Australian mobile carriers have argued over the potential for significant changes in plan prices over the next year, with Telstra and Optus unable to agree on the future course for consumers.
The growth in customers had contributed to a 10.7 percent increase in revenue to $8.1 billion for Telstra's mobile business. Handset sales themselves were worth $1.16 billion, up for $856 million.
Thodey said the increase in mobile users in total had come as a result of customers expanding the number of mobile devices they owned and churn from other carriers.
By comparison, Vodafone reported a sharp drop of 375,000 customers across the year with Optus reporting only marginal increases of 28,000 customers.
O'Sullivan would not disclose the level of smartphone penetration among Optus' current customer base.
Relatively slow smartphone sales for Telstra had taken its effect, however, with the telco reporting an inventory impairment of $27 million to hold slow-moving smartphone stock.
Gartner telco analyst Geoff Johnston attributed the stark differences in smartphone penetration to potential changes in reporting sales figures by carriers.
Regardless though, he said smartphone penetration would inevitably grow to become the vast majority of mobile handsets over time.
"The manufacturers are trying to promote it that way," he said. "When you look at your overheads and the handling you might as well sell smartphones - it's way more profitable.
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