SingTel Optus - Australia

SingTel Optus Pty Limited is the second largest telecommunications company in Australia, and is a wholly owned subsidiary of Singapore Telecommunications (ASX:SGT).

The company primarily trades under the Optus brand, while maintaining several wholly owned subsidiary brands, such as:

• Virgin Mobile Australia - mobile
• Boost Mobile - mobile
• Uecomm - network services
• Alphawest - ICT services

Optus also has a 50% stake in OPEL Networks.

The company was originally known as Aussat Pty Limited prior to privatisation, when it became Optus Communications Pty Limited. It was later renamed to Cable & Wireless Optus Pty Limited before changing again to SingTel Optus.

Network Services

Optus owns and operates its own network infrastructure, as well as using the services of other network service providers, most notably Telstra Wholesale.

• GSM/GPRS network in all states
• 3G network currently in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra.
• Broadband IP Network
• Satellite

The Hybrid Fibre-Coax Rollout

Optus is the single largest customer of their competitor, Telstra. To become competitive, Optus recognised it needed to have its own local phone network. Optus, Seven Network and American cable company Cablevision, formed the Optus Vision consortium. [News Corporation, PBL and Telstra created the rival Foxtel consortium].

Telstra's copper twisted pair local phone network did not in the early 1990s have the capability to deliver Foxtels pay television to consumers.

When Telstra and Optus could not agree on terms for a joint broadband cable rollout, they began laying out two independent and parallel cable networks, on top of Telstra's existing copper network, at a combined cost estimated at over A$6bn.

• Telstra focused on creating a broadband network specifically for broadcast
• Optus recognised an opportunity to design the network so that it could also be used to provide a telephony product.

The network was initially used to broadcast Cable TV only. The new Optus phone network launched Optus telephony services in 1996.

Satellite

Optus Satellite delivers rural and regional Australia enhanced capacity for two-way communications services (VSAT) and extended reach for direct-to-home television services.

The lastest Optus’ D-series satellites enable Optus to provide additional services to r customers with growth opportunities in the Subscription TV, and ethnic services broadcast sectors, as well as additional in-orbit redundancy out to the year 2020 and beyond.

The new generation D-series offers increased satellite performance and provides continuity of service for Optus Satellite customers as Optus B-series Satellites near end of life.

• The Optus D1 satellite was launched in October 2006
• The Optus D2 Satellite was launched from French Guiana in October 2007. It will replace the Optus B3 satellite which has been in operation since 1994.
• The third D-series Satellite, Optus D3, is planned to be delivered in 2009

The D2 Satellite further expands Optus' existing satellite fleet, providing unique communications capabilities unmatched by any other telecommunications company in Australia.

The Optus D-series Satellites will increase Optus’ fleet capacity by more than 30 percent and represents an overall investment in excess of A$600 million.

Products and Services

Optus is focused on providing broadcasting and broadband services to customers, as well as providing wholesale satellite access to companies delivering subscription TV and internet services.

It provides services both directly to end users and also acts as a wholesaler to other service providers.

Through its OptusNet brand, it provides broadband, wireless and dial-up internet services.

Key Optus products and services include:

Fixed Telephony

• Residential and Commercial POTS - for local and long distance telephony
• Commercial VoIP and VoDSL
• Intelligent Network applications - such as free call, 1300 and Interactive voice response services

Mobile Telephony

• GSM/GPRS network in all states
• 3G network currently in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra.
• Satellite Telephony covering all of Australia.

Internet Access

• Residential Dial-Up Internet in All States
• Residential Broadband Internet (via cable and DSL) in all states (except Tasmania and the Northern Territory).
• Satellite Internet
• Commercial and Wholesale internet access
• Secure Gateway services for Federal Government departments

Cable Television

• Optus Television service provided in Sydney, Melbourne & Brisbane, including Foxtel Digital

Leased Lines

Data Transmission

Data Centre Services

The Optus Data Centre at Ultimo delivers 24x7 hosting, co-hosting and networking solutions, coupled with Optus IP-VPN, Ethernet and internet services, providing a single point of accountability.

The hosting services are fully scalable, offering high-speed internet access via an Ethernet port, with a variety of bandwidth options.

Resellers

Retail services are sold to customers via phone, internet or through retail outlets, especially franchise chains such as:

• Optus World
• Network Communications
• Strathfield
• Telechoice
• Allphones

Current Updates

SingTel Optus has good revenue growth, however profitability has been hit by competition and capex. Whilst SingTel Optus can be expected to continue its revenue growth, profitability is not likely to recover until Optus’ 3G and DSL investments start generating new revenue.

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