At Telstra we are fiercely proud of our network leadership. It is a network in which we have invested billions of dollars over many years to provide the best experience for our customers.

I know many of you have chosen Telstra because we have the best network. This is increasingly important in a world where you use our network to do more and more every day, and where other companies use our network to provide new services to their own customers.

We see this through the volume of traffic on the network, which has grown significantly. This dynamic is only going to increase over time with the rate and pace of technology innovation that we are all experiencing.

Over the past few months we have experienced some network interruptions that have impacted you, our customers. All of us at Telstra are deeply sorry for the inconvenience this has caused.

I am writing this note today to update you on what we are continuing to do to address these issues.

In May we announced the results of a review into our mobile network. We are very advanced in implementing the recommendations from that review. We have also recently completed an end-to-end review of our core network and IT systems, pinpointing sources of potential risk.

As a result of this work we will be investing $250 million from our existing capital program, within our 15% capex to sales ratio, over the next 6 to 12 months to provide a higher degree of network resilience and improved network performance. This includes investment in three key areas:

• enhancing the mobile network’s resiliency, to improve recovery time and create more effective real time monitoring

• improving reliability and resiliency within the core network

• increasing current ADSL broadband capacity to meet increasing customer demand

These are important measures and I want to assure you that I am committed to doing everything we can to strengthen our network for you.

All network operators around the world face the risk of disruptions whether they be the consequence of weather, accidental damage, hardware or other failures. What I am committed to though is continuing to invest in building the durability and capability of our network, and in our ability to respond quickly if things do go wrong to minimise the impact on customers. For example, changes already made mean that our recovery time on the mobile network has been substantially improved.

What I can also assure you is that we are spending a lot of time working on the network of the future and imagining a world where you will be even more connected, with more devices and services taking advantage of more that the network can offer. The investment I am communicating today is an important step in building the platform for these plans which I will share with you later in the year.

More than ever, our devices allow us to connect with family, friends, work, entertainment, apps and services and other devices. We recognise this and we are committed to delivering the network which gives our customers the best experience.