PUBLIC payphones provide an important community service. Telstra wants to clarify the facts about Telstra-operated payphones and encourage the community to provide feedback.

Today more people have mobile phones, fewer people use payphones, and many private companies operate payphones.

Contrary to some reports, Telstra is not considering removing payphones required for public health and safety reasons, stand-alone payphones in remote areas, or those subsidised by the universal service obligation.

Of the Telstra payphones that we are considering removing, a large number are in metropolitan areas in sites with more than one phone. Of the remainder, the majority is located on private property and could be replaced by privately owned payphones. All of those we are considering removing are making a financial loss.

As has occurred in the past, Telstra will continue to consult with the public when we consider removing a payphone. This kind of public consultation resulted in us reversing our intent to remove about 100 payphones in the last year.

Telstra will continue to: put a clear notice on any payphone we intend to remove or relocate; provide three months notice and proactively consult the affected community; take into account the response of local government, parliamentarians and community groups; and consider each situation on a case by case basis.

We encourage your feedback for or against any proposed payphone removal, by completing a feedback form at www.telstra.com.au/payphoneservices/contactus.htm; calling 1800 011 433; or writing to Payphone Siting Manager, Locked Bag 6658, Sydney, NSW, 1100.

D. Moffatt,

Group Managing Director,

Telstra Consumer and Marketing.