Slide 1: Telstra 5G Update - ASX cover letter
5 December 2018 Office of the Company Secretary Level 41 The Manager 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Market Announcements Office Australian Securities Exchange General Enquiries 03 8647 4838 4th Floor, 20 Bridge Street Facsimile 03 8600 9800 SYDNEY NSW 2000 ELECTRONIC LODGEMENT De
Slide 2: CEO & CFO Speech Notes: 5G Update
CEO & CFO SPEECH NOTES 5G UPDATE 5 DEC 2018 ROBYN DENHOLM – CFO Welcome Welcome everyone to today’s presentation and thank you for being here for those who have joined us in the room here in Telstra’s Customer Insight Centre, as well as those who are joining us via the livestream. I’m Robyn Denholm,
Slide 3: FY19 free cashflow profile and CEO welcome
I also want to provide some colour on the profile of our free cashflow on a guidance basis, H1 versus H2, across FY19 and why it will be different compared to previous years. In recent years we have reported about a third of our full year free cash flow in the first half of the year. However for FY1
Slide 4: T22 strategy update
Against this background, 5G heralds a new opportunity for growth particularly for those that will be leaders in this new technology as indeed Telstra is. Before we get into 5G however, I want to provide you with an update on our T22 strategy. I want to take a moment to remind you of the rationale an
Slide 5: T22 Update (delivery)
Slide 5 – T22 Update (delivery) For our customers we have removed excess data charges on our new consumer mobile plans which gives them greater cost certainty and eliminates a major pain point. We already have around a quarter of a million customers enjoying Peace of Mind data. We have also offered
Slide 6: Why 5G matters
One reason to be optimistic is I believe that ultimately the nbn operating environment will improve, particularly once the rollout is complete. The current wholesale price for the nbn is unsustainable and is leading to operators starting to exit the business and will ultimately lead to higher prices
Slide 7: How 5G will be different
In the meantime just a few areas where 5G will be different. • Firstly, latency. Latency on 5G will be 1/30th (one thirtieth) of what we experience on 4G. This opens up opportunities in markets where milliseconds count such as automotive, healthcare, transport, mining, oil and gas and virtually all
Slide 8: Telstra's 5G progress and network rollout
Connected Car, one of the world’s first 5G esports experiences, and the world’s first end-to-end 5G non-standalone data call on a commercial mobile network. • In August, we announced we had started switching on 5G technology on our network on the Gold Coast quickly followed by the first regional cel
Slide 9: 5G Update Disclaimer
5/12/2018 5G Update 5 December 2018 Disclaimer These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different f
Slide 10: 5G Update Agenda
5/12/2018 5G Update Robyn Denholm Chief Financial Officer and Head of Strategy Agenda 12:15pm 5G and loT showcases - pre 1:00pm Introduction and Agenda Robyn Denholm 1:05pm 5G Update Andrew Penn 1:30pm 5G Network Nikos Katinakis 2:00pm Bringing 5G to Life for Michael Ackland consumers & small busine
Slide 11: 5G Update: Welcome
5/12/2018 5G Update Andrew Penn Chief Executive Officer Welcome 3
Slide 12: T22 update
5/12/2018 T22 update Rationale and context Investing to create platforms for the future (up to $3b in incremental investments FY16 - FY19) We are well progressed in this program of work ■ Digitising our ■ Digitising our business network and to enable more ensuring 5G effective customer and readine
Slide 13: Why 5G matters
5/12/2018 Why 5G matters Transformative technology Why is 5G different? ■ Improvements to latency; empowering technologies in markets where milliseconds count such as automotive, healthcare, Artificial transport, mining, oil and gas, and Intelligence virtually all forms of robotics and Edge Computi
Slide 14: How will we experience 5G?
5/12/2018 How will we experience 5G? Capability horizons Customers benefit from incremental speed and latency to enhance experiences in gaming, broadcast services and security; anticipated lower cost per Gigabyte Customers will see increasing improvements in the products and services available to th
Slide 15: 5G Network: The Telstra Mobile Network
5/12/2018 5G Network Nikos Katinakis Group Executive, Networks and IT The Telstra Mobile Network We have more than We have Our network has Our mobile network has the more than 9,700 fewer largest mobile sites deadspots 2.5m ... with ... and more km2 coverage 8,300 reliable mobile network vastly more
Slide 16: The road to 5G
5/12/2018 The road to 5G 5G 5G 5G 2G 3G 4G 1G Voice Voice Voice Voice Voice Voice Voice Messaging Messaging Messaging Messaging Messaging Messaging Data Data Data Data Data Video Video Video Video Connected Connected Connected society society society Efficient Capacity Real-Time Close Massive Connec
Slide 17: Key enablers of 5G
5/12/2018 Key enablers of 5G Beam-forming Automation Distributed core Wider channel Software Defined bandwidths Networking (SDN) Self-optimising increases flexibility & Increased capacity networks & network resiliency & enables efficiency elasticity lower latency Multi-user MIMO Network Function Net
Slide 18: Data usage growth offset by network efficiency and unit costs
5/12/2018 Rapid growth in data usage is offset by improved network efficiency and unit costs Mobile product unit cost per GB; Mobiie traffic growth We are globally aligned in exploring leading 5G use cases 10
Slide 19: Scaling the network and introducing new capabilities
5/12/2018 Beyond our initial network readiness in 2018, we are scaling our network and introducing new capabilities Subject to outcome of the 3.6 GHz auction Australia’s 5G bands are well aligned with key global markets 11
Slide 20: Fixed wireless broadband use cases
5/12/2018 Fixed wireless broadband use cases Numerous models 5G offers increased A number of elements are The technology is for wireless opportunity given the needed to do fixed continuing to evolve: broadband today: increase in capacity and wireless at scale: performance: • Home wireless broadband
Slide 21: Bringing 5G to life for consumers & small businesses
5/12/2018 Bringing 5G to life for consumers & small businesses Michael Ackland Group Executive, Consumer and Small Business Immediate benefits for consumers and small businesses 5G experiences Mobile Mobile broadband Quality of Service and propositions handsets devices ■ 5G improves experience ■ 5
Slide 22: First to market with 5G devices
5/12/2018 First to market with 5G devices Immediate benefits for consumers and small businesses 5G experiences Mobile Mobile broadband Quality of Service and propositions handsets devices ■ 5G improves experience ■ 5G chipsets significantly ■ Ultra high speeds for ■ Differentiated products on 4G
Slide 23: Planning for future 5G use cases
5/12/2018 Planning for future 5G use cases Emerging 5G-enabled use cases Cloud-based gameplay on mobile or fixed broadband Gaming and e-sports Consumers ' " HD on-demand video across Ce social, web and applications Immersive video Mobile office with access to ne cloud-based solutions on 5G Small bus
Slide 24: Realising value through 5G connectivity, devices and use cases
5/12/2018 Realising value through 5G ' connectivity, devices and use cases 0 5G f) 5G 5G Connectivity Devices Use Cases Differentiated connectivity and service for each use case Access to applications and services Access to leading, mobile, Value realised through media and gaming devices new u
Slide 25: Innovative 5G use cases
5/12/2018 Innovative 5G use cases Indicative timeframe to market and revenue opportunity Use cases enhancing industries Cross industry use cases: Industry use cases: Enhanced speed and High speed and bandwidth and bandwidth low latency Mobile Media Infrastructure Enhanced Stadium Smart Cities Enhanc
Slide 26: 5G adoption across mining operations
5/12/2018 5G adoption across mining operations More Higher data Higher density Higher High capacity accessible rates at sensor density heavy infill solutions spectrum cell edge deployments vehicle platooning for drill pads • New mid and high • Removes the need • Low power • Allows for use of • Suppo
Slide 27: Future opportunities in 5G
5/12/2018 Future opportunities in 5G Christian von Reventlow Group Executive, Product & Technology What do customers expect the future to be? 19
Slide 28: Media on the Go and Game Streaming
5/12/2018 Media on the Go Netflix Continues to Grow Internationally Netflix's worldwide streaming subscribers at the end of the respective period* Game Streaming Twitch Streaming Hours Source: Kleiner Perkins Internet Trends 2018 20
Slide 29: Augmented and Virtual Reality
5/12/2018 Augmented Reality The Digital-Real-World Age of Pokemon Go player Source: MFour (July 2016) Augmented and Virtual Reality Entertainment & Connected Workers AR/VR Market in 2025 Source: Goldman Sachs Equity Research (2016) 21
Slide 30: Connected and Automated Driving
5/12/2018 Augmented Reality Smartphone replacement 76% of Generation Z expect to wear contact lenses that can take pictures Source: DT/Cognizant Study (270 people) Connected and Automated Driving 4 trends for disruption Desirable products Electrification Battery tech Charging stations Efficiency Reg
Slide 31: Drones and Consumer Robotics
5/12/2018 Drones us internet users' primary Attitude Toward Drone Delivery Services, by Generation, June 2016 % of respondents ■ I like the idea very much ■ I like the idea somewhat I neither like nor dislike the idea ■ I dislike the idea somewhat ■ I dislike the idea very much Note: millennials n=3
Slide 32: 5G - A technology for the next decade
5/12/2018 Intelligent Environment Source: Ericsson Mobility Report (June 2018) 5G - A technology for the next decade required strictly 5G enabler strong 5Ga Source: A Nuanced Perspective on 5G Use Cases, ATKearney technologies Alternate available Use cases to become Use cases in prototype or proof o
Slide 33: Q&A
5/12/2018 There will be business •• Telcos are ideally positioned for the future world •• Telstra is investing for the short and longterm on 5G •• Technologists and customers are aligned Q&A 25