1. HOW CAN EUROPEAN TELCOS
OPERATE SUCCESSFULLY IN ASIA
PACIFIC
Tom Homer, Chief Executive – EMEA
Telstra International

2. THE LURE OF
ASIA PACIFIC
Asia will account for more 44% of the world’s
than half of global output in 2050 internet users are in Asia
- Asia Development Bank - Internet World Stats
The Asia Pacific IT
Six of the world’s fifteen
market in 2011 was worth
financial centres are in
US $461 Billion, in a $2
the Asia Pacific region
Trillion Global Market
- Forbes
- Forrester
World Gold Council | Document Title | Date 2

3. THE NEW TELECOMS
EL DORADO
Population boom that’s young, savvy and
internet-hungry
World’s highest number of telephone and
broadband subscribers
World’s production centre – access to cost-
effective labour
Increasing disposable incomes
= One of the most attractive regions
for Telecoms growth

4. THE TELCO JOURNEY IN ASIA
IS VARIED AND DIVERSE
Key factors to consider
• Vast distances even across “intra-Asian”
networks
• Bandwidth prices often more expensive than in
the West
• Geographically ‘fragile’ and subject to natural
disasters
• Cautions around political and regulatory
environment
• Extremely culturally diverse – even within Asia
• Significant opportunity for Telcos but requires
investment and a long-term approach

5. INTRA-ASIAN DISTANCES
ARE EXTREMELY VAST
London-LA London-HK Tokyo-Melbourne
8,778km 9,641km 9,583km
Auckland-Delhi
12,482km
World Gold Council | Document Title | Date 5

6. TECHNOLOGY
& INFRASTRUCTURE
• IP Transit prices vary widely across
Asian cities and surpass those of
Europe and the US
• Gigabit Ethernet prices are declining
yet remain high in Asia
6
Source: Telegeography

7. GEOGRAPHIC DIVERSITY
OF ASIA PACIFIC
TELSTRA CONFIDENTIAL - NOT FOR DISCLOSURE 7

8. POLITICAL & REGULATORY
FACTORS
8

9. CULTURE IS THE MOST IMPORTANT
FACTOR IMPACTING TELCOS IN ASIA
• 100’s of languages and several writing systems
• Mentality and business practices differ immensely
even within region
• Business often transacted on trust and relationships
• Rule of law may be weak – unenforceable contracts
• Understanding of local factors is critical
TELSTRA CONFIDENTIAL - NOT FOR DISCLOSURE 9

10. ASIA – THE OPPORTUNITY FOR
TELCO SERVICE PROVIDERS
• One of the largest and fastest growing telecoms spend region
• More service providers are now based outside of Japan, North America
and Europe
• Relatively few truly pan-Asian network providers
• To succeed in Asia, local understanding is imperative
• Telstra International’s Asian expertise has been built up over many
years

11. www.telstrainternational.com