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Telstra: focusing on the customer? « Previous | |Next »
November 19, 2005

The Telstra debate has moved on from this situation:

leahyQ.jpg
Leahy, oh Barnaby

Telstra is really going strong against any form of regulation of competition about allowing its rivals to use its proposed billion dollar optical fibre network that is designed to offer high speeed broadband, net phone, video on demand and maybe movies. Telstra, for once, is talking value, whilst saying such an investment will double cash flow to $5.9 million by 2010. The telco is becoming a lean, customer-focused and state-of-the-art media company that present consumers with a single, digital home gateway through which it will offer a raft of services that wil make lots of money.

At the same time whilst it raises wholesale prices, Telstra threatens to not invest in the fibre optical cable network unless its competitors are denied access. It proposes to cut its workforce and it continues to confront the Howard Government, which it keeps in the dark about its plans. The Government ministers bristle.

Telstra's share price continues to fall towards the $4 mark--there has been wiping off of $13 billion in shareholder value since Sol Trujillo became CEO last July. The market is still not persuaded by the high risk strategy of a total rejection of planned regulation. Scepticism is justified because Telstra once described itself as the Telstra as the "internet sun" around which other planets would revolve. Well, it is the other planets (ISP's) that have moved onto ADSL-2 and fast data networks, not Telstra. The gorrilla in the marketplace is not a market leader.

| Posted by Gary Sauer-Thompson at 2:22 PM | | Comments (0)
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