OPTUS CEMENTS POWERFUL PARTNERSHIP WITH THE QUEENSLAND GOVERNMENT

Optus announced today it would develop a new network throughout Queensland to deliver competitive data telecommunications to the majority of the Queensland population.

Speaking at an official ceremony in Brisbane with Queensland's Deputy Premier, Treasurer & Minister for Sport and Minister for Public Works, Optus Business' Managing Director, Peter Kaliaropoulos, said by the end of the year hundreds of thousands of Queenslanders would have access to competitive broadband services.

"Optus will install fibre optic networks in Cairns, Townsville and Rockhampton in addition to expanding the Optus network to deliver broadband services to more than 30 Queensland regional towns at no additional cost to the State Government.

"We have made a commitment to deliver competition to the people of Australia and the SmartNet initiative is another example of where Optus is delivering on that promise," Mr Kaliaropoulos said. For the first time Queenslanders will have a choice for their telecommunications and data services at affordable prices - real infrastructure competition will deliver competitive pricing, bandwidth and high quality service levels.

"On the latest estimates, Australia has some 657,000 broadband subscribers - nearly 13 per cent of all internet subscribers, or around nine per cent of households. Optus will be helping to considerably boost these figures as a result of the SmartNet initiative.

"We believe Australia is at a tipping point as far as broadband penetration goes, with broadband penetration set to rise significantly. And Optus has a major role to play in pushing through that tipping point by offering competitive broadband services.

"SmartNet is not only of vital importance for the affordable services it will deliver; it is also a recognition of the Queensland Government's commitment to infrastructure based competition and a further demonstration of the powerful partnership that Optus is continuing to build with the people of Queensland."

Mr Kaliaropoulos said Optus had partnered with the Queensland Government on a number of initiatives including the Reef Network and was proud to be working with them again.

"The Reef Network has been successfully providing high-speed data communications up the east coast of Queensland to all centres from Brisbane to Cairns for over four years. We are looking forward to once again being associated with an initiative that puts Queensland at the forefront of the broadband revolution," he said.

The project has significant potential to improve the quality of life in regional Queensland by addressing the issue of isolation and providing appropriate infrastructure needed as a catalyst for economic development.

Under the SmartNet agreement, Optus will also create an alliance with the Balkanu Cape York Development Corporation and provide financial support, telecommunications and training in data communications to indigenous organisations in the Cape York area.

Note to Editors:

• The Queensland Government has committed to expend $210 million on Optus products and services over five years to support the SmartNet initiative.

• The expanded Optus network delivering broadband services will include the following locations: Airlie Beach, Ayr, Beaudesert, Bundaberg, Caboolture, Caloundra, Cairns, Cleveland, Emerald, Gladstone, Gympie, Hervey Bay, Innisfail, Ipswich, Kingaroy, Logan, Mackay North, Mareeba, Maroochydore, Maryborough, Mt Isa, Noosa, Redcliffe, Rockhampton, Strathpine, Surfers Paradise, Toowoomba, Townsville, Warwick and Yeppoon.

For more information:
Luisa Ford
Optus Corporate Affairs
Mobile: 0411 024 104
Email: luisa.ford@optus.com.au