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TELSTRA REPORTS 2.2M GSM USERS

SAN FRANCISCO-Telstra MobileNet in Australia said strong December growth and increased
migration of subscribers from analog to digital service increased its customer base to approximately 2.2 million Global
System for Mobile communications customers and about 1 million analog customers.

Telstra estimates MobileNet
controls approximately 49 percent of the GSM market, 73 percent of the Advanced Mobile Phone Service market and
55 percent of the overall cellular market in Australia.

Jonathan Marchbank, Telstra’s managing director, said the
strong growth leading up to and over the Christmas period was due to Telstra’s introduction of the $10 access fee, the
country’s lowest-ever digital mobile retail plan.

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