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  1. Below is a news release documenting Paul Budde's prediction of an $81
    billion market in broadband by 2010. (Budde is one of Australia's leading
    telecommunications industry analysts.)

    Quadtel is a supplier of the ADSL modems that subscribers need to connect to
    broadband, using products manufactured by the world market leader in ADSL,
    Alcatel.

    If correct, the analysis means that Quadtel is set to post explosive growth
    figures as the leading distributor of ADSL modems in Australia.

    In addition, Quadtel is also moving into the marketplace for the niche
    products referred to in the article, which includes such technologies as
    firewalls, URL filtering products and voice gateways.



    BROADBAND THE DECADE'S BOOMER, SAYS BUDDE.
    By Alan Wood
    May 1 2002


    Independent IT and telco analyst Paul Budde says broadband will be the next
    cash cow for the telecommunications industry, and telcos that focus too much
    on mobile or narrow band networks will suffer.

    Mr Budde, speaking on industry trends in Sydney today, said the Australia
    telecommunications market would be worth $90 billion in 2010 compared to $38
    billion in 2001.

    Broadband - the transmission of large amounts of electronic information
    including telephone calls, television and the internet, often over phone
    lines, cables or satellite - would account for $81 billion of that, he said.

    Mr Budde said the telecommunications market was currently dominated by
    commodities-based products, and telcos would need to develop niche products
    to help grow revenues.

    "The nature of commodities is prices are going down, margins are going
    down," he said.


    "On the other side there is this value added element - value added services
    need to be bought to the network in order to have these extra margins."

    He said the broadband network offered telcos more opportunities to build
    such value-added applications, more than mobile networks or narrow band
    networks.

    He said mobile would remain voice driven, peaking at $7 billion annual
    revenue in 2002/2003 and dropping to $5 billion by 2010.

    "There are far more opportunities on the broadband network to make lots of
    money out of it for companies, organisations as well as the telcos, than
    there are on the mobile network," Mr Budde said.

    "I think 3G (mobile) is dead - I think we will never see the introduction of
    3G. If anything happens it will be 4G towards the end of this decade".

    Carriers including Telstra, Optus and Hutchison Australia have said they're
    committed to the development of a 3G mobile network, with Hutchison planning
    to roll out a network in late 2002/early 2003.

    Mr Budde said "killer applications" on the broadband network would include
    family-based content, for example, relatives sending personal videos from
    one side of the world to the other.

    He said only 150,000 Australian homes currently had broadband services,
    whereas more than 50 per cent of all 7.2 million households could be
    addressed by broadband.

    Mr Budde said broadband development was being held back by a lack of
    foresight and network development by the larger telcos, including Telstra.

    He said the Telecommunications Industry Ombudsman received around 70,000
    complaints per year compared to around 7,000 for the banking industry.

    "Unfortunately the vision is not there and therefore you will start seeing
    reactive situations, rather than the planned organisation of how to
    implement broadband in the market," he said.

    He said with the Federal Government bringing new emphasis to broadband
    companies like Canberra-based TransACT, Victorian-based Neighbourhood Cable
    and other regional service providers would emerge with greater prominence.

    AAP


    For further information contact Denis Orrock (02) 8852 4600


    About Quadtel Limited

    Sydney-based Quadtel Limited is a leading distributor of broadband products
    and services to the corporate, government and SME sectors. Through the
    company’s fully-owned subsidiary Marketing Results Pty Ltd, Quadtel is also
    Australia’s leading distributor of home and business technology products to
    the retail and mass merchandise markets. With a focus on best-of-breed
    product lines, Quadtel has formed distribution relationships with
    world?leading vendors including Alcatel, Foundry, D-Link, Network
    Associates, CacheFlow, Intuit, Symantec, ACCO and Maxtor. Quadtel is listed
    on the Australian Stock Exchange (ASX: QTL) and the Canadian Venture
    Exchange (CDNX: QTL) and has offices in Australia, Singapore, Malaysia and
    Canada. For more information visit www.quadtel.com or phone Quadtel’s head
    office in Sydney on +61 2 9492 4300.

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