Telstra takes impairment charge

Telstra Corporation Ltd says it expects to record an impairment charge against the
carrying value of its Octave business in China of about $138 million.
Octave supplies mobile phone content and provides technical services to mobile
platforms.
Telstra bought a 67 per cent stake in the Octave business in February 2009 for $259
million.
"Telstra first highlighted a potential impact on the Octave business in August 2010
following regulatory rulings that were expected to constrain the Wireless
Application Protocol (WAP) market in China," Telstra said in a statement.
"The impact of the rulings has been clarified and consequently, Telstra has now
updated the Octave business plan with the result it is expected to record an
impairment charge against the carrying value of the Octave investments of
approximately $138 million."
Telstra said the write-down did not affect guidance, which "explicitly excluded
asset impairments and proceeds from asset sales".
The telco said its other businesses in China, such as Sequel and LMobile, "continue
to perform well".
In a separate statement, Telstra said the company's group managing director of
enterprise and government, Nerida Caesar, will leave the company early next year.
Ms Caesar, who has been in the role since June 2009, was leaving to "pursue another
career opportunity" and would be replaced by Paul Geason, Telstra said.
Mr Geason is currently group managing director of Telstra Wholesale.
Telstra said Glenn Osborne, who is currently executive director of Telstra Wholesale
Sales, would lead Telstra Wholesale on an acting basis from Friday.