Telstra Outsources Wireless Products to El Cheapo Third Party

http://www.telstra.com.au/abouttelst...ObjectID=35556

Media Releases 17 October 2005



Telstra increases choice & reduces costs of mobile devices to customers
through Brightstar exclusive sourcing agreement
This media release includes:


Telstra Corporation today announced that it has awarded Brightstar, a
leading distributor and provider to the wireless telecom industry, an
exclusive sourcing agreement for all of Telstra's wireless phones, devices
and accessories to better support its customers.

Under the terms of the agreement, Telstra will leverage Brightstar's
relationships with major manufacturers as well as its global sourcing and
procurement power to obtain mobile devices that increase Telstra's product
portfolio while reducing overall product costs.

"We are looking across all of our business to improve efficiencies and
achieve more effective supply chain management," Telstra Chief Operations
Officer, Mr Greg Winn, said. "This partnership will drive device costs down
due to Brightstar's procurement power, which will make us more competitive
and provide additional benefits to customers and shareholders."

Group Managing Director of Telstra Consumer and Marketing, Mr David
Moffatt, said Telstra customers would benefit directly from the Brightstar
arrangements.

"We will be in a position to introduce the best range of handsets from
global suppliers," Mr Moffatt said. "This will ensure that our customers
have the latest devices, tailored to our specifications, at more competitive
prices.

"Telstra had discussions with Brightstar as early as December 2004.
Since then we have been investigating ways to improve our speed to market
and cut costs without reducing service levels or access to new technologies
to our customers."

The agreement between the two organizations, which is for one year
with an option to renew in future years, designates Brightstar to procure
more than two million wireless devices annually on behalf of Telstra.

Brightstar and Telstra will collaborate on defining product strategies
and identifying portfolio requirements. Brightstar will then be tasked with
working with global manufacturers to obtain the correct products, negotiate
best pricing, purchase and deliver them to Telstra's specifications.

Telstra Managing Director, Wireless and Mobility, Ms Holly Kramer said
that: "Following an extensive evaluation process, we believe Brightstar is a
perfect choice for Telstra because of its size, scale, global sourcing
experience and relationships with manufacturers."

Brightstar's Chairman & CEO, Mr R. Marcelo Claure said: "We are
extremely pleased to have been chosen to support Australia's leading
telecommunication's company.

"Brightstar has implemented our proven model with many of the leading
carriers around the world, including Verizon, America Movil and Telefonica,
among others. Brightstar's model focuses on cutting time and costs out of
the supply chain and introducing new products and technologies. We are
encouraged by the opportunity to implement those same successes here in
Australia."

Brightstar, located in Melbourne with sales offices in Sydney,
Brisbane and Perth, was incorporated in Australia in October 2004 and
operates as a subsidiary of Brightstar Corp. the wireless industry's leading
value-added service providers for device distribution and logistics. Founded
in 1997, Brightstar now operates 30 facilities in 22 countries and serves
160 network operators and more than 15,000 resellers, retailers and agents.

Brightstar will procure, sell and customize over 24 million devices in
2005 with an expected turn over in excess of $2.5 billion.


-------------------------------------------------

About Brightstar
Brightstar Corp. is a leading distributor and provider of value added
supply chain services to the wireless telecom industry, and also designs and
manufacturers products under licensing agreements with leading
manufacturers. Headquartered in Miami, FL, Brightstar has operations in
Argentina, Australia, Barbados, Bolivia, Brazil, Chile, Colombia, Costa
Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, India,
Jamaica, Mexico, Paraguay, Peru, Puerto Rico, Trinidad & Tobago, Uruguay,
the U.S. and Venezuela.

The company serves over 160 network operators and 15,000 resellers,
retailers and agents around the world and also represents many of the
world's leading wireless manufacturers. During the year ending 2004,
Brightstar's revenues exceeded US$1.7 billion.

For more information, visit www.brightstarcorp.com.au


Telstra Media Contact:
Warwick Ponder
Tel: 02 9298 4619
Mob: 0409 369 711


Brightstar Media Contact:
Sally Lange
Tel: 00111 847 573 2616
E-mail: sally.lange@us.brightstarcorp.com


Reference Number: 305/2005

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