"The XT mobile network continued to grow strongly during the quarter, with 839,000 customer connections at 30 September 2010, representing just under 40 per cent of our total mobile base," he said.

"On Ultra Fast Broadband, Telecom is continuing to engage in detailed discussions with both Crown Fibre Holdings and the Ministry of Economic Development, and we await further announcements."

Telecom also noted the rollout of its fibre to the home network remained on track with 292 new fibre-fed cabinets rolled out by Chorus during the quarter.

The AAPT business also recorded revenues of A$252 million for the quarter, down 13.7 per cent year on year from September 2009's A$292 million. EBITDA declined by A$7 million to A$22 million for the quarter. In August the company claimed success in halting the , posting a drop in EBITDA of 0.2 per cent for the full financial year to 30 June.