CABLE & WIRELESS OPTUS ANNOUNCES MAJOR BUNDLING INITIATIVE FOR CONSUMER & MULTIMEDIA DIVISION

Cable & Wireless Optus today announced the next step in its strategy to drive growth and profitability in its Consumer & Multimedia Division.

The Division will now expand its focus on bundling its HFC-based products (pay television, high-speed internet and local telephony), dial-up internet and long distance telephony. The bundled products are marketed as Optus Choices and will begin with enhanced flexibility and customer choice for the Optus Television package.

Adrian Chamberlain, Managing Director, Consumer & Multimedia, Cable & Wireless Optus said the move was designed to further build customer loyalty, decrease churn and increase the average revenue per user (ARPU).

"Consumer & Multimedia is the fastest growing of our three Divisions. During 1999/2000, revenue for the Division was up 55 per cent and broadband customer numbers were up 53 per cent. We plan to continue this growth by becoming the market leader in bundled solutions.

"We will focus on higher spending customers who want simplicity, convenience and great value rather than cheapest price, and who require multiple Optus products.

"Our aim is to make Optus the provider of choice for information, communication and entertainment services for the Australian home. This vision incorporates the TV, the PC, the telephone and the mobile phone," said Mr Chamberlain.

"Our customers will benefit from significant discounts by buying multiple products and our shareholders will benefit because these customers will be loyal and spend more on communication services."

The Optus Television Packages range from $19.95 per month to $39.95 per month. Customers select the Access Package and can then choose the types of channels they want and get free telephone line rental.

For more information:
Melissa Favero
Cable & Wireless Optus
Phone: (02) 9342 5030