstra.

        Telstra has been using the Industry Training Packages as a basis for training delivery
         and issuing qualifications. This will continue, giving Telstra people industry
         recognition and transportability of qualifications.

        Telstra will continue to support the industry development and review of competency
         standards and training packages to ensure the maintenance of industry standards and the
         continual relevance of these within a fast moving industry.

        Telstra will continue its leading role in the progress of the IT & T Task Force (see
         details below) to ensure the supply of appropriate IT skilled people to meet industry
         needs.

        The support of undergraduate and postgraduate training through the provision of
         fellowships and cooperative scholarships.

     A strong focus on leadership training will continue within the company in order to improve
     the leadership capability appropriate to Telstra‟s needs now and in the future. This will be
     centred on providing best practice knowledge, skills and tools for managers and creating a
     framework for managers to be teachers and coaches to their people.


            For the above Telstra will report its level of training expenditure and its involvement
            in generating training opportunities external to Telstra including sponsorship with
            third party training organisations. Telstra will also report on major training
            activities for staff of other organisations that relate directly to meeting the needs of
            Telstra.



6.   REPORTING AND CONSULTATION

     Telstra will provide a report to the Communications Minister against this Industry
     Development Plan within 90 days, after the end of the Commonwealth‟s financial year – by
     30 September 2001. Telstra will also make a summary of this report available to the public.

     Telstra will give written notice to the Communications Minister of matters that may affect
     the achievement of its Industry Development Plan or any variations to the Plan if, and when
     required.




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