Telstra 2002 Annual Report Download - page 115

112
Telstra Corporation Limited and controlled entities
Operating and Financial Review and Prospects
• growth in other contestable products, particularly broadband and internet related products, was
also achieved through more market driven pricing and offerings.
Telstra Wholesale earnings before interest and income tax expense fell by 2% in fiscal 2002, largely due to
the reduction in sales revenue in this segment. Similarly, the increased earnings before interest and tax of
25% in fiscal 2001 was driven principally by increased sales revenue compared to fiscal 2000.
In fiscal 2001 earnings before interest and tax in this segment was impacted by increased network payments
to other carriers, as a result of higher volumes of outgoing calls terminating on other carriers’ networks and
increased interconnect rates. These increased payments have been tempered in fiscal 2002 by decreasing
interconnect rates, with network payments decreasing in fiscal 2002 compared to fiscal 2001.