QUEENSLAND CONNECTS: OPTUS NETWORK READY FOR SERVICE

Optus announced today that after 12 months of development, its commitment to the Queensland Government's multi- million dollar SmartNet initiative had been fulfilled.

Speaking at the launch ceremony in Rockhampton, Optus Queensland State Manager, Mark Williamson, said the Company had provided hundreds of thousands of Queenslanders access to competitive broadband services.

"We made a promise to deliver competition to the people of Queensland and we have now delivered on that promise," Mr Williamson said.

"Optus was announced as a preferred supplier to the SmartNet initiative in 2003 and since then we have installed fibre optic networks in Cairns, Townsville and Rockhampton as well as expanding our existing network to deliver broadband services to more than 30 regional towns.

"Queenslanders are no longer limited to one provider for their telecommunications and data services and can look forward to experiencing new levels of competition - better services and better prices."

Mr Williamson said without the Government's commitment to infrastructure-based competition Optus would not have been in a position to invest in excess of $1 billion worth of infrastructure in the State.

"The Government was extremely entrepreneurial when they came up with this initiative. Using their purchasing power to encourage infrastructure expansion was commercially savvy and all state and territory governments should consider adopting this approach, if they haven't already," he said.

Under the SmartNet initiative, consumers and businesses in many rural and regional towns will have a choice of telecommunications provider for the first time.

"Broadband penetration in Queensland is at 18 percent. Australia is at 17 percent - a long way off the leading countries around the world. But industry analysts are forecasting a rapid increase in Australian penetration – reaching 41 percent by 2008," Mr Williamson said.

"Optus is a major player in encouraging the take-up of broadband by offering choice and competitive services. We expect this new infrastructure will significantly contribute to reaching the forecasts.

"Five years ago Optus and the Government met regional Queensland's demand for alternate telecommunications suppliers by building the Reef Network. Reef reached capacity well ahead of schedule and we have every confidence that SmartNet will achieve the same success."

Media contact:
Luisa Ford
Optus Corporate Affairs
Tel: (02) 9342 5045

Note to Editors:

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