OPTUS SLASHES INTERNATIONAL RATES AND ROLLS BACK LINE RENTALS

In a move that is set to intensify competition in the fixed line telephony market, Optus today announced radical changes to its telephony pricing, slashing international rates to its Top 10 calling destinations by between 50 and 85 per cent, dropping national rates by up to a third and rolling back line rentals to levels not seen since 2002.

Effective today, Optus will offer two new telephony plans:

1. Customers who sign up for Optus' new 'yes' Call Saver plan for 12 months will enjoy international rates as low as nine cents per minute to Optus' Top 10 calling destinations¹ with national rates on weekends also at nine cents per minute; and
2. Customers who sign up for Optus' existing FreeTime 20 Minutes and FreeTime 1 hour plans for 12 months will receive a $4 discount off their monthly line rental².

"After shaking up the broadband market earlier this year, Optus is now set to transform the competitive landscape for home phones. Until today, low international rates have been principally associated with calling cards and more recently VoIP offerings. However, today's announcement means that customers no longer have to experience the inconvenience of purchasing a calling card, worry about congestion at peak periods or paying up front and potentially waste unused call minutes," Scott Lorson, Acting Managing Director of Consumer and Multimedia said.

"Australian consumers can now enjoy industry low rates, 24/7, with the convenience and quality of their standard home phone."

Optus' 'yes' CallSaver plan will provide the greatest savings on calls to Optus' Top 10 calling destinations which include: USA, UK, NZ, Ireland, Canada, China, Singapore, Greece, Hong Kong and Italy.

In addition to the 'yes' Call Saver plan, Optus has also introduced a new contract option for customers wishing to save on their line rental.

"Customers will now be able to access all the benefits of our existing FreeTime plans with a line rental rate of only $25.95³. We have listened to the Australian public and are delivering a real alternative by focusing on value and simplicity," Mr Lorson said.

As always, Optus customers who bundle their telephony services are eligible to receive Optus 'yes' rewards of up to 100 free local calls every month.† These new plans give consumers a compelling reason to bring their home phone services to Optus.

For more media information:
Sheila Dhillon
Optus Corporate Affairs
Phone: +61 2 9342 9021

¹ A 37 cents standard connection fee applies per call
² Available when you combine Optus Local and Long Distance for 12 months
³ Telephony customers on the Optus Cable already pay line rental of $25.95 and will not be eligible for the $4 discount
† Optus 'yes' rewards are available to customers who bundle their Telephony service with any of the following eligible products: OptusNet Cable, OptusNet DSL, OptusNet Dial-up or Optus TV