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Telstra Corporation Limited
Formerly
Public
Traded asASXTLS
NZX: TLS
IndustryTelecommunication
Founded1 July 1975; 45 years ago (1975-07-01)[1]
HeadquartersTelstra Corporate Centre
Melbourne, Australia
Area served
Australia
Worldwide (selected products)
Key people
Andy Penn (CEO)
Vicki Brady (CFO)
John Mullen (Chair)
ProductsFixed line and mobile telephony, Internet, data services, network services, and Pay TV
RevenueIncrease A$26 billion (2017)[2]
Decrease A$6.2 billion (2017)[2]
Decrease A$3.9 billion (2017)[2]
Total assetsDecrease A$42.1 billion (2017)telecommunications company which builds and operates telecommunications networks and markets voice, mobile, internet access, pay television and other products and services. It is a member of the S&P/ASX 20 and Australia's largest telecommunications company by market share.

Telstra has a long history in Australia, originating together with Australia Post as the Postmaster-General's Department upon federation in 1901. Telstra has transitioned from a state-owned enterprise to a fully privatised company and has recently focused on diversified products and emerging technologies.

History

Telstra has a long history in Australia, originating together with Australia Post as the Postmaster-General's Department upon federation in 1901. Telstra has transitioned from a state-owned enterprise to a fully privatised company and has recently focused on diversified products and emerging technologies.

Australia's telecommunications services were originally controlled by the Postmaster-General's Department (PMG),[3] formed in 1901 as a result of Australian Federation. Prior to 1901, telecommunications were administered by each colony. On 1 July 1975, separate commissions were established by statute to replace the PMG. Responsibility for postal services was transferred to the Australian Postal Commission (Australia Post). The Australian Telecommunications Commission (ATC), trading as Telecom Australia, ran domestic telecommunication services.

In 1989, the ATC introduced new buildings and frameworks.

In 1993, the Overseas Telecommunications Commission, a separate government body established in 1946, was merged with the Australian Telecommunications Corporation into the short-lived Australian and Overseas Telecommunications Corporation (AOTC) which continued trading under the established identities of Telecom and OTC. The AOTC was renamed to Telstra Corporation Limited in 1993. The name "Telstra" is derived from the word Telecom Australia (TEL from Telecom and STRA from Australia). The corporation then traded under the "Telstra" brand internationally and "Telecom Australia" domestically until uniform branding of "Telstra" was introduced throughout the entire organisation in 1995.

Telstra has faced competition since the early 1990s from Optus (Australia's second largest communication company) and a number of smaller providers. Telstra once retained ownership of the fixed-line telephone network, but since the nationwide upgrade to the National Broadband Network (NBN), the Australian Government now has legal ownership of these lines since 2007, though Telstra has played a big part in this upgrade supplying resources to the Government on the new network.[citation needed] Telstra also has pay TV and owns 35% of the Australian media company Foxtel [4] Other companies offering fixed-line services must therefore deal with Telstra, except Optus, TransACT and a few others who have installed their own infrastructure.

Overseas Telecommunications Commission

Former OTC dish at Ceduna, South Australia.

The Overseas Telecommunications Commission (OTC) was established by an Act of Parliament in August 1946.[5] It inherited facilities and resources from Amalgamated Wireless Australasia Limited (AWA) and Cable & Wireless, and was charged with responsibility for all international telecommunications services into, through and out of Australia.[6]

On 1 February 1992, it was merged with Australia's domestic telecommunications carrier, the Australian Telecommunications Corporation Limited ("Telecom"), to create the Australian and Overseas Telecommunications Corporation Limited (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra Corporation Limited ("Telstra") for international business in 1993 and domestic business in 1995.[3]

Privatisation

Beginning in 1997 and finalizing in 2011, the federal government began to privatise the corporation. The first three stages were initiated by the Liberal–National Coalition's Howard Government: the first, informally known as "T1" (with shares priced at $3.30), occurred in 1997. "T2" ($7.40) followed in 1999; "T3" ($3.60) in 2006.[3][7] In T1, the government sold one third of its shares in Telstra for A$14 billion and publicly listed the company on the Australian Stock Exchange.[7] In 1998, a further 16% of Telstra shares were sold to the public, leaving the Australian government with 51% ownership. In 2006, T3 was announced by the government and was the largest of the three public releases, reducing the government's ownership of Telstra to 17%.[8] The 17% remainder of Telstra was placed in Australia's Future Fund, a sovereign wealth fund established mainly to meet future liabilities for payment of superannuation to retired federal public servants.[9] In 2009, the Future Fund sold off another $2.4 billion worth of shares, reducing the government's stake in Telstra to 10.9%.[10] In August 2011, under Labor's Gillard Government, the Future Fund sold its remaining "above market weight" Telstra shares, effectively completing Telstra's privatisation.[11]

With more than one million shareholders, Telstra is currently the most widely held ASX-listed company.[12]

Telstra phone booths showing the current colour scheme, replacing the former orange logo with shades of green and blue.

National Broadband Network

On 26 November 2008, Telstra submitted a non-complying tender issued by the federal government to build a National Broadband Network, a 12-page letter proposing a $5 billion broadband network covering between 80 and 90 percent of the Australian population in major cities, despite the tender requiring 98 percent coverage.[13][14]

As a result, Telstra was removed from the National Broadband Network RFP process on 15 December

In 1989, the ATC introduced new buildings and frameworks.

In 1993, the Overseas Telecommunications Commission, a separate government body established in 1946, was merged with the Australian Telecommunications Corporation into the short-lived Australian and Overseas Telecommunications Corporation (AOTC) which continued trading under the established identities of Telecom and OTC. The AOTC was renamed to Telstra Corporation Limited in 1993. The name "Telstra" is derived from the word Telecom Australia (TEL from Telecom and STRA from Australia). The corporation then traded under the "Telstra" brand internationally and "Telecom Australia" domestically until uniform branding of "Telstra" was introduced throughout the entire organisation in 1995.

Telstra has faced competition since the early 1990s from Optus (Australia's second largest communication company) and a number of smaller providers. Telstra once retained ownership of the fixed-line telephone network, but since the nationwide upgrade to the National Broadband Network (NBN), the Australian Government now has legal ownership of these lines since 2007, though Telstra has played a big part in this upgrade supplying resources to the Government on the new network.[citation needed] Telstra also has pay TV and owns 35% of the Australian media company Foxtel [4] Other companies offering fixed-line services must therefore deal with Telstra, except Optus, TransACT and a few others who have installed their own infrastructure.

The Overseas Telecommunications Commission (OTC) was established by an Act of Parliament in August 1946.[5] It inherited facilities and resources from Amalgamated Wireless Australasia Limited (AWA) and Cable & Wireless, and was charged with responsibility for all international telecommunications services into, through and out of Australia.[6]

On 1 February 1992, it was merged with Australia's domestic telecommunications carrier, the Australian Telecommunications Corporation Limited ("Telecom"), to create the Australian and Overseas Telecommunications Corporation Limited (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra Corporation Limited ("Telstra") for international business in 1993 and domestic business in 1995.[3]

Privatisation

Beginning in 1997 and finalizing in 2011, the federal government began to privatise the corporation. The first three stages were initiated by the Liberal–National Coalition's Howard Government: the first, informally known as "T1" (wi

On 1 February 1992, it was merged with Australia's domestic telecommunications carrier, the Australian Telecommunications Corporation Limited ("Telecom"), to create the Australian and Overseas Telecommunications Corporation Limited (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra Corporation Limited ("Telstra") for international business in 1993 and domestic business in 1995.[3]

Beginning in 1997 and finalizing in 2011, the federal government began to privatise the corporation. The first three stages were initiated by the Liberal–National Coalition's Howard Government: the first, informally known as "T1" (with shares priced at $3.30), occurred in 1997. "T2" ($7.40) followed in 1999; "T3" ($3.60) in 2006.[3][7] In T1, the government sold one third of its shares in Telstra for A$14 billion and publicly listed the company on the Australian Stock Exchange.[7] In 1998, a further 16% of Telstra shares were sold to the public, leaving the Australian government with 51% ownership. In 2006, T3 was announced by the government and was the largest of the three public releases, reducing the government's ownership of Telstra to 17%.[8] The 17% remainder of Telstra was placed in Australia's Future Fund, a sovereign wealth fund established mainly to meet future liabilities for payment of superannuation to retired federal public servants.[9] In 2009, the Future Fund sold off another $2.4 billion worth of shares, reducing the government's stake in Telstra to 10.9%.[10] In August 2011, under Labor's Gillard Government, the Future Fund sold its remaining "above market weight" Telstra shares, effectively completing Telstra's privatisation.[11]

With more than one million shareholders, Telstra is currently the most widely held ASX-listed company.[12]

[12]

On 26 November 2008, Telstra submitted a non-complying tender issued by the federal government to build a National Broadband Network, a 12-page letter proposing a $5 billion broadband network covering between 80 and 90 percent of the Australian population in major cities, despite the tender requiring 98 percent coverage.[13][14]

As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008.[15] In response, Telstra announced that it would raise speeds on its existing Next G network and HFC "cable" network so that they both offer higher speeds than the RFP for the NBN requires.[16] Following Telstra's exclusion from the National Broadband Network bidding process Telstra's share price suffered the biggest one-day percentage fall in its history.[17]

NBN Co Limited signed a definitive agreement with Telstra on 23 June 2011, estimated to be worth A$9 billion post-tax net present value,[18] building upon the signing of a financial heads of agreement a year beforehand.[19] Telstra agreed to "disconnect"[20]

As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008.[15] In response, Telstra announced that it would raise speeds on its existing Next G network and HFC "cable" network so that they both offer higher speeds than the RFP for the NBN requires.[16] Following Telstra's exclusion from the National Broadband Network bidding process Telstra's share price suffered the biggest one-day percentage fall in its history.[17]

NBN Co Limited signed a definitive agreement with Telstra on 23 June 2011, estimated to be worth A$9 billion post-tax net present value,[18] building upon the signing of a financial heads of agreement a year beforehand.[19] Telstra agreed to "disconnect"[20] its Internet customers from the copper and hybrid fibre-coaxial networks in areas where FTTP has been installed, and agreed to lease dark fibre, exchange space and ducts to NBN Co. As part of the agreement, Telstra would not be able to market their mobile network as an alternative to the NBN for a number of years.[18] Telstra remains the owner of its networks.[21] On 18 October 2011, Telstra shareholders overwhelmingly approved the deal.[22]

On 14 December 2014 it was announced that in a A$11b renegotiated deal Telstra will transfer ownership of its copper and hybrid fibre-coaxial (HFC) networks to NBN while disconnecting premises from these networks. This ownership allows NBN Co to use these networks "where it sees fit in for its multi-technology NBN rollout."[23]

Under the leadership of David Thodey, Telstra embarked upon a transformation agenda to become more sales and service focused. As part of that, an ambitious customer service agenda was defined.[24]

In 2014, Telstra was named "most respected company" by the Australian Financial Review newspaper.[25]

Market share recoveryIn 2014, Telstra was named "most respected company" by the Australian Financial Review newspaper.[25]

Early in 2010, Telstra announced the creation of a $1 billion "fighting fund" to be used in a concerted effort to win back market share in key product categories. This effort seems to have paid off with strong sales momentum announced in February 2011.[26]

Customer service recovery<

As part of its new strategy, Telstra announced that its "goal is for customer service to be fundamental to everything we do".[27] In August 2011, Telstra Digital announced expansion of customer service into social media with 24/7 coverage.[28] By November 2012, Telstra claimed 140,000 live chats for the month and a growth rate of this service of 600% p.a.[29] In October 2013, Telstra announced that it had grown its Live Chat workforce to 600 and its social media workforce to 30.[30]

The following table shows total complaints handled by the Telecommunications Industry Ombudsman (TIO), and of those, the ones made against Telstra.

Year Total complaints Complaints about Telstra Percentage of all complaints Source The following table shows total complaints handled by the Telecommunications Industry Ombudsman (TIO), and of those, the ones made against Telstra.

In February 2011, Telstra announced the formation of Telstra Digital under the leadership of Gerd Schenkel who was hired from National Australia Bank/UBank.[37][38][39] Telstra Digital's initial purpose was to improve the use of digital channels for customer service. In April 2011, Telstra Digital relaunched its web homepage design.[40] In July 2011, Telstra Digital launched "CrowdSupport", an online forum to crowd source customer service.[41] As of July 2017, Telstra's "CrowdSupport" had 463,000 posts.[42] It was also cited as an example of "scaling at the edge" by Deloitte's Centre for the Edge.[43]

In September 2011, Telstra Digital launched a new account services portal to help achieve its goal of managing 35% of Telstra's transactions.[44] In October 2011, Telstra Digital announced a new mobile smartphone optimised version of its website.[45] In November 2011, Telstra Digital launched an iPhone app on a trial basis[46] as well as a new online mobile phone shop.[47] In July 2012, Telstra Digital launched smartphone and Facebook apps for customers to manage their Telstra accounts[48] and in November 2012, Telstra claimed that over 700,000 customers had downloaded those apps.[49] In August 2013, Telstra revealed that the apps reached 2.5 million downloads.[50]

At a results announcement, CEO David Thodey remarked that "the group's new online strategy was delivering" in the context of a 28% reduction of inbound service calls.[51] Telstra estimated that its digital program will provide productivity benefits of $100 million in the 2013 financial year from lower printing costs, decreasing commissions to third parties, and reduced dependence on call center staff.[52]

In October 2012, Telstra's CEO David Thodey stated, "The rise of online and social media had 'fundamentally changed the way' which the company communicated with its customers".[53] In a 2015 [44] In October 2011, Telstra Digital announced a new mobile smartphone optimised version of its website.[45] In November 2011, Telstra Digital launched an iPhone app on a trial basis[46] as well as a new online mobile phone shop.[47] In July 2012, Telstra Digital launched smartphone and Facebook apps for customers to manage their Telstra accounts[48] and in November 2012, Telstra claimed that over 700,000 customers had downloaded those apps.[49] In August 2013, Telstra revealed that the apps reached 2.5 million downloads.[50]

At a results announcement, CEO David Thodey remarked that "the group's new online strategy was delivering" in the context of a 28% reduction of inbound service calls.[51] Telstra estimated that its digital program will provide productivity benefits of $100 million in the 2013 financial year from lower printing costs, decreasing commissions to third parties, and reduced dependence on call center staff.[52]

In October 2012, Telstra's CEO David Thodey stated, "The rise of online and social media had 'fundamentally changed the way' which the company communicated with its customers".[53] In a 2015 Deloitte report, Telstra disclosed that its "CrowdSupport" service community had generated 200,000 pieces of user-generated content.[54] In August 2016, Telstra disclosed that "more than 60%" of visitors to "CrowdSupport" manage to find an answer on the community.[55]

In February 2013, Telstra introduced the ability to pay its bills via PayPal.[56] And in June 2013, Telstra launched a new website, including the ability for customers to link their online accounts to their Facebook identity.[57][58]

In March 2014, Telstra announced a new digital development program called "Digital First" with a stated aim to conduct 65 to 70 percent of its transactions online.[59] Telstra published a white paper sharing some key metrics of its digital program:[60]

In September 2014, Telstra announced the opening of a "Digital Transformation Centre" in Sydney to design and built new digital tools for its service systems.[63][64]

In June 2014, Telstra disclosed that it had 3 million customers on "electronic billing" saving it $3 million per month in costs.[65] Telstra also mentioned that live chat accounted for 10% of total contact centre activity.[66]

In December 2015, Telstra Digital launched customer service on Periscope.[67]

In October 2016, the Executive Director of Telstra Digital Gerd Schenkel left Telstra[68] to become CEO of a fintech company.[69]

Retail store network

Telstra Store in Chadstone Shopping Centre, Melbourne
[65] Telstra also mentioned that live chat accounted for 10% of total contact centre activity.[66]

In December 2015, Telstra Digital launched customer service on Periscope.[67]

In October 2016, the Executive Director of Telstra Digital Gerd Schenkel left Telstra[68] to become CEO of a fintech company.[69]

Telstra owns and operates a series of retail stores known as Telstra Stores. Some are directly owned and operated by the Telstra Corporation and some are operated by licensees.[70]

As of May 2016, Telstra has a total of 360 retail stores across Australia.[71] This includes several new 'Discovery' stores, where Telstra has invested millions in redesigning key stores based on local requirements. These designs include new displays, accessory shops, digital tickets and free baristas.[72]

109 of Telstra's stores are owned and operated by Vita Group, a publicly listed company with a market capitalisation of approximately $600m (June 2016).

In February 2011, Telstra announced the creation of an additional 100 retail stores within three years.[37]

In August 2016, Telstra disclosed that "over 300" Telstra stores were equipped with low energy Bluetooth beacons.[citation needed]

[73] The carrier opened the world's first Android store, called "Androidland", on Bourke Street, Melbourne, Australia, in December 2011.[74]

These developments built on Telstra's T[life] concept stores it had launched in the early 2000s.[75]As of May 2016, Telstra has a total of 360 retail stores across Australia.[71] This includes several new 'Discovery' stores, where Telstra has invested millions in redesigning key stores based on local requirements. These designs include new displays, accessory shops, digital tickets and free baristas.[72]

109 of Telstra's stores are owned and operated by Vita Group, a publicly listed company with a market capitalisation of approximately $600m (June 2016).

In February 2011, Telstra announced the creation of an additional 100 retail stores within three years.[37]

In August 2016, Telstra disclosed that "over 300" Telstra stores were equipped with low energy Bluetooth beacons.[citation needed]

[73] The carrier opened the world's first Android store, called "Androidland", on Bourke Street, Melbourne, Australia, in December 2011.[74]

These developments built on Telstra's T[life] concept stores it had launched in the early 2000s.[75]

In October 2011, Telstra launched a new brand identity and color scheme.[76] The new identity launched with the slogan "It's how we connect", and features the "T" from the previous logo in a variety of colors. This was followed by a "brand refresh" in February 2014 and again in 2016.[77] In 2013, Telstra was assessed as Australia's third most valuable brand, after Woolworths and BHP Billiton.[78] In 2016 Telstra became Australia's most valuable brand, which it maintained in 2017.[79]

Sponsorships

Telstra sponsors numerous awards around Australia, including the Australian Business of the Year award, the MYOB Small Business Award, and the National Aboriginal & Torres Strait Islander Art Award (NATSIAA) which has become known as the Telstra Award.[80] Notable past winners include Vaxine,[

Telstra sponsors numerous awards around Australia, including the Australian Business of the Year award, the MYOB Small Business Award, and the National Aboriginal & Torres Strait Islander Art Award (NATSIAA) which has become known as the Telstra Award.[80] Notable past winners include Vaxine,[81] APS Plastics,[82] and eWAY.[83]

Telstra was a major sponsor of the V8 Supercars car racing championship through its BigPond brand and directly sponsored the Telstra was a major sponsor of the V8 Supercars car racing championship through its BigPond brand and directly sponsored the Sydney Telstra 500 event, the final round of the series held at Sydney Olympic Park.[84] The sport ended this deal at the conclusion of the 2012 season.

In the past, Telstra had naming rights to the Telstra Dome in Melbourne, but lost these rights to Etihad Airways, an airline based on the United Arab Emirates, on 1 March 2009.[85] Telstra is also the naming rights sponsor of the National Rugby League Premiership. Telstra is also the principal sponsor of Swimming Australia. They also sponsored the Minardi team for the 2002 F1 season, and the Rally Australia 2006 Championships.[86]

Telstra also had the naming rights (under TelstraClear) for the TelstraClear Pacific events centre in Manukau City, New Zealand.[87][88]

In November 1997, the Australian government sold the first tranche of its Telstra shares, 4.29 Billion shares, publicly at a price of $3.40 per share to institutional investors and $3.30 to retail investors. This sale is commonly referred to as "T1".[89] In October 1999, the Australian government sold the second tranche of its Telstra shares under the "T2" program for $7.80 per share to institutional investors and $7.40 to retail investors.[89] In November 2006, the government sold a third tranche of its shares, "T3", at $3.60 per share.[90]

Since its privatisation, Telstra shares have hit a low of just over $2.50 per share in late 2010.[91] Since then, Telstra shares have risen to $5 per share in December 2013 [91] Since then, Telstra shares have risen to $5 per share in December 2013 [91] and $6 per share in December 2014.[92] On 17 May 2019 the shares closed on the ASX at $3.56 up from a twelve-month low of $2.547 per share[93]

In February 2014, Telstra raised its dividend from 14c to 14.5c per share.[94]

Amid the global pandemic crisis of the coronavirus in 2020, Telstra was one of three companies of the ASX 200 to gain in the week starting 15 March. It increased by 1.8 percent on the Australian Securities Exchange.[95]

In January 2014, Telstra announced its intention to sell 70% of Sensis to Platinum Equity for $454 million.[96] Sensis was said to have once been "one of Telstra's most lucrative businesses" and reportedly "has been under pressure in recent years amid competition from more agile digital alternatives such as Google".[96]

In February 2014, Telstra was reportedly seeking to reduce Sensis employment by 400 to 1,000 positions.[97][98]

In February 2014, Telstra was reportedly seeking to reduce Sensis employment by 400 to 1,000 positions.[97][98]

In September 2013, Telstra launched a new health business unit – Telstra Health and hired Shane Solomon as the head.[99]

In September 2016, Telstra Health was awarded a $220m government contract amidst claims of "lack of transparency".[100]

Shane Solomon left Telstra in Nov 2016.[101]

In September 2016, Telstra Health was awarded a $220m government contract amidst claims of "lack of transparency".[100]

Shane Solomon left Telstra in Nov 2016.[101]

In December 2014, Telstra signed an agreement with the federal government's A.C.N. 86 136 533 741 (NBN Co) Limited. This agreement is said to retain the $11b value for Telstra of the original agreement from October 2011 and will see the company progressively sell its copper and HFC networks to A.C.N. 86 136 533 741 (NBN Co) Limited.[113]

Andy Penn era (2015–present)

On 19 February 2015, Telstra announced that CEO David Thodey would retire on 1 May 2015 and be replaced by successor Andy Penn.[114]

Penn indicated new focus on growth in international markets,[115] however this strategy experienced a setback with the failure of a joint venture to build a mobile phone network in the Philippines.[116]

On 14 March 2016, Telstra ended their talks between the company and the Philippine-based conglomerate San Miguel Corporation for a planned joint telecommunications venture in the Philippines due to several factors.[117] San Miguel, on their part said that it will continue to switch on a new telco network with a high-speed internet service in the future.

In an interview in December 2016, Penn declared that he was "no longer looking for a mobile phone footprint".[118]

In 2016, Telstra suffered a series of network outages[119][120] for which the company apologised.[121]

By the middle of November 2016, Telstra's share price had dropped 29% (to $4.71) from its prior high of $6.61 in February 2015[122] and shareholders started demanding a strategy to respond.[123]

Andy Penn's first year in office was not considered a success with multiple network outages and executive departures marring the company's reputation.[124]

Excluding the one off windfall from its Auto home share sale, Telstra profit was down 7% in 2016.[118]

In Nov 2016, Standard & Poor's reduced its outlook of Telstra from "stable" to "negative".

On 19 February 2015, Telstra announced that CEO David Thodey would retire on 1 May 2015 and be replaced by successor Andy Penn.[114]

Penn indicated new focus on growth in international markets,[115] however this strategy experienced a setback with the failure of a joint venture to build a mobile phone network in the Philippines.[116]

On 14 March 2016, Telstra ended their talks

Penn indicated new focus on growth in international markets,[115] however this strategy experienced a setback with the failure of a joint venture to build a mobile phone network in the Philippines.[116]

On 14 March 2016, Telstra ended their talks between the company and the Philippine-based conglomerate San Miguel Corporation for a planned joint telecommunications venture in the Philippines due to several factors.[117] San Miguel, on their part said that it will continue to switch on a new telco network with a high-speed internet service in the future.

In an interview in December 2016, Penn declared that he was "no longer looking for a mobile phone footprint".[118]

In 2016, Telstra suffered a series of network outages[119][120] for which the company apologised.[121]

By the middle of November 2016, Telstra's share price had dropped 29% (to $4.71) from its prior high of $6.61 in February 2015[122] and shareholders started demanding a strategy to respond.[123]

Andy Penn's first year in office was not considered a success with multiple network outages and executive departures marring the company's reputation.[124]

Excluding the one off windfall from its Auto home share sale, Telstra profit was down 7% in 2016.[118]

In Nov 2016, Standard & Poor's reduced its outlook of Telstra from "stable" to "negative".[125]

In December 2016, Telstra announced the appointment of Robyn Denholm as its new COO, following the departure of Kate McKenzie who left after a series of network outages.[126] In December 2016, Telstra announced the hire of a new CTO to replace the predecessor who left amongst allegations of CV fraud.[127]

In 2016, the government raised the possibility that Telstra's regional mobile network may be forced to be opened to competitor' use under a roaming scheme. A prospect strongly being fought by Telstra.[128]

In February 2017, Telstra announced a that revenue had dropped 3.5%, Net Profit After Tax had dropped by over 14%.[129] As a result, Telstra's share price dropped by 4.5% on the same day.[130]

In August 2017, Telstra announced that it would cut its dividend, leading to a drop in share price by over 10% in a single day to reach a 5-year low.[131]

Andy Penn's CEO tenure had been severely tarnished after $28.5b in Telstra's market value had been destroyed under his leadership.[132]

Andy Penn also lost several senior executives since his appointment: Kevin Russell (after 18 months), head of Consumer and Small Business, Gordon Ballantyne, head of Retail, Karsten Wildberger (after 2 months in the job),[133] Kate McKenzie, COO,[134] and Cynthia Whelan[135] The only high-profile appointment of Andy Penn's was Stephen Elop who was once dubbed "world's worst CEO"[136][137] after he led Nokia into its demise.[138]

Jason Laird, Telstra's communications manager and "chief social officer" was ridiculed in the press for his unrelated social media post during the results day.[139]

Andy Penn called 2017 "a strong year".[140]

In May 2018, Telstra issued a profit warning which lead to a decline in the company's share price of 4% on that day.[141] In the weeks after the announcement, the share price continued to drop to a seven-year low, amidst speculation that the company may be forced to cut its dividend again.[142] As a consequence, [CEO] [Andy Penn]'s tenure came into question with his presiding over a $46b loss of shareholder value.[143]

On 20 June 2018, Telstra announced a reduction of 9,500 jobs (8,000 net job losses after considering 1,500 new roles to be created) as part of its "Telstra 2022" plan.[144] The news was not well received: Telstra's share price dropped as much as 7.4% immediately. Unions, politicians, and the wider community condemned the move which was widely considered a last ditch attempt of Andy Penn to secure his own job.[145][146][147]

In July 2018, CEO Andy Penn announced the firing of two key, highly respected executives, Warwick Bray and Will Irving.[148]

At the October 2018 Annual General Meeting, Penn and the Chair John Mullen were under intense pressure to justify executive pay, including Penn's.[149]

Telstra is Australia's incumbent and largest provider of fixed-line services.[150] These include home phone, business and other PSTN products.[citation needed]

Telstra outsources a significant portion of network installation and maintenance to private contractors and joint ventures, such as ABB Communications and STCJV (Siemens Thiess Communications Joint Venture).[151]

Telstra also owns and maintains the majority of Australia's public telephones.[citation needed] In 2006, Telstra announced it would remove many of the phones, citing vandalism and the increasing adoption of mobile telephones.[152]

Telstra Mobile is Australia's largest mobile telephone service providers, in terms of both subscriptions and coverage.[153][154] Telstra operates Australia's largest GSM and 3G UMTS (branded as Next G) mobile telephony networks in Australia,[155] as well as holding a 50% stake in the 3GIS Ltd 2100 MHz UMTS network infrastructure, shared with Hutchison (Three).[citation needed] As of September 2007, Telstra had an estimated 9.3M mobile subscribers.[153] Telstra Mobile services are available in post-paid and prepaid payment types, known as Telstra Pre-Paid (formerly communic8 Pre-Paid).[156]

Telstra's GSM network was the first digital mobile network in Australia. It was launched in April 1993 on the 900 MHz band as "Telstra MobileNet Digital".[157] The GSM network has carried the majority of Telstra's mobile subscribers for the last 10 years and has seen numerous upgrades.[ABB Communications and STCJV (Siemens Thiess Communications Joint Venture).[151]

Telstra also owns and maintains the majority of Australia's public telephones.[citation needed] In 2006, Telstra announced it would remove many of the phones, citing vandalism and the increasing adoption of mobile telephones.[152]

Telstra Mobile is Australia's largest mobile telephone service providers, in terms of both subscriptions and coverage.[153][154] Telstra operates Australia's largest GSM and 3G UMTS (branded as Next G) mobile telephony networks in Australia,[155] as well as holding a 50% stake in the 3GIS Ltd 2100 MHz UMTS network infrastructure, shared with Hutchison (Three).[citation needed] As of September 2007, Telstra had an estimated 9.3M mobile subscribers.[153] Telstra Mobile services are available in post-paid and prepaid payment types, known as Telstra Pre-Paid (formerly communic8 Pre-Paid).[156]

Telstra's GSM network was the first digital mobile network in Australia. It was launched in April 1993 on the 900 MHz band as "Telstra MobileNet Digital".[157] The GSM network has carried the majority of Telstra's mobile subscribers for the last 10 years and has seen numerous upgrades.[citation needed] 1800 MHz capacity channels were added to the network in the late 1990s as well as GPRS packet data transmission capabilities. As part of the UMTS Next G deployment, the GSM network was also upgraded to a full EDGE data transmission capability in 2006 providing data transmission capabilities greater than 40 kbit/s on its GSM network.[158]

In 1981, Telstra (then Telecom Australia) was the first company to provide mobile telephony services in Australia. The first automated mobile service operated in the major capital cities on 500 MHz using the '007' dialling prefix. This network only provided "car phone" capabilities to subscribers as portable hand-held terminals were not practical at that time. The first cellular system in Australia offering portable hand-held phones was launched by Telstra in 1987 using the AMPS analogue standard on the 800 MHz band. This network at its peak had over 1 million subscribers, but was mandated by the government to be closed down by the year 2000, partially due to privacy concerns which resulted from the AMPS technology, but also because of arrangements undertaken to secure sufficient interest in the GSM network licenses offered in 1992 to competitors. A license condition placed on Telstra to maintain an equivalent coverage footprint at the time resulted in Telstra deciding to deploy an IS-95 CDMA network in its place.

Telstra owns 7,400 Next G Base Stations.[159]

Telstra Wholesale[160] provides products such as Data, Mobile, Voice, and other Facilities (including Co-location and Duct Access)[161] to other companies and organisations for re-sale.[162] Telstra Wholesale also provides operational support for its customers,[163] and facilities for international customers such as International Data Transport and IP Transport.[164]

Due to Telstra's position as Australia's incumbent telecommunications provider, Telstra Wholesale is the incumbent and dominant wholesaler of ADSL services to other Internet Service Providers. Telstra installed the first DSLAMs in exchanges prior to 2000, and began wholesaling access in late 2000.[165] Telstra Wholesale has a comprehensive network of ADSL DSLAMs (the largest in Australia) and allows competitors access to each Telstra DSLAM at up to ADSL2+ speeds if available, and at ADSL1 speeds should 2+ be unavailable.

Since 2013, Telstra has wholesaled its 3G network. However the wholesale product only gives access to 7000 of Telstra's over 8000 base stations.

Retail internet

Telstra provides internet services for personal and business clients, through its DSLAMs in exchanges prior to 2000, and began wholesaling access in late 2000.[165] Telstra Wholesale has a comprehensive network of ADSL DSLAMs (the largest in Australia) and allows competitors access to each Telstra DSLAM at up to ADSL2+ speeds if available, and at ADSL1 speeds should 2+ be unavailable.

Since 2013, Telstra has wholesaled its 3G network. However the wholesale product only gives access to 7000 of Telstra's over 8000 base stations.

Telstra provides internet services for personal and business clients, through its internet service provider (ISP), BigPond. BigPond provides internet products over various delivery methods, including ADSL, Cable Internet, Dialup, Satellite, and Wireless Internet (through the Next G network). At the end of the 2007 financial year, BigPond had over two million broadband subscribers.[166] In 2007 a survey of 14,000 people by PC Authority magazine found BigPond users rated poorly for customer service, and less than a third considered their service value for money. However, BigPond argued that the survey's structure had encouraged people to provide extreme opinions.[167] In January 2009, Telstra was ranked as the top Australian ISP in terms of performance by Epitiro.[168]

Since 2013, the BigPond brand has been discontinued and merged with Telstra.[169]

Cable internet
  • ADSL – BigPond provides both ADSL and ADSL2+ services where available, with speeds ranging from 256 kbit/s down/64 kbit/s up to 20 Mbit/s down/1 Mbit/s up. The current speeds available on ADSL plans that BigPond offers are "up to" 1.5 Mbit/s down/256 kbit/s up, "up to" 8 Mbit/s down/384 kbit/s up and "up to" 20 Mbit/s down/1 Mbit/s up.
Naked DSL – A six-week trial of two kinds of naked DSL to "assess customer demand" was launched on 1 June 2010. 'Pure DSL' having the ability to receive incoming calls and make emergency calls, and 'Naked DSL' being offered without a dial tone.[170]

On 10 November 2006, Telstra made two ma

On 10 November 2006, Telstra made two major changes to their ADSL network. The first was an increase of wholesale ADSL speeds from 1.5 Mbit/s/256 kbit/s to 8 Mbit/s/384 kbit/s. Telstra also released an ADSL2+ broadband service offering download speeds of up to 24 Mbit/s from exchanges where competitors were already offering ADSL2+ services.

On 6 February 2008, Telstra announced that it would activate high-speed ADSL2+ broadband in a further 900 telephone exchanges serving 2.4 million consumers across every state and territory in Australia. Telstra also claimed that it has received assurances from the Government that it would not be forced to wholesale these services to other providers, and that the move came "after the Government made clear it did not consider a compelling case had been made for regulating third-party access to the service – an assurance sought by Telstra for more than one year".[171]

On 10 June 2008, it was announced that Telstra was in discussions with some wholesale customers in reference to wholesaling ADSL2+ services.[172]

Mobile broadband

Telstra's Hybrid Fibre Coax (HFC) (commonly referred to as "cable") network is one of the delivery systems used by the Australian Subscription Television provider Foxtel. Telstra owns 35% of Foxtel in a joint venture with News Corp Australia who own the remainder.[179] Telstra also sell Foxtel's "iQ digital-video-recorder" to customers in Foxtel's service area (as "Foxtel from Telstra"). Telstra offers discounts for Telstra full-service fixed-line customers, with internet, pay TV and/or mobile services with Telstra. Such discounts can include free installation and the first month of the best Foxtel package (all channels) for free.[180]

Entertainment and content

BigPond Music

MOG, a subscription online music service and blog network, announced a partnership with Telstra offer their product in Australia – the first region outside of the United States to have access.[181] Telstra and MOG launched under the BigPond Music branding on 21 June 2012,[182] however ended this service in September 2014.[183] They replaced it with bonus inclusions related to Apple Music.

BigPond Games and GameArena

GameArena was a website dedicated to video gaming operating under the BigPond brand that was managed by Mammoth Media and b

Telstra's Hybrid Fibre Coax (HFC) (commonly referred to as "cable") network is one of the delivery systems used by the Australian Subscription Television provider Foxtel. Telstra owns 35% of Foxtel in a joint venture with News Corp Australia who own the remainder.[179] Telstra also sell Foxtel's "iQ digital-video-recorder" to customers in Foxtel's service area (as "Foxtel from Telstra"). Telstra offers discounts for Telstra full-service fixed-line customers, with internet, pay TV and/or mobile services with Telstra. Such discounts can include free installation and the first month of the best Foxtel package (all channels) for free.[180]

Entertainment and content

MOG, a subscription online music service and blog network, announced a partnership with Telstra offer their product in Australia – the first region outside of the United States to have access.[181] Telstra and MOG launched under the BigPond Music branding on 21 June 2012,[182] however ended this service in September 2014.[183] They replaced it with bonus inclusions related to Apple Music.

BigPond Games and GameArena

GameArena was a website dedicated to video gaming operating under the BigPond brand that was managed by Mammoth Media and based on the east coast of Australia. The site provided news, downloads and servers primarily for the GameArena was a website dedicated to video gaming operating under the BigPond brand that was managed by Mammoth Media and based on the east coast of Australia. The site provided news, downloads and servers primarily for the PC, and Mac, though it later branched out to include console sites. GameArena provided an online game shop GameNow, which sported various benefits to Telstra customers.[184]

Usage of the GameArena file library, gaming servers and booking service were freely available to anyone, but provided specific advantages to Telstra customers such as preference in downloads and unmetered usage, as well as various bonuses in competitions. In 2005, GameArena went through a new shift with the merging of GameNow and Gameshop into itself.

Usage of the GameArena file library, gaming servers and booking service were freely available to anyone, but provided specific advantages to Telstra customers such as preference in downloads and unmetered usage, as well as various bonuses in competitions. In 2005, GameArena went through a new shift with the merging of GameNow and Gameshop into itself. The name became simply BigPond GameArena.[185]

GameArena once operated over 100 gaming servers, which were monitored by a volunteer force of administrators, known as GameOps. GameCreate was a service offered free of charge where users may book a server for a specific game for a 2-hour period of time. This server was private and could be used for either ladder training or social events.[186]

GameArena servers and its website closed on 20 October 2014.[187]

Telstra BigPond owned and operated a number of virtual islands in the online game Second Life[188] for approximately three years. BigPond closed its Second Life presence in December 2009.[189]

Facebook

In 2011, Telstra launched "Blurtl", a Facebook ap

In 2011, Telstra launched "Blurtl", a Facebook application that allows the user to leave audio messages on their Facebook walls.[190]

Controversies

The following is a list of known active mobile networks used by Telstra:

Frequencies used on the Telstra Network
Frequency 3GPP Band Protocol Class Notes
850 MHz B5 UMTS/ Normal Exit PeriodicService.php