Good morning, and welcome to Telstra's Full Year Financial Results 2022 Results Presentation. My name's Nathan Burley, Head of Investor Relations. I respectfully acknowledge that I'm joining today from the lands of the Kulin Nation. On behalf of Telstra, I would like to acknowledge and pay my respects to the traditional custodians of country throughout Australia and recognize their continued connection to land, waters, and culture. We pay our respects to their elders past, present, and emerging. This morning, after presentations from our CEO, Andy Penn, and CFO, Vicki Brady, we'll be taking questions from analysts and investors and then media. I'll now hand over to Andy Penn. Andy?
Well, thanks very much, Nathan, and good morning and welcome to Telstra's results announcement for the financial year ended 30 June 2022. It was a year in which we saw our underlying business continue to grow and a year in which we closed out our T22 strategy and saw the benefits from this flow through to our customers, our employees, and to our shareholders. It was also a year in which we announced the transition to T25, a strategy for growth, a strategy that leverages the foundation and capabilities that we have built over the last few years. Of course, it is also my last results announcement as the CEO of Telstra, and I am incredibly proud of what we have achieved as a team.
When we launched our T22 strategy four years ago, we were in part, of course, responding to the operational and financial headwinds created by the rollout of the NBN. We were also responding, though, to the technology innovation that we could see around us and the growing rate of digital adoption. We knew that we needed to fundamentally transform the company to simplify, digitize, to set bold aspirations and take radical intervention, and that is exactly what we have done. Telstra is a very different company today, and while of course there is always more to do, we are much better equipped to face the very exciting digital future ahead. This is important because the world is also a very different place. What we could not have foreseen when we launched T22 was COVID and the other seismic economic, political, and social changes that have unfolded.
I'm conscious, therefore, that while there is obviously a keen interest in the details of our results today, which we will share, and they are strong results, the context in which we are presenting them is also very important. I wanna start, therefore, by referencing these key dynamics, how we're positioned to respond to them, and how we will address the obvious questions that they give rise to in our presentations this morning. Firstly, the rate of digital adoption has clearly gone to a whole new level, and we are sitting on the cusp of another wave of exciting technology innovation with AI, Edge Cloud, LEO sats, ORAN, and of course, by the end of this decade, 6G. COVID has taught us the convenience of doing things online, and that we can now study and work from home very effectively.
This is great news for us because through T22, we are so well positioned to grasp the opportunities it presents. Because like many, we have fully embraced hybrid working and have more than 17,000 people working in Agile. Our investments in digitization of the business, our clear leadership in 5G, the partnerships that we have announced with Microsoft, OneWeb, Quantium, Viasat, and our equity in cutting-edge technology through Telstra Ventures and directly in Silicon Quantum Computing will all be important assets for the future. Too is the decision to set up our infrastructure assets into separate standalone businesses and the investments we are making through InfraCo into the national intercity fiber upgrade to boost connectivity right the way across Australia. We also announced a landmark network sharing agreement with TPG Telecom.
This deal, subject to approval by the ACCC, will be a win for customers across Australia, enabling more competition and choice, and enabling regional customers to be better connected than ever before at exactly the time when more people are choosing to live regionally. Secondly, however, despite the exciting technology opportunities and the growth that this will support for us, there is no doubt that there is considerable economic uncertainty in the world today. For Telstra, the good news is the demand for our core underlying business has never been greater. Our balance sheet is strong, and while there is growing inflation, there are some natural hedges in our business too. Vicki will take you through the detail of all of this in her presentation. While of course we are not immune to the changing economic environment, we are better placed than many.
Thirdly, we continue to see the world raising the bar on ESG in the face of growing climate catastrophes, including the role that businesses must play. You have heard me say before that we can only be successful for our shareholders when we are also successful for our customers, for our people, and for the communities that we serve. We have significantly increased our focus on ESG over recent years, and it is a key platform in our T25 strategy. We have taken a leading and bold position on reducing the impact of our business on the environment, on supporting vulnerable customers, on diversity and inclusion, and responsible business operations. I know that we do not always get it right, but when we get it wrong, we own it and we fix it, and we learn from the experience to do better next time.
Finally, the geopolitical environment is more fractious than most of us have seen in our lifetimes. Like all businesses, we are seeing disruptions from this, with the largest impact being on the supply chains of key network and technology components. It is why our partnerships with key technology providers are so important. Of course, we're also seeing increasing cyber threats and we are working around the clock to protect our own networks, blocking unprecedented levels of malicious activity, while at the same time helping our customers to protect themselves and their businesses. As Chairman of the Federal Government's Industry Advisory Committee on Cybersecurity, I will be giving a speech at the National Press Club on the changing threat environments, its implications, and what we need to do in response in a couple of weeks' time.
We have also significantly strengthened our relationships and our partnerships with government, who understand that telecommunications is the platform for the digital economy, and Telstra's is by far the biggest, it's the best, and it's the most strategic. It is crucial for the economic success of the nation and national security and our social cohesion. Last month, we announced the completion of our acquisition of Digicel Pacific in partnership with the Australian Government, which sees us take 100% equity in this strategically important asset. When we kicked off T22, we could not have foreseen these external factors, but we are certainly in a better position to face them because of T22. With that, let me turn to the results. FY 2022 was a pivotal year for us.
As well as marking the end of our T22 program, we have also now absorbed the overwhelming majority of the financial effects of the rollout of NBN, and a growing momentum in our underlying performance is clearly starting to show through. Those financial impacts saw reported total income declines of around AUD 700 million in one-off NBN receipts and AUD 300 million in NBN commercial works. Total income therefore decreased 4.7% to AUD 22 billion on a reported basis. While net PAT decreased 4.6% to AUD 1.8 billion, earnings per share was down 7.7% to AUD 0.144 per share on a reported basis. The declines reflect both the impact of the NBN and one-off gains from asset sales last year.
In contrast, though, underlying EBITDA on a guidance basis increased 8.4% to AUD 7.3 billion, driven significantly by an outstanding performance in the year from our mobiles business. Underlying EBITDA included an in-year NBN headwind of AUD 340 million. Now, this is the last year of in-year NBN headwinds, and it brings the total cumulative impact of NBN on Telstra's EBITDA to AUD 3.6 billion per annum. That was a very large and very difficult pill to swallow, but we have swallowed it. Encouragingly, underlying EPS was up 48.5% to AUD 0.144 per share. A strong start against our T25 ambition of high teens CAGR from FY 2021 to FY 2025.
Also, the board has resolved to pay a fully franked dividend of AUD 8.5 per share, bringing the total dividend for the year to AUD 0.165 per share. This includes an increase in the ordinary dividend from AUD 0.10-AUD 0.135 per share and a AUD 0.03 per share special dividend. This, of course, will be the last special dividend in relation to the NBN one-off payments. It represents the first increase in the total Telstra dividend since 2015.
While it will increase the payout ratio in the near term, it recognizes the confidence of the board following the success of our T22 strategy, the strong results in 2022, our T25 strategy and aspirations for high teens EPS growth from FY 2021 to FY 2025, the strengthening of our balance sheet, and importantly, a recognition by the board of the importance of the dividend to our shareholders. I will now turn to the operating highlights for the year. Mobiles, as I have said, has performed exceptionally strongly. We added 155,000 net retail post-paid mobile services. That included 121,000 branded with a strong contribution from Enterprise, clearly demonstrating the benefits of our 5G leadership. Retail prepaid unique users were up 215,000, and prepaid services revenue grew very strongly at 14.2%.
In wholesale, we added 218,000 services, and we also added over 1 million IoT services. Our performance in fixed for consumer and small business customers has been more challenged, particularly as we are now at the tail end of the NBN migration. Net new retail bundles were negative 87,000, although bundle and standalone data ARPU increased by 2.4%. Notwithstanding the disappointing fixed IO performance, we are confident of restoring financial momentum by leveraging the many value-adding home broadband features that Telstra offers. I also want to applaud the government's recent advice to NBN Co. and NBN Co.'s subsequent decision to withdraw its special access undertaking and work towards a better industry pricing model. We look forward to an expedited outcome that improves the quality of service for all customers at a more economically sustainable industry.
In Enterprise, in line with our previously communicated aspiration, we return to growth at both the income level and the EBITDA level. Fixed Enterprise EBITDA grew by 2.3% with NAS EBITDA growing by AUD 152 million to offset weaknesses in data and connectivity. InfraCo Fixed income was AUD 2.4 billion, with core access revenues, including NBN recurring receipts, up 3.1%. InfraCo Fixed growth will be further supported by our inter-capital inter-city fiber project announced in February. This will provide ultrafast connectivity between capital cities and improved regional connectivity. We are close to finalizing contract negotiations for the first stages of the build, and we have held very detailed discussions with customers, including, of course, signing up Microsoft as a major anchor tenant.
We've learned a lot through this process, and while some of the economics have changed from what we announced, which Vicki will take you through shortly, the returns are still attractive, and in fact, the level of our conviction on this strategically important project has increased. Telstra Health has also had a strong year, both operationally and strategically, as it continues to scale. Telstra Health revenue for the year was up 13% or 51% when you include MedicalDirector and the PowerHealth acquisitions to AUD 243 million. We've also made significant progress in our initiative to launch Telstra Energy, including gaining the necessary license approvals, building the offering into our new digital environment, and conducting a limited number of customer trials.
However, clearly the retail energy market is currently going through a period of severe dislocation, and given this, we will not be scaling in FY 2023. We have received around 10,000 expressions of interest from customers, and our intention is to expand our trial to these customers this financial year while we keep the market dynamics under review. Of course, this has obvious implications for our aspiration to be a top five retail energy provider by FY 2025, and we will update the market on our plans as the market dynamics become more certain. Finally, on our operating highlights, underlying fixed costs were down AUD 454 million, and total operating expenses were down AUD 906 million or 5.8%. In summary, FY 2022 has seen our core business perform strongly. Our mobiles result was outstanding.
Consumer and small business fixed grew in the second half. Enterprise returned to growth at both the top line and the bottom line. We have started to realize the benefits of setting up our infrastructure assets as standalone InfraCo businesses. It is clear that we have good financial momentum. The left-hand side of this slide shows the growth that we have achieved in underlying EBITDA in the last three halves. While the chart on the right-hand side shows the evolution of our full year underlying EBITDA, including AUD 7.3 billion for FY 2022, our guidance of AUD 7.8 billion-AUD 8 billion for FY 2023, and our T25 aspiration and ambition for mid-single-digit CAGR to FY 2025. Of course, this statement for FY 2025 is not guidance.
It is an aspiration, which means there are greater risks and uncertainties associated with it being compared with our guidance statements. Nonetheless, the charts clearly demonstrate the financial momentum that we have achieved and our ambition for further growth. We could also see this start to show through in our reported results too, as the transitional effects of the NBN rollout come to an end. The left-hand side of this slide shows the growth achieved in reported EBITDA from AUD 3.5 billion in the first half of this year up to AUD 3.8 billion in the second half. The chart on the right-hand side similarly shows growth in reported earnings per share from AUD 0.059 per share in the first half of this year to AUD 0.085 per share in the second half.
This strong improvement in returns to shareholders is undoubtedly a function of the success of our T22 program. T22 was successful because we were bold. We set ourselves big, ambitious goals and executed with discipline and transparency. As we close the book on that chapter of our history, it is worth reflecting on just how much we have achieved and how much we have changed as a company. We radically simplified our business, reducing the number of consumer and small business in-market plans from 1,800 to 2,000. We now have 10.2 million services on these plans. We removed lock-in contracts and excess data charges and unbundled services for customers.
We have 4.5 million customers signed up to our rewards program, Telstra Plus, and our engagement with members is high, with product redemptions growing more than 80% in FY 2022. Almost half of our sales interactions with our consumer and small business customers are now digital, as well as more than three-quarters of all service interactions. The number of calls coming into our consumer and small business contact centers has fallen by more than 70%. Of course, all of these calls are now answered by somebody in Australia. We brought our licensed Telstra stores back in-house, and all Telstra stores are now operated and owned by us. We rationalized the number of active products in our enterprise business by more than 50%.
Our digitization progress in enterprise has led to 40% of all enterprise services interactions now being conducted through the digital channel. The combined impact of all of these positive improvements to customer experience is reflected in our stronger than ever NPS result, which is up 18 points since the beginning of the program. We have reduced our direct and indirect workforce by more than one-third, and at the same time, we exceeded our target to recruit new capabilities in new areas such as software engineering, data analytics, cybersecurity, and artificial intelligence with more than 1,500 new hires. We achieved our T22 productivity target of AUD 2.7 billion of annualized cost out.
Our 5G network is around twice the size of our next nearest competitor, and we cover 80% of the population with 3.5 million 5G capable devices already connected to the Telstra mobile network. Our infrastructure business is operating as a standalone business unit with increased transparency and the successful sale of the 49% non-controlling interest in Amplitel demonstrates the value opportunities that this has created. In fact, factoring in the tower sale, we have monetized almost AUD 5 billion worth of assets against our original target of AUD 2 billion for the program. Lastly, we are on track to finalize our legal restructure. Pending court approval, we expect to very shortly publish a scheme booklet, which will give shareholders all of the information they need to vote at the scheme meeting to be held on the same day as our AGM in October.
With that, let me officially close out T22 with the final T22 scorecard. Overall, we delivered around 80% of our T22 scorecard metrics. We made significant progress on another five, and we missed four. As there have been no significant changes to these ratings since the half year, I will only make a few comments. Firstly, on underlying ROIC. Our target is to achieve 8% in FY 2023, and the 7% ROIC achieved this year shows we're on track. Secondly, while our employee engagement score of 82 fell just short of the ambitious target that we set ourselves, we have made significant progress, and we are among the top-performing companies globally.
Finally, although the number of Telstra Plus members did not achieve our ambitious target of 5 million, Telstra Plus has been an outstanding success, with the number of members growing to 4.5 million since its launch in just FY 2019. With that, let me close out my final full-year results presentation as the CEO of Telstra. Our T22 program has been a clear success. We are delivering a better customer experience. Our mobile network remains Australia's biggest and best. Agile is transforming how we work, and combined with our hybrid working model, it's helping our people to feel supported and to perform at their best. Our employee engagement has never been higher, and we are a fundamentally different company with an incredibly bright future as we transition to a new-look leadership team and T25, our strategy for growth.
Thank you to all of you for your support and challenge over the years and the keen interest which you have shown in following our progress. It has kept us accountable, and it has helped us increase our conviction in our journey forward. I've loved my time as the CEO of Telstra, but now is the right time to hand over to Vicki to lead Telstra's next chapter as we transition to T25. She is an outstanding leader and will do an amazing job. As I said in an interview recently, you do not generally get the chance to choose the timing of when you become the CEO, but it is a privilege to choose the time at which you step down.
As I look back on my time, and particularly the last few years, undoubtedly, the thing about which I feel the most proud is the people and culture at Telstra. I've had the privilege to work with some incredible people during my time, and the team I leave behind is the best I've ever experienced. I'm delighted that the strength of that team has enabled us to appoint both my successor and a new CFO from within. I offer my congratulations to both Vicki and Michael for their well-deserved appointments. I'd also like to acknowledge that the progress that we have made is due to the combined efforts of that team, the support of our board, and the many dedicated Telstra executives and employees. I want to thank the whole team who have been right behind this incredible transformation.
We are a values-led company with a strong culture and a commitment to serving our customers and supporting the communities in which they live, doing business responsibly and playing our role in ensuring the future success and security of Australia. When I started as the CEO of Telstra in 2015, I did so with a vision. A vision to help make Telstra a world-class technology company that empowers people to connect. When I shared that vision externally, many stakeholders, not unreasonably, believed it was implausible, given what it would be required to achieve it. Nonetheless, as I reflect at the end of my time, I'm incredibly proud to step down after more than seven years knowing that is what Telstra has become. Thank you. With that, I will now hand over to Vicki before we open up for Q&A.
Thanks, Andy. This morning, I'm delighted to provide details about FY 2022 results, which demonstrate our ongoing financial momentum and underlying growth. I will also outline Telstra's focus for FY 2023, as I take up the position of CEO on the first of September. Starting with our income statement on slide 12. The left-hand side shows our reported results, with declines largely due to reduced one-off compensation for migration to NBN. For FY 2022, income was AUD 22 billion, down 4.7%. EBIT was AUD 2.9 billion, declining 3.1%. Net finance costs improved by 24% due to a reduction in both net debt and lower average borrowing costs. Tax increased 24%, resulting in an FY 2022 effective tax rate of 27% compared to 22% in FY 2021.
Reported NPAT declined 4.6% to AUD 1.8 billion, largely due to decline in NBN one-offs. The right-hand side shows our underlying results, which exclude NBN one-offs, restructuring, M&A, and other guidance adjustments. Underlying income declined 1.3% to AUD 21.6 billion. Underlying EBITDA was AUD 7.3 billion, up AUD 562 million or 8.4%. D&A declined 2.1% or almost AUD 100 million. Underlying EPS grew more than 50% to AUD 0.144 per share. The board has resolved to pay a final dividend of AUD 0.085 per share, fully franked, including a AUD 0.075 ordinary and AUD 0.01 special. The FY 2022 special dividend will be the final link to one-off NBN receipts.
This brings total FY 2022 dividends to AUD 0.165 per share, representing a 115% earnings payout ratio. In FY 2022, we also completed a AUD 1.35 billion share buyback, utilizing around half of the AUD 2.8 billion net proceeds from the 49% sale of our Towers business. Now looking at FY 2022 product performance on slide 13. Mobile EBITDA was our key growth driver, illustrating the successful execution of our strategy and monetization of 5G leadership. AUD 700 million of mobile growth was achieved due to increased service revenue, the final benefits of transitioning off subsidy and lease plans, and productivity. The remaining portfolio in aggregate declined, which I'll go through in turn shortly.
Other EBITDA positives included around AUD 80 million from the impact of bond rate changes on employee liabilities and around AUD 50 million from revenue catch-ups from prior periods. Now looking at our key products, starting with mobile on slide 14. On the top left, you can see mobile service revenue, which I am pleased to say grew 6.4% in FY 2022. We are focused on growing mobile service revenue at a mid-single digit CAGR, given it is the key long-term driver of mobile profitability. Service revenue across all segments and sub-products grew, which more than offset mobile hardware revenue decline of 9%, largely due to lower volumes. SIO growth was strong. In postpaid handheld, we added 155,000 customers in FY 2022 with SIO growth in all segments and brands, including a strong contribution from Enterprise.
In addition, postpaid ARPU, shown on the bottom left chart, grew 2.9%, including the flow through of prior price changes. As described at the half, economic ARPU growth was stronger than reported ARPU growth. For the full year, there was a AUD 1.22 non-economic negative impact, which included the shift from gross revenue to net margin recognition for some add-ons. Second half postpaid ARPU grew sequentially on the first half with C&SB MMC growth and momentum from roaming, partly offset by lower out-of-bundle COVID-related messaging revenue in Enterprise and from the incremental non-economic impact outlined. In July, we increased prices in line with CPI for our in-market branded postpaid mass market plans and introduced an option to review prices annually against CPI. This results in increased prices for around 65% of postpaid mobile customers and will flow through from September.
There are different dynamics in the other 35% of postpaid customers, and we will continue to review pricing across our portfolio. With international travel back on the agenda, roaming is also expected to support FY 2023 growth. Although it's unclear if it will completely return to pre-COVID levels, in FY 2022, roaming EBITDA was approximately 20% of the around AUD 250 million pre-COVID level and for the month of June was at around 45%. Turning to infrastructure on slide 15. The charts on the left-hand side show that InfraCo Fixed revenue and EBITDAaL declined 4.4% and 1.6% respectively. Our world-class fiber, ducts, and network sites delivered 3% growth in core access revenues and flat EBITDAaL.
Legacy network disposals contributed positively, but were more than offset by a decline in NBN commercial works, which is winding down as the NBN rollout nears completion. Recurring infrastructure revenue from NBN grew by 3.3%, shown on the top right chart. These revenues are indexed to CPI for the remaining average contracted period of 25 years. As Andy mentioned, we are close to finalizing contract negotiations for the first stages of the build and signed up Microsoft as the major anchor tenant. Our strategic conviction remains strong. Not surprisingly, in the current economic environment, we have seen cost inflation for construction and fiber supply. Our extensive discussions with customers have provided a clear view of their requirements, including the highest priority routes, and we are adjusting the staging of our rollout to meet this demand.
The total number of kilometers built will depend on the final routes. We expect to remain within our strategic CapEx for FY 2023 of AUD 350 million, including Viasat, and the targeted total spend over the five-year project of AUD 1.4 billion-AUD 1.6 billion. Given the cost inflation and the customer demand profile, the estimated FY 2026 EBITDA will be significantly lower than previously indicated. However, customer preference for IRU contracts will support cash flow with higher upfront cash contributions. The IRR on the rollout of the first stage is expected to be equal or better than mid-teens. On the broader InfraCo Fixed strategy, we have made significant progress. We will continue to focus on improving the access, utilization, and scale of our infrastructure to deliver growth and value. Also, on completing the restructure, providing us further optionality.
As we've already demonstrated, where we see the opportunity to realize value through monetization, we will. Although, we have made no decisions yet in this regard. These are unique and valuable assets, and we will be measured and deliberate as we consider options over the course of 2023. Turning to Fixed Enterprise on slide 16, which in FY 2022 returned to growth. NAS growth offset the decline in data and connectivity or DAC, driving 2.3% EBITDA growth, as shown in the top right chart. DAC revenue declined 13.3%, as shown in the bottom left chart. This was largely due to ARPU compression and technology change. We achieved strong contract renewals of our government and enterprise customers, with T-Fibre churn largely confined to mid-market and business segments. The DAC outlook remains challenged with competitive pressures, especially NBN's release of more fiber business zones.
In addition, customers are using SD-WAN and internet as an alternative to private dedicated connectivity, especially for smaller locations. Returning DAC to growth remains our ambition, and we are confident in our ability to win in market, leveraging our extensive fiber footprint, complemented by reselling NBN. However, we have seen more disruption than we anticipated, and achieving growth will rely on a broad stabilization of ARPU. We no longer expect this to occur in FY 2024, although we do expect the overall domestic enterprise business, which grew in FY 2022, to continue growing. In NAS, FY 2022 EBITDA grew 93.8%, as shown on the bottom right chart. NAS revenue grew in all categories except legacy calling. This included growth from security, cloud, IoT, professional, and managed services. Second half EBITDA was also supported by revenue recognition linked to milestones on key contracts and strong cost management.
The NAS EBITDA margin of 11.5% in FY 2022 is on the right trajectory to meet our mid-teens ambition by FY 2025. Turning to Fixed C&SB, where EBITDA has bottomed and returned to growth sequentially in the second half. Growth was achieved through cost reduction and ARPU uplift from price rises and improved plan mix, shown in the charts on the bottom right of this slide. The NBN reseller margin for FY22 was 5%, including a two percentage point improvement from the first half to the second half. We continue to target greater than 8% in FY 2023 and mid-teens in FY 2025, with further benefits expected from price rises, mix, and cost out.
The new digital stack is also driving a step change in customer experience. We are pleased to see year-on-year improvements in episode NPS of +24 points for sales and activation, and +12 points for assurance, including from proactive fixes and agent tools to better support our customers. The NBN market remains challenging, including competition from emerging business models. We lost 87,000 net bundle and data SIMs in FY 2022. Although focused on profit, a key challenge remains stabilizing SIMs to achieve longer term sustainable growth. Our fixed NBN outlook is also supported by growing 5G home wireless. Its contribution was small in FY 2022 due to modem supply constraints, but we expect more scale in FY 2023. Finally, international on slide 18. Our existing international business grew 15.2% in FY 2022 in Australian dollars, supported by FX.
We are excited to have the Digicel Pacific team on board following the completion of the acquisition on thirteenth July. We see considerable opportunities for growth, and the business is tracking well. Pro forma March FY 2022 EBITDA was $238 million, and the transaction will add in the order of $160 million per annum of EBITDA. The transaction modestly increases our pro forma leverage by approximately 0.1x. As we own all of the ordinary equity, we will account for Digicel Pacific as a wholly owned entity, and there will be no minorities in the P&L. The government equity-like securities will be reflected as minority interests on the balance sheet. Turning to our operating expenses, which you can see on slide 19, which again tell a good story.
In FY 2022, total operating costs declined 5.8%. Excluding one-offs and other guidance adjustments, underlying costs declined 5.7% or by AUD 863 million. Breaking down underlying costs. In sales costs, an increase in NBN payments was more than offset by a decline in other sales costs, including lower hardware. Underlying fixed costs reduced AUD 454 million. We achieved our T 2022 cost out target for a cumulative AUD 2.7 billion per annum or 35% absolute reduction in annual underlying fixed costs since FY 2016. Key contributors to this productivity are shown on the slide. Given the current environment, I will cover the implications of inflation on our costs, including mitigants we have put in place. Firstly, looking at OpEx and our AUD 14.3 billion of underlying costs.
Our sales costs include some inflationary pressure, especially in the other category. However, these costs are largely passed through. Within fixed costs, the biggest bucket is labor. Here we have some protection from our newly reached enterprise agreements with agreed wage increases for the next two years. On energy, we expect our absolute costs to increase by around AUD 50 million in FY 2023. However, we expect our energy PPAs to mostly offset this at EBITDA. Service contracts and agreements and other are areas where we expect costs to be under inflationary pressure. Contracts do offer some protection, while there may be opportunities to manage spend in these categories also. For FY 2023, in addition to inflation, our costs will include absorbing a full year impact of insourcing our retail channel and onshoring call centers. Outside of OpEx, importantly, we have revenue levers.
As I mentioned earlier, we have increased prices reflecting CPI in mass market branded mobile and our NBN recurring revenue of around AUD 1 billion are indexed to CPI. We're also looking at what increasing costs mean for other pricing. On property leases, we continue to optimize and have some protection. On interest costs, hedges are in place with around 65% of our debt at fixed rates, inclusive of Digicel Pacific. On CapEx, around 75% of our spend is subject to inflationary pressure, with the remainder having some protections, including contracts and capitalized internal labor. We are committed to managing CapEx to guidance. As you can see, overall, we have some mitigants against inflation, given the steps we have taken. We will continue to remain disciplined and focused in our management of costs and pricing.
We expect modest cost out in FY 2023 despite inflation and the full year impacts I mentioned. Our ambition remains AUD 500 million cost out under T25. Turning to free cash flow on slide 21. Free cash flow after lease payments increased 5.9% to almost AUD 4 billion, largely due to working capital improvement of AUD 923 million being ahead of what was achieved last year. The working capital benefit was largely due to reduced receivables, including from lower handset sales, strong collections, and lower bad debts. Turning to our capital position on slide 22. We reduced net debt by around AUD 2.6 billion in FY 2022, supported by our free cash flow and proceeds from the partial sale of our towers business. We remain within our comfort ranges for all credit metrics, with debt servicing at 1.8 times.
Underlying ROIC improved by 2 percentage points to 7%, supported by earnings growth and our tax rate below the statutory rate. Turning now to FY 2023 guidance. The ranges and basis on which guidance is provided can be seen on slide 23. Guidance includes Digicel Pacific across all measures. Our underlying EBITDA guidance is consistent with our previous FY 2023 ambition, plus a contribution from Digicel Pacific. We expect FY 2023 restructuring costs to be less than AUD 100 million and mostly in first half 2023. Restructuring costs are excluded from underlying EBITDA and include one-off costs associated with the legal corporate restructure and Digicel Pacific transaction costs. Our CapEx guidance includes an uplift in mobile investment around AUD 150 million for Digicel Pacific and around AUD 350 million of strategic investment outside of BAU for the intercity fiber and Viasat infrastructure projects.
CapEx guidance is modestly below adjusted D&A. Finally, on guidance, we expect to continue to achieve strong cash flow, enabling us to invest for growth and deliver returns to shareholders. FY 2023 free cash flow is expected to be around AUD 1.1 billion, lower at the midpoint of guidance than FY 2022. Increased EBITDA in FY 2023 contributes positively, but this is more than offset by increased CapEx as well as working capital and other benefits in FY 2022 not repeating. Finally, I would like to take the opportunity to recognize that this is Andy's last results presentation at Telstra and my final as CFO. I'm looking forward to stepping into the CEO role on 1 September, and I am grateful to be taking over with Telstra in a strong position.
Thanks to Andy's leadership and the foundations he has laid as a result of our successful T22 strategy. I'm excited to be leading a highly capable team to deliver our new strategy, T25, which is set out on slide 24. In due course, I look forward to engaging with you on T25 and reporting on our progress, just as transparently as we did on T22. To summarize, our results clearly demonstrate financial momentum, and we expect growth in our underlying business will continue. We remain disciplined and focused on creating value. We are well-placed in the current environment with earnings growth, strong cash generation, and a strong balance sheet. We have the right strategy and the clearest signals of success will be growing our business, improving our customer experience in NPS, enhancing our reputation, and retaining and attracting the best talent.
If we get these things right, we are absolutely confident our financial ambitions will follow. Finally, like Andy, I would like to thank and recognize our dedicated teams right across Telstra, an incredibly talented team that I look forward to leading. I'm also looking forward to having Michael Ackland move into his new role as CFO, and I know Michael looks forward to engaging with all of you more closely. I will now hand over to Nathan to take us through Q&A.
Thank you, Vicki and Andy. We'll enter a time of Q&A. On the call is Andy Penn, Vicki Brady, Michael Ackland, GE of Consumer and Small Business and incoming CFO, as Vicki mentioned, as well as David Burns, Group Executive for Telstra Enterprise, as well as Brendon Riley, CEO of InfraCo. If you are on the line, just a reminder to press star one if you wish to register a question. Our first question comes from Eric Choi from Barrenjoey. Go ahead, Eric.
Morning, team. I just wanted to say thanks very much, Andy, for your efforts these past 10 years as well. There's definitely been ups and downs, but congratulations on the strong position you're leaving Telstra into. Thank you very much. Onto the questions. I just had three, and I might ask them one by one. Just the first one on the dividend. I guess you wouldn't have lifted to AUD 0.165 fully franked this year if you didn't think it could be sustained into 2023. Can I just clarify that at the bottom end of your 7.8-8.0 EBITDA range, we still think we can get close to a AUD 0.165 EPS?
Eric, it's Andy. Do you wanna give us all three and then, we'll respond if that's okay? I think we'll be quicker.
Absolutely. Sorry about that. Second one is free cash flow. Can I just clarify, maybe higher mobile handset sales may be driving some of this revenue beat and free cash flow miss versus the market. And if that's so, it still looks like you're guiding to neutral working capital. What are the positives that are offsetting the drags from your handset sales at free cash flow? That's the second. Then on the third, just on InfraCo. Just going through the regulatory disclosures, the ACCC says they've seen some redacted statements which show the separation's gonna deliver significant value, and then Mallesons is saying there's certainty of value creation.
I'm just wondering, in 2023, will Telstra be the one that's driving these potential, value creation events or will you leave this up to sort of third parties coming in and potentially, you know, doing due diligence or looking at the assets? Thank you.
Hey, look, Eric Choi, thank you very much for those questions. I think you'll find, given this, I mean, my last few weeks, I'll be directing most of the questions to Vicki and others. Firstly, thank you so much for your kind comments. That's much appreciated. I'll just make a couple of minor comments on dividend from my perspective and then InfraCo from my perspective, and then I will hand over to Vicki to add hers and also pick up the free cash flow one.
Look, I mean, on the dividend, I'll let Vicki to talk specifically about ranges, but I mean, the decision to increase the dividend was very much reflective of the board, I guess, sending a message of its confidence following the completion of T22, the strong result in the current year, the aspirations in T25 to grow EPS. The fact we've got a strong balance sheet and the fact that it's an important value measure for shareholders, particularly many of our retail shareholders. You know, ultimately, we obviously, the board turns its mind to our capital management framework. I'm very comfortable that we could do that within the context of that.
On InfraCo, as I mentioned, we will be sending out subject to court approval, the explanatory memorandum scheme booklet very shortly for the EGM which will be held in October. At this stage, as Vicki said, we haven't made any decisions on monetization or a process of monetization. With those comments, I might hand over to Vicki.
Yeah. Thanks, Andy. Yeah, thanks, Eric, for those questions. The first one on the dividend. As Andy spoke to, you heard the reasons why the board made the decision to increase the dividend for the final dividend by half a cent. Look, in terms of our underlying EBITDA range, you can see we have tightened that range again. We continue to get feedback that, keeping that range tight makes a lot of sense. AUD 7.8 billion-AUD 8 billion. We don't give, obviously, guidance on dividend, but I think if you take our underlying EBITDA range, you've got a pretty good view of what D&A is going to do with Digicel coming in. You can also, I think, probably work out where finance costs are headed.
As I said, we don't guide on the dividend itself, but we've got strong confidence in our EPS growth, and that's built into our T25 ambitions. The second one on free cash flow. Yes, on free cash flow for FY 2023, we are assuming quite an uplift in our handset sales in mobile. FY 2023 is a year where we will see customers coming off deferred handset plans for both two-year and three-year periods. We have an uplift in customers that will be looking, we expect, for new devices in FY 2023. Yes, from a working capital point of view, we expect to use some working capital to support that.
Helping to offset that, however, is we are expecting receivables to improve in FY 2023 further, and that comes as more of our customers move on to our new upfront plans. Yes, you're right. In terms of free cash flow in FY 2023, the increase in EBITDA gets taken up by the increased CapEx investing in the strategic elements under our Intercity Fiber and Viasat deal and a little bit more into mobile and Digicel. But we will see, we expect working capital, yes, to be broadly neutral, and obviously, handset sales are one of those things we will watch closely, but we are expecting an uplift in handset sales in the year. I think they were the couple of questions to cover off. Back to Nathan.
Did you wanna make any further comments on InfraCo?
In terms of InfraCo, as I said, as I spoke today, you know, we are very focused on firstly finishing the restructure, and Andy addressed that with the timeline on that. Brendon and the team are also very focused on ensuring we're running the InfraCo business to make sure we're creating the most value and delivering the best possible outcomes out of that business. They are incredibly valuable assets, and we appreciate that. As I said, through the course of 2023, we will review that optionality, but we don't have anything more to say on that at the moment.
Okay. Thank you, Eric. Our next question is from Kane Hannan from Goldman Sachs.
Morning, guys. I'll send you off with three more questions, Andy. Maybe just the 2023 guidance. Just interested if you can comment on, you know, what the legacy network disposals are in that. Do you have any NBN one-offs coming through next year? I thought it was about AUD 100 million sort of left in the bank. Secondly, just on the mobile side of things, are there any comments you can make around the MNC trends you're seeing in the market at the moment? You know, I suppose, really what level of spin down you're seeing under those recent plan changes. Finally, just it was obviously a very strong net adds outcome. Is there anything lumpy in that?
you know, do you think you're gonna build off that into FY 2023 and, you know, maybe offset the data and IP declines again? Cheers.
Thanks, Kane. I think I can happily pass all of those to Vicki, and I'm sure she'll bring Michael and maybe David in as well.
Excellent. Thanks, Andy. Thanks, Kane, for those three questions. Let me take the first one and I'll get Michael to comment on mobile and David to comment on NAS. Firstly, in terms of FY 2023 guidance, yes, you picked up in FY 2022, as we have included in our materials. There are some legacy network disposals included inside InfraCo Fixed, and they are not one-off in nature. They will continue into FY 2023. As an example of that, as we recover copper out of our network, we are able to realize value on the disposal of copper. We see that as a continuing program over the next few years. We also, as Brendon and the team operate, InfraCo Fixed, they're looking at our fixed network sites and they find opportunities.
Where we have the opportunity, we will realize value from some of our fixed network sites. We saw that again in FY 2022, and we would expect to continue that program of work and opportunities to appear through FY 2023. In terms of the NBN one-offs, as we spoke to today, this FY 2022 is the final year of our large NBN one-offs. In terms of what we expect in FY 2023, we expect a very small amount to come. I would expect that more to be in the low tens of AUD millions. So that's my expectation on NBN one-offs. Then why don't I hand to Michael to comment on mobile and the trends he's seeing, and then he can hand across to David to talk a little bit more about NAS.
Great. Thanks, Vicki, and thanks, Kane. I think what we're seeing is we obviously forecast for some spin down in churn, and we're seeing that it's well within our expectations. We haven't seen any significant mix change coming through on activations. But I think the trends are pretty positive, but we'll obviously watch that closely as we go through the rest of this year. Over to you, David.
Hey, thanks, Michael. Thanks, Kane, for your interest in NAS. I think it's a mix of overall strong performance across the board. You can see that there's some strong cost management and cost takeout in the NAS portfolio. As Vicki showed in the Fixed Enterprise chart, you can see that all the lines of business, with the exception of calling apps, which is what we would expect, all grew pretty much in double digits, but in line with the market, and we're pretty excited about that, and we think that's a very strong performance.
Yes, the NAS business does have the occasional lump in it, and we had a couple of transactions and milestones that were key in the second half, so a very strong second half when you put all of those pieces together in the NAS performance. I'd just reiterate what Vicki said, that and guidance we've also given on the NAS portfolio that we expect to see continuing single digit, mid-single digit growth in the NAS business and retain our mid-teen EBITDA margin outcomes for the future. We'll stay with those. As Vicki included in today's announcements, we'll continue to grow top line and bottom line in the domestic enterprise business overall.
Yes, NAS will be a key contributor to that as we do expect continued challenges in that DAC portfolio. NAS will be a key contributor to that, yes.
Great. Thank you. Our next question is from Entcho Raykovski from Credit Suisse. Go ahead, Entcho.
Morning, all. My first question is on the T25 EBITDA ambitions. Obviously you retain that for mid-single digit CAGR. I guess I'm just interested, for the avoidance of doubt, do they still exclude all acquisitions or is Digicel now factored in? I guess where I'm getting to with that question is I'm conscious that there's lower expected EBITDA from the fiber build, the DAC growth being pushed out. Can you talk to some of the offsets which would allow you to reach that ambition? That's question number one. Secondly, I've also got a question on divvy. Is the intention that the dividend remains fully franked in FY 2023 and beyond?
I mean, I'm conscious that you have a fairly low franking balance, and you've got some earnings coming through from Digicel, which won't be franked. What are you thinking around franking? Finally, question on the fiber build. How are you thinking about the payback period now on those investments? I think it was about nine years when you spoke about it back at the start of the year. If you can give us any specific sense on the EBITDA reduction relative to your prior estimates of circa AUD 200 million, that would be quite helpful. Thank you.
Hey, thanks, Entcho. It's Andy. Look, I'll pass it on to Vicki. I think, I mean, I could make some comments, but I think it's probably best that she does.
Thanks. Thanks, Andy. Thanks, Entcho, for those questions. Just in terms of our T25 ambition, yes, that remains unchanged. Included in that is now Digicel, and the acquisitions we've made. Yes, that remains at mid-single digit EBITDA. As you spoke to and pointed out, there have been a few changes. Obviously, data and connectivity is not performing, where we had hoped it would be, so we don't see it returning to growth in FY 2024. As David just reinforced, we do believe the domestic enterprise business will continue growing. As you think about those, DAC not performing quite where we had hoped, disruption continuing there. Overall, the domestic enterprise business, we do still expect growth, and so NAS and mobile play an important part there.
Yes, just in terms of the dividend in FY 2023, again, I think our capital management framework that we updated last September when we announced T25 is very clear, and we remain absolutely committed to that. That is the goal, to maximize and seek to grow over time our fully franked dividend. I would anticipate our dividend being fully franked at this point as I look to FY 2023. Just on the Intercity Fiber project, just talking about it in a little bit more detail. As I spoke about, Brendon and the team have done an enormous amount of work, and I might get him to jump in in just a second and add his comments as well. A long way progressed on the contracts around the construction and the fiber supply.
Extensive discussions with customers, and that's really informed us around the priority routes and the staging of the rollout. In this first stage of the rollout, in fact, because we're seeing customers prefer IRU contracts where we get more cash up front, in fact, we see the payback period on this first stage actually being better than what we talked about as the overall project back when we announced it. This is for the first stage of it, where we are focused on the priority routes that are most important and where the biggest demand is from our customers. We see good return on that. In terms of, I did mention we are estimating that the FY 2026 EBITDA will be significantly below what we anticipated when we announced the project to the market.
In terms of there's still a lot working through in build timeframes and getting that locked down and customer demand profiles. When I say significantly lower, it is hard to estimate at this stage, but it would be well below the AUD 200 million we had anticipated when we announced the deal. As we firm up the rollout and at our next results presentation, we'll update on how it's progressing. Brendon, I might hand to you just to give your insights into the Intercity Fiber project.
Yeah, thanks very much, Vicki, and thanks, Entcho. Look, Vicki, I think you summarized it really well. You know, Entcho, since the last update we gave, we've done a massive amount of work on the design, and that feeds into the cost side, and that's the dark fiber solution design that's particularly been requested by the hyperscalers and some of the other major providers. So there's additional requirements that go into the cost there. We've completed the tendering work. They're higher. We've factored in inflation, so the costs are a little higher. Just in terms of how we're staging the build-out and the routes and the prioritization of those, you know, we're gonna focus on the routes that our customers want that obviously generate the returns. That has the implications for FY 2026 EBITDA.
It's still gonna be a fantastic project. The IRRs, you know, the payback, as Vicki has indicated, will be a little shorter with some of the cash contributions that we'll get. I think the other thing that I would say is we're gonna be really disciplined with our capital management. We have indicated there is a lot of capital to go into the project, so we want to make sure we're very disciplined in the early years and generate the returns. I'll pass back to you, Nathan.
Thank you, Brendon. Our next question is from Darren Leung from Macquarie. Go ahead, Darren.
Guys, thanks for the opportunity. I just had three questions as well, and I'll ask them all in one. So the first one, just wanted to have another go at the dividend. Does the dividend policy of 70%-90% of underlying earnings still stand? And any framework we should be thinking about, particularly relative to free cash flow, please, just given the spread here. And then the second one was just on the FY 2023 EBITDA guidance. So obviously a good outcome compared to the analysts. It looks like the bulk of this is obviously driven by Digicel, and you've had a pretty good cost out outcome, in terms of the AUD 400 million cost out.
I'm just curious as to why this couldn't have been higher, or is it more just conservatism around some of the inflation piece there, please? The third one was just on CapEx. There was previously the AUD 3 billion of BAU CapEx comment, and there's obviously the inflation piece here as well. If inflation moderates, does this comment still stand, or does it actually start to come off a bit, please?
Thanks, Darren. Just on the middle question, 'cause you were cutting out a little bit. I think it was basically, can we sort of comment on what's underlying the, I guess, the progression from FY 2022 to FY 2023. Is that what was your question?
Yes, please.
Yeah. Cool. On dividend policy, well, the dividend policy has been updated, but I'll pass that over to Vicki with the other questions.
Thanks, Andy, and thanks, Darren, for those questions. First, on dividend, yes, we did update our capital management framework back in September last year as part of the T25 announcements. Seventy to ninety percent payout ratios were removed. We went to a policy around seeking to maximize and grow over time our fully franked dividend. That's not part of the policy. As you can see for the dividend that the board decided on in terms of our final dividend for this year, you can see that our earnings payout ratio is above 100%. It is well supported by free cash flow. We have the franking credits to support the fully franked dividend.
Those prior ratios are no longer part of the capital management framework. In terms of FY 2023 and Digicel and our guidance range. I would start with in terms of Digicel, we would see that adding a little over AUD 300 million to our underlying EBITDA. I spoke to the pro forma EBITDA in US dollars for FY 2022. As we take over Digicel, obviously we're reviewing the business and we're looking at some of those opportunities where we might invest a little bit more in CapEx and OpEx to support the growth in that business. I would expect Digicel to contribute a little over AUD 300 million.
When I factor that in, you can see still very strong underlying growth baked into the guidance range for the underlying business, excluding Digicel. I should just comment, I know in an earlier question from Entcho, we did set our T25 mid-single digit EBITDA ambition for growth there without Digicel. We're not updating that ambition, but obviously, Digicel is a new addition into our business. On CapEx, a couple of things to comment on then. Yes, our capital management framework talks about BAU CapEx of around AUD 3 billion, I should say. As Digicel comes in to be part of our business, we do see some elevated CapEx compared to where we would see it running at sort of over the medium to long term.
That's as we support the build-out of the network and we see that sitting, as I spoke about for this year, at about AUD 150 million, and that's likely to be in that order for a few years. We have Digicel coming in. We also have, as I mentioned, a little bit of an increase in mobile CapEx this year. Again, that's just supporting the rollout of our 5G network and ensuring we've got, you know, the right capacity and quality in our mobile network. The big difference is obviously Digicel coming in, and that will become part of our BAU CapEx.
Thank you, Darren. Our next question is from Fraser McLeish from MST Marquee. Go ahead, Fraser.
Thanks. Actually, I think you just answered all my questions in that last comment, Vicki. I'll just leave it with saying, you know, congrats, Andy, on that final result. You know, it's been a pleasure dealing with you over quite a number of years now. Good luck with your future endeavors, Andy.
Well, thanks so much, Fraser. That's, Firstly, I'm glad that we've actually addressed your question, so, but look, thank you so much. It's been a pleasure to work with you first. You've always been, incredibly balanced and fair and challenged us appropriately, which, I appreciate. Hope our paths cross again in the future.
Yes, good call on the dividend, Fraser. Our next question is from Lucy Huang from UBS.
Thanks, Nathan, and congrats, Andy, as well on the retirement. I just might add in kind of three more questions. Just firstly, in relation to CapEx. I noticed that you mentioned that 75% of CapEx is exposed to inflationary pressures. Just wondering in this environment whether you think beyond FY 2023, it's possible to keep to the underlying guidance of about AUD 3 billion? If not, you know, which projects could we see some potential CapEx being pulled back on to manage that? Just secondly, in terms of the guidance, just wondering what you're factoring in for a return in mobile roaming revenues. I noticed you guys mentioned that in June we're sitting at about 45%. How much more are we factoring into FY 2023?
Just lastly, on InfraCo Fixed build, also the intercity fiber, I'm just wondering if you can comment on the competitive dynamics in the market currently. If we're a bit more moderate on the build spend, is there a risk that competitors can actually accelerate the build of their own fiber? Would that impact kind of the returns that we're expecting there? Thanks.
Thanks, Lucy. Vicki?
Thanks, Andy. You're enjoying this a lot.
I'm enjoying this very much.
Yeah. Okay.
You're doing a great job.
Lucy, thanks so much for those questions. Let me take the CapEx question. I'll then hand over to Michael to talk more about how we're thinking about mobile roaming in FY 2023, and I'll get Brendon to talk about the Intercity fiber and the competitive dynamics. Firstly, on CapEx, yes, as I spoke to, about 75% of our CapEx spend we see as facing inflationary pressure. As I said, we would absolutely in FY 2023 manage to our guidance range. You know, as I look to 2024 and beyond, obviously there's a lot going on in the macroeconomic environment and, a lot of uncertainty around what inflation will do.
That'll be something, Lucy, that we'll have to, as this year progresses and as we get closer into our planning process and in setting guidance for FY 2024, you know, I will come back and talk about. Absolutely reassuring you, in FY 2023, there will be inflationary pressures, we expect, but we will manage inside our guidance range. We have a very clear view of our priorities and, some of the things where we would, you know, trade off if we needed to in terms of CapEx and obviously the mobile network and its build-out, the enterprise fiber build-out and the Viasat build-out. They're all very clearly defined. Yes, in any CapEx plan, there'll always be things where we would make trade-offs. I'm very much committed to delivering CapEx inside the guidance range that we've spoken about today.
Michael, I'll hand over to you on mobile roaming.
Thanks, Vicki, and thanks, Lucy. I mean, I think, as Vicki said in her speech, we saw mobile roaming at around 20% of pre-COVID levels in FY 2022, and that was very much back-ended with June at, I think, 45%. We expect that to continue to lift in both the first half and second half of 2023. If you look, it's always hard to predict what's gonna happen, but if we look at the forecast for lift capacity, airline lift capacity out of Australia, I think the prediction is around 50% in the first half of next year of pre-COVID levels and around 65% in the second half. We're pretty aligned to that as well.
That would place it at around, you know, around that sort of AUD 1 mark, additional AUD 1 mark for ARPU throughout 2023, which was similar to what we saw on a PCP basis in second half of 2022. Thanks.
Did Brendon wanna make any more comments about the fiber competitive environment? Brendon?
Yeah, thanks, Nathan, and thanks for the question, Lucy. Yeah, it's an active market. I think we've seen over the last year, not just our announcement, but other announcements of fiber builds, more, you know, undersea cable capacity being built in and out of Australia. It's definitely a very, very active market, Lucy. There's been a huge amount of interest in our project since we announced it, and that's from hyperscalers, global companies, local telcos, government, commercial organizations. I mean, everywhere I go around the country, there's just a massive interest in what we need to do. That's because we need to build more demand, and we obviously need to do more in relation to regional Australia.
I don't think there are too many companies that could take on this project at this scale, and the fact that we've already announced we're doing it, we've committed the CapEx. We'll commence construction next month. We've done our construction tests in Western Australia and New South Wales. We commence construction next month. We're off and away. We will build a very significant and material amount of the project in the next three years, and we've already landed our first anchor tenant. We're off and away. It's gonna happen. I'm very excited about it. Huge interest. Yes, it's a competitive market.
Thank you, Brendon. Thank you, Lucy. Our next question is from Roger Samuel from Jefferies.
Well, hi, good morning, all. I've got three questions as well, hopefully quick ones. Firstly, just on the T25 ambition of hitting over the CAGR for EBITDA. If the Telstra and TPG regional network sharing deal is not approved, is it gonna reduce the ambition? The second question, I just wanna clarify on your previous FY 2023 ambition. Did you include the contribution from Digicel when you made that comment before? Because when you made the aspiration around this time last year, you mentioned about AUD 7.5 billion-AUD 8.5 billion. Then in February, that was reduced to AUD 7.5 billion-AUD 8 billion. Yeah, I just wanna clarify that. Thirdly, just on the spectrum spending.
You mentioned you're gonna commit to AUD 660 million on the low-band spectrum. Can you tell us what the timing of that spending? Thanks.
Hey, Roger. It's Andy. Just a couple of quick comments from me, and then I'll pass to Vicki. Of course, we announced the TPG Telecom MOCN deal, I think in late February of this year, while we announced the T25 strategy last September. I think that answers your question in terms of, no, it wasn't included in those initial aspirations. The corollary of that is that it doesn't. If it didn't get approved, which I can't imagine why it wouldn't get approved, but if it didn't get approved, that wouldn't impact that outlook. I'll just give you a little bit of history on the AUD 7.5 billion-AUD 8.5 billion, and then I'll hand over to Vicki, and she can sort of talk more about things going forward.
The AUD 7.5 billion-AUD 8.5 billion, I can't remember when we first announced that, Nathan. It was probably three or four years ago, and it wasn't announced at that time as an aspiration. It was announced actually as a range which was intended to be helpful to say that at that time, we estimated that we needed our underlying EBITDA to be in that range to support effectively underlying EBITDA that would support a dividend around AUD 0.16 in accordance with the capital management policy at that time. The reason the range was so high, by the way, was because, you know, we were trying to forecast CapEx, D&A. Sorry, finance costs, etc., at that time as well. So that created quite a big range.
We did bring that in to AUD 7.5 billion-AUD 8 billion more as part of our overall ambitions for T25. That obviously didn't include Digicel because we announced that, I think, in October of last year. Look, that's a bit of history for me, but I should hand over to Vicki because obviously she's leading this going forward, and I don't want her to set the expectations appropriately.
Thanks, Andy, and thanks Roger, for that. Andy is spot on. Just on Digicel, 'cause I know I'm sure there's plenty of people working out where the guidance range sits. As Andy said, when we talked about the ambition of AUD 7.5 billion-AUD 8 billion, it was not including Digicel. As I spoke to earlier, we think about Digicel contributing maybe just a little over AUD 300 million. When I look at our guidance range of AUD 7.8 billion-AUD 8 billion for FY 2023, I absolutely see excluding Digicel that we're inside the ambition that we had spoken about for the business excluding Digicel. Then, Roger, you had a final question on spectrum, and this is our payment for the 850 MHz spectrum that we secured at auction.
In terms of the timing of that payment, it's been set that we would pay for that spectrum shortly before we get access to it. We're due to get access to it in July 2024, so we would expect payment to be shortly before that, so somewhere mid-calendar 2024.
Okay, great. That's very clear Thank you.
Thank you, Roger. Our next question is from Harry Saunders, from Evans and Partners. Go ahead, Harry.
Morning. Thanks for taking my questions, and congrats on the retirement, Andy. I had three questions as well. Firstly, can you give an update on the interest rate sensitivity provided in the accounts, which is a AUD 20 million NPAT impact from a 100 basis point move? What does that look like after the Digicel acquisition? Secondly, can you give any further color on fixed wireless, you know, subscriber numbers and perhaps where the opportunity is there? And just finally, any expectations for the mobile division margin?
Thanks very much, Harry, and thanks for your kind wishes. Vicki.
Thank you. Thanks, Andy, and thanks Harry for those questions. I might, I'll take the interest rate one in just a second, but I will get Michael to talk a little bit about fixed wireless and how we see the opportunity there. Then I can talk a little bit about mobile margins as we look forward. Firstly, just in terms of interest rates, it's in terms of that, we provide that view in the accounts, obviously, and you can see that there, that it says, we estimate the interest rate exposure if there was a 100 basis point move up against the parts of our debt portfolio. As I said, 65% of our portfolio is fixed.
In terms of rates, that has an impact of about AUD 30 million on NPAT, so relatively small. In terms of what it looks like post-Digicel, it would increase a little bit, but definitely we don't see that as material. Hopefully that helps give you a little bit of more color on that. In terms of mobile margins, obviously, mobile margins are sitting for FY 2022 at a very strong level. The one thing through FY 2023 is obviously we are anticipating that hardware revenue does lift again as we see customers on both two-year and three-year deferred repayment plans coming out of contract for their handsets. That will have a little bit of an impact in terms of overall margin. Just as that revenue increases, it's obviously at a lower margin than service revenue.
I remain optimistic where we're still committed to the service revenue growth in the mid-single digits%, and obviously, that's very important and a key economic driver. Mobile margins are sitting at a reasonable level, and other than hardware, obviously, that's one of the big things that would come into that calculation as we look at FY 2023. I remain, you know, optimistic. The mobile business is in a very good place. We see growth continuing, and I see it continuing to deliver strong margins. On that basis, let me hand over to Michael to talk a little bit more about fixed wireless access.
Thanks, Vicki, and thanks, Harry. Fixed wireless. I think as we've talked about before, we had a slow start through FY 2022, largely driven by hardware constraints. We're through those hardware constraints now, and we're seeing momentum pick up. We would expect that to be a much stronger contributor for us, both in terms of subscriber growth, but also margins in the fixed C&SB product line as we go through FY 2023. We continue to see great demand. I think we've got a fantastic product and we'd see pretty strong growth for that in 2023. Thanks.
Thank you, Michael. Our next question is from Rod Sleath from Rimor. Go ahead, Rod.
All right, guys. Thanks very much for taking my questions. You can hear me there, can you? Hello?
Yes, we can hear you. Go ahead.
Oh, good. Sorry. I think just a couple of questions. Firstly, just with regard to the recent CPI type price increases in mobile, and I understand that Optus did increase some of its prices on older contracts, but not necessarily its current packages. At the same time, I guess I'm interested. I understand the mobile business is very, very strong at the moment, and you've got a very strong lead in 5G. Overall, for similar type packages, are you seeing that historic premium that you have had, is that historic premium price increasing, do you believe?
I guess where that leads on to is if we are in an environment where we have a more tortured consumer, if you do see a consumer response that sees a shift towards more budget packages, how quickly would you or could you react to that? That's the first question. The second question is really on a similar train of thought, but it's with regard to your fixed business, particularly the NBN, with the loss of 87,000 subscribers this year, 74,000 the previous year. You're accepting a lower market share, obviously, in NBN, given the current pricing. Does there come a point where you just say you can't accept that loss of share? Within that, I would note that you have a good value package, but it's bundled.
Whereas if I don't want to have the phone line and I don't wanna have the 4G backup, I can get a substantially cheaper package elsewhere, and I presume that's what your subscribers are choosing to do. I guess on NBN as well, I'd be very interested in both Andy's and Vicki's views on the ministerial letter recently to the ACCC and what that means, perhaps as a change in relationship between the NBN and the resellers going forward. Just finally, too, one more. With regard to InfraCo and as those internal contracts and relationships are being established, will InfraCo pricing internally to Telstra be CPI linked?
Right. It's Andy. Thank you for those questions. Why don't I sort of comment on the NBN one 'cause I guess I got a fair bit of history on that, and then I'll hand over to Vicki to navigate us through the others. You know, I think people probably understand, but just to sort of clarify the point, the NBN operates to or in accordance with a Statement of Expectations that the government provides. It's obviously a government-owned entity, so I think in fairness to NBN and NBN's management team, they obviously have to run that business according to that Statement of Expectations.
The other dynamic is, as regards to the wholesale Special Access Undertaking, the way that works at a practical level is that NBN provide that Special Access Undertaking in draft to the ACCC, which determines effectively the pricing structure and the service structure between NBN and the retail operators. The ACCC can either accept it or reject it. They can't change it or finesse it unless they decided separately to effectively do a special declaration in relation to the NBN service, which they so far have not done. What you have been seeing over the last period of time is NBN submitting a Special Access Undertaking to the ACCC regarding updating pricing and service structures and the ACCC rejecting it. That's been done in.
Obviously, at the same time, we've gone through a change of government, and you've seen the new government take a different approach with the NBN and effectively guide the NBN towards perhaps a different sort of set of expectations. What that means is we've seen NBN withdraw their Special Access Undertaking, and we would hope and expect to see a proposed wholesale set of arrangements which will provide for a more effective pricing structure, and a more effective service standard structure, which I'll comment on. I think, you know.
I mean, obviously from our point of view, we think that's the right path because I've, for a long time, been making the point, that ultimately government policy in relation to the NBN should be set in the context of, an aspiration for Australia to have a world-leading digital economy. If you're gonna have world-leading digital economy, you need world-leading digital infrastructure, which is telecommunications, not just purely focused on the NBN. I think what we're seeing is that the Labor Government and, Michelle Rowland very much see NBN as part of that digital economy, telecommunications ecosystem and therefore, you know, have an interest in making sure the whole of that system is working viably. You know, from our point of view, we've always had three fundamental, points of advocacy in relation to these issues.
Firstly, the level of pricing, wholesale prices, has been historically too high and will get much higher if there isn't a change, particularly to the CVC charges. It's the level of pricing. Secondly, the structure of pricing, so that goes to the CVC charge as well. 'Cause currently, basically, the retail providers sell fixed broadband on unlimited data, and so therefore, there's a mismatch between the pricing between the wholesaler and the retailer, and the retailer to the end customer, which is never a good situation. Finally, as a retailer, we have all sorts of different obligations of services to the end customer, which are not backed up with the level of service obligation between NBN and us as a retail service provider.
You know, we are, you know, pleased and therefore optimistic that we'll see a revised Special Access Undertaking over the coming months, agreed with the ACCC, which will address all those three things, which I think will be good for customers and will be good for the industry overall. With those comments made, Vicki, I might hand over to you for the rest.
Thank you. Thanks, Andy, and thanks, Rod, for your questions. I'll make some comments on the first one around CPI increases and what we're seeing in terms of mobile, and I'm sure Michael will wanna jump in and add his perspective as well. Talk a little bit about our NBN business and on the InfraCo and intercompany agreements, I'll get Brendon to jump in as well. Rod, just in terms of mobile market, what we're seeing, price increases, et cetera. I think first and foremost, we've had a very clear and consistent strategy around mobile and our pricing approach. Obviously, our multi-brand strategy does play a very important part for us and we're very aware that consumers are facing increased pressure on them through CPI. We do have that choice of brands, and so obviously Telstra does sit.
Our Telstra brand sits at the premium end of the market. We have our Belong brand, we have JB Hi-Fi as a partner, and we have our wholesale business. There is a choice of brands for customers. What I would say, yes, it's a dynamic market. We've been very clear and consistent on our pricing approach. More recently, that did include, obviously, the changes to bring in an annual review and an increase, which will come into effect in September for most of our customers, with around 5% increase. We do sit at a premium. That is deliberate. We have the best network, we provide the best experience to our customers, and, you know, we continue to grow our net SIOs in our post-paid handheld business. We're definitely providing those choices through our multi-brand strategy.
We're very aware of pressures that consumers are feeling, and I would say, you know, we're watching that, but at the moment we're really seeing consumers have those choices through our multi-brand approach. Michael, I'm sure, will wanna comment a little further. Something we're watching, but right at the moment, we're seeing, you know, our premium sitting at the level because of the high quality network and service experience we provide to our customers, and obviously connectivity has never been more important post the COVID period. It just reinforced that again. In terms of our NBN business, yes, we're very focused. Again, we do have a premium proposition in market with our smart modem, and the quality of service and experience we provide to our customers.
Again, we do use a multi-brand approach in how we compete in the fixed broadband market as well, and I'm sure Michael will wanna comment on where he's at and what he's thinking about and what he's seeing in that market. As I spoke to, we are focused on value in that market, but we know for sustainable growth over the long run, we obviously need to get the SIO declines that we've seen back in line with a more sustainable position. I think we've got a strong proposition in market. As you point out, we do bundle some things into our proposition relative to others in market.
Hey, hi. Hi. Hi, guys. How you going?
Good, thanks, Lucas. Great to hear from you.
It's just two from me. The first one just on the NBN, because there's been a lot of talk from the RSPs about NBN resetting the, sort of like, whole pricing structure very radically, but the sense I got from them when I talked to them earlier in this week was that whatever they submit isn't gonna be really some sort of radical overhaul. I guess, I mean, well, what specifically are you expecting to come out of them, and how do you expect to manage that over the coming years if we still see something like CPI-linked price rises coming through?
The second one, Vicki, when you were talking about inflation, I mean in the infrastructure segment earlier, you said cost inflation and customer demand, due to the cost inflation and customer demand profile, earnings will be significantly lower from FY 2026 onwards. I'm just wondering, can you elaborate on what you're seeing there and what changes in the customer demand profile you're seeing?
Thanks very much, Lucas. I'll take the NBN one, and then Vicki can obviously address the inflation one. Just in terms of to clarify how this process works at a practical level, we have, as a retailer, all retailers enter into a Wholesale Broadband Agreement with the NBN, which incorporates effectively a Special Access Undertaking. Those instruments effectively determine the pricing structure and the servicing structure between and commitments between NBN and the RSPs, of which we are of course one. The process by which that occurs is that the NBN submits the Special Access Undertaking every time it updates it to the ACCC, and the ACCC can either accept it or reject it.
They need to get to a point where they've got an accepted one, and then that gets rolled out effectively with the RSPs. The ACCC, by the way, does have it within its powers if it can't get to a point of agreement to effectively do its own regulatory assessment and then determine the arrangements, but they have not to date exercised that particular power. Of course, the other dynamic to take into account is, of course, the NBN understandably operates under a Statement of Expectations, which is determined by the incumbent government because it's a government-owned entity.
What's been happening is effectively, we've been going through a process over the last several months where the NBN has been putting forward a new special access undertaking, which as you say, Lucas, would have been there to increase prices and a set of arrangements for which Telstra and the rest of the industry, I don't want to speak for them, but I think it's fairly clear, we're not satisfied, not happy, and didn't think that was the right outcome. In the meantime, of course, we have seen a change of government, change of minister, and the new minister has issued engagement regarding her perspective on all of this, and that's led to NBN withdrawing that special access undertaking.
We would hope from here that, we would see some material changes into, whatever the NBN might submit to the ACCC, because my instinct is if there's not, then the ACCC is just gonna reject it again. The material changes that we would, like and I guess expect to see really go to issues that I've been on the record of, you know, raising going back several years, which is really the overall level of the wholesale pricing, the structure of the wholesale pricing, including effectively the CVC, and then finally making sure there's a tighter link between the service obligations that NBN has as a wholesale provider between itself and the RSPs to mirror the obligations we have in law as an RSP to the end customer, which of course, we depend on the wholesale service for.
They're all of the changes and they're the dynamics. I'm optimistic and hopeful that we will have an expedited outcome to a much more conducive pricing and service structure for the industry, which will be better for customers and better for long-term economics of the industry and ultimately better for the digital economy. Vicki, do you wanna maybe take the inflation one?
Yeah, absolutely. Thanks, Andy, and thanks Lucas for your question. Yeah, just as I was speaking today, I was talking about our intercity fiber project. This is rolling out connectivity across the nation, connecting key capital cities. A couple of things have happened. We announced it, our intention to build this major build project back in early February this year. Post there, we've been in a tendering process and lots of commercial discussions and what's come out of that. Firstly, on the cost side, yes, we have seen inflationary pressure, particularly on the construction and fiber supply side, but that construction side probably not surprisingly, and I think we're seeing that across Australia. A lot of companies facing that pressure.
You know, rolling out a project of this size, it does require a ramp up in people to be able to do the construction. Yes, we've definitely seen inflationary pressure there. We've also been in very detailed discussions with customers, including obviously Microsoft will come on as an anchor tenant. As we've done that, we started to understand in more detail how customers see demand, the profile of that demand. Those couple of things have meant that what we had anticipated in FY 2026 in terms of the EBITDA, we do now estimate that will be significantly lower. However, we are still seeing very good demand beyond FY 2026. This is a very important project for the nation.
It is key infrastructure that helps support connecting the nation and supporting the overall digital economy. We're absolutely remain with strong conviction on it. It is more short term as we make the choices around which routes we build first and the profile of demand. We see that impact in FY 2026, but still, very good IRRs and very good long-run returns. We see strong demand for this build and this capacity to be provided. Lucas, hopefully, that gives you a little bit more color on it.
Great. Thanks, Lucas. Just before we go to the next question, a reminder if you need to register, you can press star one to register for questions. Our next question comes from Rohan Pearce from CommsDay. Hi, Rohan.
Hi, guys. I just had a quick follow-up on Michael's comments on 5G fixed wireless. I'm kind of interested. Can you kind of, I guess give me a sense of where the kind of early demand has been for that product? Has it been from like, I guess, particular types of households or, households on particular types of NBN technology, for example?
Yeah, I am. No. Thanks. Thanks, Rohan. Well, actually, we've been pretty focused in the way that we've gone after fixed wireless, and we've been focused on those areas where we think fixed wireless can deliver a better outcome for an individual customer than they're getting on a fixed service. I think that's incredibly important, which does mean that more of our demand has been in areas where you know it'll be Fibre to the Node on a long copper line into Fibre to the Node, where a fixed wireless service and a 5G service can deliver a better outcome.
That said, from a demand point of view, we've seen demand from all across the country and people with all different types of NBN technology types, as you referenced.
Great. Thanks, Rohan. Thanks, Michael. Our next question comes from Richard Chirgwin from iTnews. Hi, Richard.
Hi, quick, very short three-parter regarding the decline in consumer bundling. One, what does Telstra have a specific factor that it would attribute that to? Two, do you think it is specific to Telstra or industry-wide? And three, what do you hope to do about it? Thanks a lot.
Thanks very much, Richard. Is your question specifically in relation to just bundled services or in relation to sort of home broadband?
Yes. Well, no, the 81,000 bundle decline in bundled services.
Yeah, got it. I might pass to Vicki. Do you want to comment, Vicki?
Yeah, absolutely. Thanks, Richard, for your question. Yes, we have seen that decline in terms of our net adds or net customers for home broadband services, and there are a couple of factors there. Firstly, we are now in the final stages of the NBN migration, and that does play a part in terms of that process of migrating customers. Some of the last customers to migrate over, it can be a challenging experience. There is a little bit of that going on. There's also, I think it's fair to say in the broadband market, is a dynamic market with new players entering, and it is very competitive. We've got a very clear strategy around how we compete in our fixed broadband business.
It is absolutely, we provide a premium offer in market, so we have our smart modem included. We have a great service experience that is bundled into that. Look, yes, we have seen some SIO decline. We've seen our average revenue per user increase. One of the things we are looking at, we no longer want to have, you know, good sustainable growth and be competitive in that market. We need to address that SIO decline. Overall, you know, we're now at the very final stages of the NBN migration, and that plays an important part as we look forward. It has been a very unusual period when, basically every Australian consumer for broadband services has had to make the choice and has been unsettled through an NBN migration. We're at the final stages of that.
You know, we're focused. We're always looking at our propositions and looking to be competitive and deliver to customers what matters most. We know how important broadband is and our high-quality modem and experience we provide is something in our Telstra branded business, you know, is incredibly important.
Great. Thanks, Vicki. Just a quick reminder, star one for questions. Next question from David Swan from The Australian. Hi, Dave.
Thanks very much, Nic. Congratulations to you, Andy, on your tenure and, congratulations, Vicki, on your appointment again, obviously. If I could ask for three questions. Firstly, I just wanted to ask about the network sharing deal with TPG, been called a merger by some. If the ACCC doesn't allow this to go ahead, and it sounds like you're not expecting that, but if that's the case, is there a contingency plan? Would you sort of make revised submission or, for example, or would you just sort of go back to business as usual?
Secondly, I wanted to ask about postpaid and, given, you know, inflation and cost of living pressures, I wanted to ask about if there's been any churn since the recent price rise in July, and if you think you have the balance right when it comes to value for end customers on postpaid. Thirdly, I wanted to ask, Vicki, about starting the new role. Obviously you're inheriting the T25 plan, and that's pretty clear, but if we can expect anything to maybe change under your leadership, if anything.
Hi, David. Thanks for that. It's Andy. I might just comment quickly on the network sharing deal and then hand to Vicki to cover the postpaid churn and question and not that there is any, but the question about it rather. On your direct question for Vicki. Look, on the network sharing deal, it's not a merger, so that's obviously just mischievous stuff put out by probably the only party in the country who's not really keen on it. Anyway, it's a network sharing deal. There's lots of network sharing deals around the world. It's a common feature of telecommunications. It makes an enormous amount of sense. In fact, I mean, I sort of said, I can't.
I mean, I don't wanna speak for the ACCC. That would be presumptuous and rude of me, so I'm not. They're obviously going through their process, and I have no insight into what their conclusions are or what they will be or when they will necessarily report. The reasons I've said that I can't imagine why they wouldn't have supported it is because it's good for customers. It's a commercial network sharing deal. It's good for TPG. It's good for Telstra. It's good for regional customers. You know, in that sense, everyone's a winner out of it.
Also when the ACCC have previously reviewed the mobile industry or the mobile sector in Australia, they've actually been the ones who've sort of said, you know, "It would be great to see more proactive network, commercial network sharing." I can't see why, as I say, this is a win-win. But I understand why one particular party doesn't like it when they never really like very much that we do. With that said, in terms of the contingency plan, well, as I say, firstly, the ACCC have to go through their process and then when they make a decision, that decision is obviously subject to challenge.
Whether it's a decision that any particular party doesn't like, and I'm not saying what we may or may not do in that regard, as I say, I'm not anticipating them not approving it, but ultimately, we'd need to factor that through. I mean, in the end, if for whatever reason it didn't go ahead, we will continue to do what we've always done, which is to be a big investor in regional and rural Australia, the big supporter of the Mobile Black Spot Program, the big supporter in investing in regional Australia. Which by the way, everybody has the opportunity to do so. It's just that others have chosen not to do so to the same degree that we have. If I can't quite understand why they haven't, because it can't be an argument of their balance sheet size.
Our competitors have got balance sheets as big as us. They're big, large global international companies. Yeah. We'll just continue to invest in regional and rural Australia and support those customers. With that, I'll hand over to Vicki.
Thanks. Thanks, Andy, for that. And thanks, David, for your question. Just on the first one around mobile post-paid and pricing. The first thing I would say is absolutely, we're very conscious of the pressure, the cost of living pressure that our customers are under. You know, back when we announced T22, we made some very big changes and implemented big changes in the way our mobile post-paid propositions work for our customers. We got rid of contracts. We got rid of excess data charges. We got rid of a lot of the things that were at the heart of what customers saw as very big pain points for them. Customers do have incredible flexibility with us. They're not in contract. They can move between plans if their circumstances change. That's a very important piece to understand.
We also do have our multi-brand strategy, so a choice of brands and propositions, that give customers a real choice. The thing I would say is we're very aware of the current circumstances. Yes, we have addressed those core issues with our plans, but. Equally, you know, we manage very closely and work closely with our customers who find themselves in difficult situations and particularly working with vulnerable customers. It's something very much at the forefront for us. In terms of the most recent price changes, you know, when we implemented those, we had an expectation around what we might see in terms of customers moving plans or churning. What we're seeing right now falls in line with what we anticipated.
The question of have we got the balance right, this is always a difficult decision when you're making the decisions around seeing cost pressures from inflation in the business and then making the choices around the right pricing. Importantly, Australian consumers rightly demand a very high level of mobile experience and service, and we have one of the best mobile networks around the world with the Telstra Mobile Network, and we do need to invest in that to deliver the right experience that our customers want. At the moment, they're always difficult decisions, but I think we've probably got that balance about right. It's something we are watching very closely as we see how things unfold and how our customers are adapting and adjusting to the various pressures and cost of living pressures they're facing.
Just in terms of 1 September, yes, it is getting very close now, and I am incredibly excited to move into my new role. Really a massive thank you to Andy. It is great to step into the chair following his leadership and all of the transformation that's been delivered under T22. It doesn't mean it's done. We've still got so much more opportunity ahead of us, and I'm really excited about that. The first thing I would say is the Telstra team is an extraordinary team. There is a very deep passion and sense of purpose for, in what we deliver for customers. That connectivity has never been more important.
I am excited by what we can do for our customers, both in terms of their experience day to day, but importantly in the network and technology solutions that we can bring and help enable them to really get the most out of this new world we're living in. We've all lived through COVID and seen how important the digital world is, and that connectivity that powers it is critical. I am really excited. My initial focus, yes, we've got T25 in place. It's the right strategy. We've just issued guidance to the market for FY 2023 for growth. I'll be very focused on making sure we continue to drive those improvements from a customer standpoint and bringing those exciting leading technology and network solutions to our customers.
Great. Thanks, Dave. Thanks, Vicki. Well, that's the last question for today. Before I wrap, Andy, I know you will be missing all of these questions in the future. I just thought I'd give you one last shot to share any parting gifts.
Oh, no. Just really from me, just to say thank you to the media for their interest and yeah, just following us over time and always giving us a fair go and supporting what we're doing as well at the same time. It's you know, we appreciate the level of interest that you show in Telstra. You know, I'm proud to be leaving the company at this point in time. It's with mixed emotions, but it's the right time and really pleased to be handing over to Vicki, who's gonna do an outstanding job, I know, and to Michael as the CFO. I'm sure our paths will cross again in the future in the various different things I'm sure we'll all be doing.
Thank you very much.
Great. Thanks, Andy. Thanks, everyone.
Thank you.