Telstra to Provide Voice Over IP Service; Selects Clarent As Key Supplier To Enhance International Wholesale Offering.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 13, 1999--

Telstra will introduce a Voice over Internet Protocol (VoIP) service in December this year, enabling international carriers and emerging Internet Telephony Service Providers (ITSPs), to transmit voice calls via the Internet.

Clarent Corporation, a worldwide leader in the provision of IP telephony based solutions to carriers, has been selected as one of the key suppliers for Telstra's IP telephony network.

The VoIP service will enhance Telstra's global wholesale business by enabling Internet Service Providers (ISPs) currently offering IP Internet connectivity to expand their service offerings with voice products, as well as providing Telstra's existing international wholesale customers with more innovative solutions for delivery of voice traffic throughout the world.

Working in partnership with a number of vendors, Telstra's VoIP solutions will provide wholesale carriers and Internet Telephony Service Providers (ITSPs) with a range of choices for delivery of voice services, from integration of VoIP with traditional networks to full end to end delivery via the Internet.

Companies will also have the choice of accessing reliable and competitive PSTN Least Cost Routes over the Internet, or have the traffic cleared by Telstra over IP routes.

General Manager of Telstra Global Wholesale, Peter Dutton, said that the VoIP service will help Telstra maintain its leading position amongst carriers in the Asia Pacific region as an innovative wholesale voice and data services provider.

"The global telecommunications market is looking more to emerging technologies to develop a competitive edge. Telstra has embraced new technological developments and is rapidly expanding into a broad range of IP based applications for voice and data. We plan to work in partnership with our global wholesale customers and use Internet technology to develop tailored solutions and value added applications," said Dutton.

Dutton said that Telstra will also use Internet technology to develop fully integrated VoIP clearing house facilities as well as on line services enabling global wholesale customers to access real time information such as billing, data, usage and capacity profiles directly from Telstra. "This will further enhance the delivery of our services for our international wholesale customers," he said.

Telstra has selected Clarent as one of the vendors who will supply IP telephony technology for its international VoIP service.

Clarent Corporation is a premier provider of scaleable, IP telephony products to carriers and Internet service providers around the world. Clarent's intelligent architecture and the Clarent Command Center enable Clarent products to route, manage, inter-connect and terminate high volumes of calls for service provider customers including the world's largest long distance telecommunication companies.

"Clarent is delighted to be selected as one of the IP telephony technology suppliers to Telstra," said Jerry Chang, CEO and president, Clarent Corporation.

"Telstra will use Clarent's Signaling System 7 gateway products, the Clarent Command Center and other Clarent back-end products to build a state of the art IP telephony network. Telstra will also benefit from forming minutes exchange partnerships with other large Clarent carrier customers around the world. Clarent applauds this important and strategic network launch for Telstra," continued Chang.

Telstra has provided global voice services to a range of international carriers through its comprehensive global infrastructure for more than 50 years.

About Clarent Corporation

Founded in July 1996, Clarent is headquartered in Redwood City, Calif., and has offices in major cities in Asia, Europe, Latin America and North America. Additional information about Clarent is available at http://www.clarent.com

About Telstra Corporation

Telstra Corporation Limited is the leading full service carrier in Australia and a major telecommunications player in the Asia Pacific region. Drawing on its 50-year involvement in the global telecommunications industry, Telstra provides expert advice on worldwide networking to many leading international and multinational companies.

Telstra owns and operates one of the most technologically advanced networks, offering end-to-end solutions ranging from broadband, IP, mobile and intelligent network services to voice and data network hubs, call centers, and advanced multimedia and e-commerce applications.

Additional information on Telstra and its services is available by calling 877/TELSTRA or viewing Telstra on the World Wide Web at http://www.telstra.com.

Note to Editors: Clarent is a registered trademark of Clarent Corporation in the United States and other jurisdictions. All other company or product names mentioned may be trademarks or registered trademarks of the respective companies with which they are associated.