Telstra 2010 Annual Report Download - page 27

12
Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2010
Fixed products
PSTN
• PSTN revenue declined by 8.0% to $5,833 million driven by continued lower usage and an increase in the decline
of retail SIOs
• Retail revenue declined by 7.4% compared with a slowing wholesale decline of 11.8%
• PSTN average revenue per user (ARPU) declined by 4.3% to $54.99 per month
(i) Includes local calls, national long distance and international direct minutes from our public switched telephone network (PSTN) and independently operated
payphones. Excludes minutes related to calls from non-PSTN networks, such as mobiles, ISDN and virtual private networks.
Total PSTN revenue declined by 8.0% to $5,833 million.
A 9.0% decline in the second half of the fiscal year
reflected a continued acceleration of the decline in PSTN
revenue over recent periods following the 4.8% decline
in the second half of last fiscal year and the 6.9%
decline in the first half of this fiscal year. This decline
has been driven by lower usage across all calling
categories and the continued fall in SIOs from
acceleration of retail customer loss as ULL growth
continues and customers migrate to mobile and IP
products. The fall in usage levels also had a direct
impact on PSTN ARPU which declined by 4.3% to $54.99
during the year.
For the fiscal year, total basic access lines (SIOs)
declined by 358 thousand to 8.66 million. Retail SIOs
declined by 326 thousand and wholesale SIOs declined
by 32 thousand lines. The decline was partly driven by
the continued increase in mobile only households and
the migration to IP access services in large businesses.
Some of the decline consequently represents a change
in technology usage rather than a loss of customers.
Retail PSTN lines were also negatively impacted by the
competitor take-up of ULL and LSS lines where build
activity and wholesale SIO loss was significant last year.
The rate of decline in retail lines increased slightly in the
second half of the year.
PSTN Year ended 30 June
2010 2009 Change Change
$m $m $m %
PSTN revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,833 6,337 (504) (8.0%)
PSTN retail versus wholesale revenue
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,167 5,582 (415) (7.4%)
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666 755 (89) (11.8%)
Basic access lines in service (thousands)
Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,203 5,462 (259) (4.7%)
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,204 2,271 (67) (3.0%)
Total retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,407 7,733 (326) (4.2%)
Domestic wholesale. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,253 1,285 (32) (2.5%)
Total basic access lines in service . . . . . . . . . . . . . . . . . . . . . 8,660 9,018 (358) (4.0%)
Average revenue per user per month ($'s) . . . . . . . . . . . . . . . . . 54.99 57.47 (2.48) (4.3%)
Number of local calls (millions) (i) . . . . . . . . . . . . . . . . . . . . . 4,134 4,844 (710) (14.7%)
National long distance minutes (millions) (i) . . . . . . . . . . . . . . . . 5,915 6,555 (640) (9.8%)
Fixed to mobile minutes (millions) . . . . . . . . . . . . . . . . . . . . . 3,133 3,332 (199) (6.0%)
International direct minutes (millions) (i) . . . . . . . . . . . . . . . . . 541 560 (19) (3.4%)
Note: statistical data represents management's best estimates.
PSTN Revenue ($m)
1H08 2H08 1H09 2H09 1H10 2H10
3,391
3,275 3,219
3,118
2,997
2,836