Telstra's Data/Internet Traffic Outpaces Voice To Increase 5 Times By The End Of This Millennium.

SAN FRANCISCO--(BUSINESS WIRE)--May 5, 1998--The amount of data traffic on Telstra's international network will be five times greater than voice by the end of this millennium, according to Telstra executive John Losco.

"This is only 19 months away," Losco, Managing Director, Sales, Business & Government, told the ATUG conference today.

In his address titled "Telecommunications in a changing market," he said that the time is rapidly approaching when, for the first time in history, data traffic will surpass voice traffic in volumes on the Telstra network.

Telstra now has more international Internet traffic than international voice traffic.

Referring to a graph illustrating the growth of data traffic (mostly Internet) in Telstra's international business, Losco commented:"What this says about the pace of change is very revealing, even alarming.

"In 1996 our international Internet traffic was so low in comparison to voice that it scarcely registered. You can see it start to lift off in early 1997, and then, in only 18 months, it rocketed up to exceed voice traffic."

He said that on the national scene, the digitisation of the Telstra network is almost complete in anticipation of the transition Telstra is making from voice carrier to that of a customer focused, solutions-based global data company, that also has a solid but slow-growing voice business.

Losco told the conference that this calendar year Telstra is upgrading its ATM network to carry 155 mbps permanent virtual circuits. "We have a number of customers seeking 155mbp ATM solutions," he said. "This means our major routes will have 622 mbps capacity bearers and we will be installing digital switches with 80gbps switching capability."

Losco said Telstra has a very clear view of what the future holds, the challenges and the customer needs.

Telstra had the most comprehensive product set of any telco in the world. "This means that we have a very high level of capability to customise solutions to specific customer needs, not only in Australia, but as required for multinational corporations, to most of the world as well. And, we have proven we are good at it."

Until two years ago, Telstra was introducing 10-15 new products and services a year. "Last year we launched 83. This year's target of 80 has already been achieved," Losco said.

Telstra Corporation Limited is Australia's leading full service domestic and international telecommunications provider and a major carrier in the Asia Pacific region. With annual revenues of more than US$14 billion (Aud$17.2 billion), Telstra offers consumers and businesses a broad portfolio of services including long distance, wireless, local, messaging, Internet services, information services, outsourcing, and advanced global telecommunications services. Additional information on Telstra and its services is available by calling 1 800 799 6283 or viewing Telstra on the Internet's World Wide Web at http://www.telstra.com.au.

CONTACT: Telstra

Cathy Clarke, 203/532-1339 (tel)

203/532-1659 (fax)

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