Telstra 2007 Annual Report Download - page 20

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17
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2007
Payphones
Payphone revenue declined by 11.5% to $92 million in the year ended 30 June 2007. This is a result of a
reduction in coin revenue of $9 million, with call and product substitution from payphones to pre-paid
mobiles. Phone-card revenue also reduced by $2 million resulting from increased competitor pre-paid
calling cards with international call rates at 1 to 2 cents per minute to some locations. We have removed a
number of low usage payphones resulting in a reduction in the number of Telstra owned and operated
payphones.
Customer premises equipment
Customer premises equipment (CPE) revenue increased by 16.1% to $318 million. This increase was mainly
driven by growth in enhanced CPE products, PBX products and Telstra branded and non-branded consumer
products, offset by a decline in first and extension phones.
Enhanced CPE products grew by $20 million after Telstra Business Systems CPE-carriage bundles increased
unit sales by 30% as a result of strong marketing activity. New dealer recruitment via Telstra Licensed Shop
channels has also contributed to strong sales that have had a positive effect on year on year growth.
PBX products have increased mainly due to additional revenue being generated from acquired entities
Converged Networks Pty Ltd ($7 million) which was acquired in April 2006, and Touchbase Avaya Pty Ltd ($4
million) acquired in July 2006. Service revenue increased this year by $8 million resulting mainly from new
contracts acquired in fiscal 2007.
Telstra branded and non branded products have increased by $12 million due mainly to digital and IT
equipment revenue growth consistent with sales activity on the Next G™ network, offset by a $10 million
decline in first and extension phones caused by continued substitution to sales CPE and mobiles.
Payphones
Year ended 30 June
2007 2006 Change 2007/2006
$m $m $m (% change)
Payphone revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 104 (12) (11.5%)
Telstra owned and operated payphones (thousands) . . . . . . . . . . . . . . . . . . . . . . . 25 30 (5) (16.7%)
Privately owned and operated payphones (thousands) . . . . . . . . . . . . . . . . . . . . . 25 27 (2) (7.4%)
Total number of payphones (in thousands) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 57 (7) (12.3%)
Note: statistical data represents management's best estimates.
Customer premises equipment
Year ended 30 June
2007 2006 Change 2007/2006
$m $m $m (% change)
Customer premises equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 274 44 16.1%