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Telstra Corporation Limited
Company typePublic company
ASX: TLS
NZX: TLS
OTC Pink: TLSYY
IndustryTelecommunications
Founded12 June 1975[1]
HeadquartersTelstra Corporate Centre
Melbourne, Australia
Area served
Worldwide
Key people
David Thodey (CEO)
Catherine Livingstone (Chair)
ProductsFixed line and mobile telephony, Internet services, digital television
RevenueIncrease A$25.5 billion (2013)[2]
Increase A$3.9 billion (2013)[2]
Total assetsIncrease A$39.525 billion (2012)[2]
Total equityDecrease A$11.689 billion (2012)[2]
Number of employees
35,790 (2011)[2]
Websitewww.telstra.com

Telstra Corporation Limited (known as Telstra) is Australia's largest and incumbent telco. Telstra builds and operates telecommunications networks and markets voice, mobile, fixed & wireless internet access, pay television and other entertainment products and services. Telstra is one of Australia's largest consumer service providers and has one the most recognised brands in the country.

Telstra has a long history in Australia, originating as a government department, the Postmaster General together with Australia Post. Relatively recently, Telstra was fully privatised and has been undergoing a change program to become more "sales and marketing led" under its current CEO, David Thodey.

The federal government's National Broadband Network (NBN) is imposing structural and regulatory changes on Telstra, the full extent of which are yet to be played out.

History

Telecom Australia logo 1975-1993.

Australian 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 was reconstituted as the Australian Telecommunications Corporation.

In 1992, 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 Telecommunication Australia (TEL from Telecommunication 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 2nd largest communication company) and a number of smaller providers. It retains ownership of the fixed line telephone network, as well as pay TV and data cable network Foxtel. 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

File:Otc logo.jpg
OTC logo
OTC dish at Ceduna, South Australia.

The Overseas Telecommunications Commission (OTC)[4] was established by an Act of Parliament in August 1946. 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.

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]

When first established in 1946, the OTC inherited facilities which had been depleted during World War II and faced rising costs and falling profits. From this tenuous beginning, the organisation was to grow over the years to gain world standing on the international telecommunications stage.[citation needed]

Throughout rapid developments in undersea cable networks, global satellite systems and burgeoning digital technologies, the OTC maintained a keen watch over its services to ensure continued quality. It also maintained and developed its links with maritime services, one of the initial arms of Australia’s international telecommunications network.!

Privatisation

Telstra was privatised in three different stages, informally known as "T1" ($3.30), "T2" ($7.40) and "T3" ($3.60) in 1997, 1999 and 2006 respectively.[3][5] 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.[5] In 1999, 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%.[6] The 17% remainder of Telstra was placed in Australia's Future Fund, which will provide superannuation and pensions for Australia's public servants.[7] In 2009, the Future Fund sold off another $2.4B worth of shares reducing the government's stake in Telstra to 10.9%.[8] In August 2011, the Future Fund sold its remaining "above market weight" Telstra shares, effectively completing Telstra's privatisation.[9]

National Broadband Network

Main article: 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 per cent of the Australian population in major cities, despite the tender requiring 98 per cent coverage.[10][11]

As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008.[12] In response, Telstra has announced that it will 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.[13] 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.[14]

NBN Co signed a definitive agreement with Telstra on 23 June 2011, estimated to be worth A$9 billion post-tax net present value,[15] building upon the signing of a financial heads of agreement a year beforehand.[16] Telstra agreed to "disconnect"[17] 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.[15] Telstra remains the owner of its networks.[18] On 18 October 2011, Telstra shareholders overwhelmingly approved the deal.[19]

Separation threat

On 15 September 2009, the Australian Government announced new plans to structurally separate Telstra into two separate entities; a retail and wholesale arm.[20] Senator Stephen Conroy, Minister for Broadband and Communications, had stated to Telstra that the company can either "break itself up or (the government) will do it for them".[21]

Privacy investigation

On 12 July 2011, the Office of the Australian Information Commissioner (OAIC) released the findings of its investigation into a mailing list error by Telstra Corporation Limited (Telstra) which resulted in approximately 60,300 Telstra customers’ personal information being sent to other customers. The Australian Privacy Commissioner Timothy Pilgrim said

Our investigation has confirmed that while Telstra breached the Privacy Act when the personal information of a number of its customers was disclosed to third parties; this incident was caused by a one-off human error. It was not a result of Telstra failing to have reasonable steps in place to protect the personal information of its customers, as required by the Privacy Act.

The government probe determined that Telstra had security measures in place to protect customer personal information involved in mail campaigns. These measures included privacy obligations in agreements with mailing houses, privacy impact assessments, and procedures to ensure staff handle personal information appropriately during mail campaigns.

"In this instance, taking into account the range of measures Telstra has in place for mail campaigns, I consider that the one-off human error that occurred does not mean that Telstra failed to comply with its obligation to take reasonable steps to protect the personal information of its customers. Therefore, I consider that Telstra has not breached this particular aspect of the Privacy Act", the privacy commissioner said.[citation needed]

The commissioner determined that Telstra had acted "immediately" to prevent further breaches, notify customers, and review its data security practices.

In the report, Pilgrim related that the Australian government is currently considering recommendations from the Australian Law Reform Commission to introduce mandatory data breach notification laws in Australia.

Strategy and execution 2010 onwards

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.[22]

Market share recovery

Early in 2010, Telstra announced the creation of a $1b "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.[23]

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".[24]

For the financial year ending June 2011, Telstra saw TIO complaints drop by 3% to 78,949.[25]

Telstra Digital (2011)

In February 2011, Telstra announced the formation of Telstra Digital under the leadership of Gerd Schenkel who was hired from National Australia Bank/UBank.[26][27][28] Telstra Digital's initial purpose is to improve the use of digital channels for customer service. In March 2011, Telstra Digital launched new mobile phone plans that include electronic bills and payments and levy a $2 charge for paper bills.[29] In April 2011, Telstra Digital relaunched its web homepage design.[30] In July 2011, Telstra Digital launched "CrowdSupport", an online forum to crowd source customer service.[31] This was later copied by rival Optus.[32] As of July 2013, Telstra's "CrowdSupport" had 65,000 members and 77,000 posts.[33] It was also cited as an example of "scaling at the edge" by Deloitte's Centre for the Edge.[34]

In August 2011, Telstra Digital announced expansion of customer service into social media with 24/7 coverage.[35] In June 2013, Telstra was ranked ninth in large Australian companies in its Facebook presence [36] and in May 2013 Telstra was ranked fifth globally in the quality of its customer service on Facebook.[37] As of August 2013 Telstra 24/7 now ranks #1 in the quality of its customer service within Australia, ousting Vodafone and Optus at 3rd & 4th respectively.[37]

By November 2012, Telstra claimed 140,000 live chats for the month and a growth rate of this service of 600% p.a.[38]

In October 2013, Telstra announced that it had grown its Live Chat workforce to 600 and its Social workforce to 30.[39]

In September 2011, Telstra Digital launched a new account services portal to help achieve its goal of managing 35% of Telstra's transactions[40] In February 2012, Telstra Digital announced it had achieved 28% of Telstra's transactions online.[41][42] In November 2012, Telstra announced it had achieved 35% of its service transactions through digital channels "about 9 months ahead of target".[43] In September 2013, Telstra disclosed that 40% of transactions were "now completed online".[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 2.5m 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 $100m in the 2013 financial year from lower printing costs, decreasing commissions to third parties, and reduced dependence on call centre staff.[43]

In October 2012, Telstra's CEO David Thodey stated that "The rise of online and social media had 'fundamentally changed the way' which the company communicated with its customers."[52]

In December 2012, Telstra published a white paper describing the broad impact of the digital economy and what firms in traditional sectors can do to deal with its impact.[53]

In February 2013, Telstra introduced the ability to pay its bills via PayPal.[54] And in June 2013, Telstra launched a new website, including the ability for customers to link their online accounts to their Facebook identity.[55][56]

In December 2013, Telstra announced, as part of its Disability Action Plan, its intentions to remove all "captchas" from its websites.[57]

In 2013, Telstra launched a new loyalty scheme called "TELSTRA THANKS" which allows customers to buy discounted movie tickets, music and sports tickets on its website.[58][59] As part of this program, Telstra streamed live the Bon Jovi concert in December 2013 on its website.[60]

Expansion of retail network

In February 2011, Telstra announced the creation of an additional 100 retail stores within three years.[26]

New brand

Telstra's old logo
Telstra's old logo

In October 2011, Telstra launched a new brand identity and colour scheme.[61] The new identity launched with the slogan "It's how we connect", and features the 'T' from the previous logo in a variety of colours.

In 2009, a brand agency ranked Telstra's brand 1st most valuable in Australia.[62] In 2012, a consulting firm ranked Telstra's brand second most valuable in Australia.[63] In 2013, a brand cnosultancy ranked Telstra's brand 174th globally, 27th in global telco, and 3rd in Australia.[64]

Share price history and movements

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". [65] 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. [66] In November 2006, the government sold a third tranche of its shares, "T3", at $3.60 per share. [67]

Since its privatisation, Telstra shares have hit a low of just over $2.50 per share in late 2010. [68] Since then, Telstra shares have risen to over $5 per share in December 2013. [69]

Products and services

Fixed lines and mobile

See also: Next G
Telstra mobile phone base station in Wireless Hill Park, Western Australia.

Telstra is Australia's dominant and largest provider of fixed line services.[citation needed] These include home phone, business and other PSTN products. Due to Telstra owning the majority of Australia's copper network, this has allowed them to become the dominant provider of these services.[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).[70]

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 unprofitability due to vandalism and the increasing take-up and use of mobile telephones.[71]

Telstra Mobile is Australia's largest mobile telephone service providers, in terms of both subscriptions and coverage.[72][73] Telstra operates Australia's largest GSM and 3G UMTS (branded as Next G) mobile telephony networks in Australia,[74] 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.[72] Telstra Mobile services are available in post-paid and prepaid payment types, known as Telstra Pre-Paid (formerly communic8 Pre-Paid).[75]

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".[76] 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.[77]

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 based network in its place.

Telstra has 7400 Next G Base Stations.[78]

Mobile networks

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

Frequencies used on the Telstra Network
Frequency Protocol Class Notes
900 MHz GSM/EDGE 2G EDGE data capabilities are available on 100% of the GSM networks used
1800 MHz GSM/EDGE 2G Used in areas requiring extra capacity.
850 MHz UMTS/WCDMA/HSPA/HSPA+/DC-HSPA+ 3G Telstra Next G 3G network covering 99% of the Australian population
2100 MHz UMTS/WCDMA/HSPA/HSPA+/DC-HSPA+ 3G Telstra has been installing UMTS 2100mhz in areas where its 850mhz frequency is over crowded. It will not be available in all areas though.[79] This band was originally used for the 3GIS network in 50/50 partnership with Vodafone Hutchison Australia, and covered capital cities (Telstra ended this partnership on 31 August 2012.)
1800 MHz LTE 4G LTE roll-out in major capital cities and a significant range of regional centres has been completed, delivering coverage within 5 km of CBDs and major capital city airports. Most previously existing GSM1800 Channels have been shut down in the new LTE coverage areas.

February 2011: Ericsson wins the LTE contract with Telstra. The LTE network is being deployed in capital city CBDs and select regional centres throughout 2011. It will operate at 1800Mhz and integrate with a HSPA+ service at 850 MHz. A dual mode (LTE/HSPA+) mobile broadband device has been developed for the network.[80]

January 2012: Initial major LTE rollout complete. Incremental rollout continues, widening the coverage in capital cities and introducing new LTE coverage to regional centres.

July 2012: Telstra commences retailing a pocket-sized battery powered 4G WiFi router (ZTE MF91) for prepaid data customers, locked to Telstra, complementing its range of 4G-capable devices. Apart from the ZTE MF91, the Telstra 4G hardware range now comprises two dual mode (4G/3G) voice-capable handsets by HTC and ZTE (available for purchase outright or on a post-paid plan), a Sierra USB wireless modem (outright or post-paid plan), a ZTE USB wireless modem (prepaid, locked to Telstra) and a Sierra 4G Wifi battery powered pocket-sized router (outright or post-paid plan). Telstra is reported to now be operating LTE facilities from more than 1,000 transmission sites.

Internet

Telstra provides internet subscription and various internet services (such as IP networking, email, servers and network hosting).

  • Telstra Internet Direct provides internet subscription, services (including IP networking and email) to businesses, government and enterprise. Telstra Internet Direct is mainly focused on business customers and does not sell its products to residential customers unless they have an ABN (Australian Business Number)
  • Telstra BigPond provides internet subscription (Cable, ADSL, Wireless and Dialup) for residential customers as well as small business. BigPond is Australia's largest internet service provider with over two million subscribers.
  • Telstra Wholesale resells or leases telecommunications products (including dial-in ports, exchange space, and ADSL DSLAM ports) to other companies for the purpose of resale at a fee.

Telstra Internet

Telstra Internet is the national Internet backbone for Telstra within Australia.[citation needed] Telstra sells direct (business-grade) connections to the backbone under the Telstra Internet Direct name and consumer dialup, ADSL, cable modem and satellite connections under the BigPond brand name.

The Internet was built in Australia by AARNet, then an activity of the Australian Vice-Chancellors' Committee (AVCC). Telstra acquired AARNet1 from the AVCC as a going concern in 1995[81] and renamed it to Telstra Internet. Telstra Internet buys long-haul capacity and international transit from REACH Global Services.

Wholesale

Telstra logo on the side of an exchange building. Telstra has its DSLAMs for customer internet services housed inside exchanges.

Telstra Wholesale[82] provides products such as Data, Mobile, Voice, and other Facilities (including Co-location and Duct Access)[83] to other companies and organisations for re-sale.[84] Telstra Wholesale also provides operational support for its customers,[85] and facilities for international customers such as International Data Transport and IP Transport.[86]

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.[87] Telstra Wholesale has a comprehensive network of ADSL DSLAMs (the largest in Australia) and allows competitors access to each Telstra DSLAM at ADSL1 speeds.

BigPond

Main article: BigPond

Telstra owns and operates the largest cable internet network in Australia.[citation needed] Telstra Cable operates in selected cities and areas of Australia including (Melbourne, Brisbane, Canberra, Sydney, Perth, Adelaide and the Gold Coast), providing downstream speeds of up to 30 Mbit/s in selected areas. while Melbourne being the only capital city in Australia with speeds of 100 Mbit/s making it the fastest broadband speed in Australia and among the fastest in the world.[citation needed] The upgrade to 100 Mbit/s was complete in Melbourne by Christmas 2009, and launched the new DOCSIS 3.0 services on 1 December 2009 before the deadline. 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.[88] The existing customer base of BigPond Wireless is currently being migrated over to the Next G network, which offers higher speeds and greater coverage.

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."[89]

On 10 June 2008, it was announced that Telstra was in discussions with some wholesale customers in reference to wholesaling ADSL2+ services.[90]

In January 2009, Telstra was ranked top Australian ISP, in terms of performance, by Epitiro.[91]

In 2011, Telstra launched "Blurtl", a Facebook application that allows the user to leave audio messages on their Facebook walls.[92]

In April 2012, MOG announced a partnership with Telstra to bring MOG to Australia, the first region outside of the US to have access.[93] Telstra and MOG launched under the BigPond Music branding on 21 June 2012.[94]

Subscription television

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 50% of Foxtel in a joint venture with News Corporation whom owns the other 50%. Telstra also resell Foxtel's "Digital" 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.[95]

Directories and advertising (Sensis)

File:Sensis.png
Sensis logo

Sensis is Telstra's wholly owned advertising and directories arm. This subsidiary was originally known as National Directory Services (NDS), but subsequently renamed Pacific Access (since 1991), before changing its name to Sensis in August 2002.[96] Sensis publishes Australia's White Pages and Yellow Pages telephone directories, and in 2004 purchased the Trading Post, a classified advertising periodical. In 2008 management of the Trading Post was transferred to Telstra. In 2009 the printed Trading Post was shut down. Sensis also manages several websites including:

  • Yellow Pages Online: an online version of the print directory
  • White Pages Online: an online version of the print directory
  • Yellow Advertiser: dedicated online resources for Yellow advertisers
  • Sensis.com.au: an Australian search engine
  • WhereIs.com: online maps and street directories
  • CitySearch: city-based lifestyle and entertainment guide
  • GoStay: online accommodation booking
  • Home at Yellow: a home improvement website

Sensis is responsible for Telstra's telephone directory assistance call centres – including 1223 ("Telstra Directory Assistance"), 12456 ("Call Connect"), 1225 ("International Directories") and 1234 ("1234" information service).[97][citation needed]

In 2007, Sensis commissioned Amdocs to develop a customer interaction and database management system dubbed "iGen" to combine the existing GENESIS (also known as POST) system and the company's dozens of other internal customer and account systems into one interface. The new system would combine both Yellow Pages and White Pages directory information on one system.

The original cost of development and implementation was estimated at A$300 million which was funded by Telstra, but a twelve-month delay in deployment and lack of user acceptance testing almost doubled the original cost. "iGen" was eventually deployed to mass disapproval from employees who experienced extremely low performance and reduced capabilities from the new system.[98] In November 2009, the entire White Pages directory product reverted to the legacy system, GENESIS, after realisation by Sensis management that iGen was incapable of delivering expected performance.

In 2010, Sensis CEO Bruce Akhurst announced that the Yellow Pages had been switched over to iGen. In a blog posting he stated that they were ahead of the biggest system challenges and that iGen was 'stable' and 'operating effectively'.[99]

Sensis announced job cuts in February 2013 of around 700 roles nationally. Despite digital growth of up to 42 per cent and record half year profits of Telstra ($1.6 billion), the decision to outsource roles to India was described as necessary for restructuring purposes in the digital age.[100]

Shops

Telstra Store in the Sturt Mall in Wagga Wagga

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.[101]

Telstra launched a range of T[life] concept stores in the early 2000s.[102] The T[life] model provided live demonstration handsets, in-store technical support and repairs, teleconferencing, workshops and other concept services.[citation needed]

This rollout has been abandoned in favour of a more unified approach, with all stores being re-branded as Telstra Stores and being equipped with various facilities regardless of ownership and more finely tuned to local requirements.[citation needed]

The carrier opened the world's first Android store, called "Androidland", on Bourke Street, Melbourne, Australia, in December 2011.[103]

Market position

Since the Australian telecommunications industry was deregulated in the early 1990s, Telstra has managed to remain the largest provider of telecommunications services[104] despite the emergence of its rival, Optus. A Harvard Business Review article authored by a consultant to Telstra on this topic, reported that a strategy of offering lower rates on some routes and at certain times of day, even though its prices, on average, were higher than its rival's, was more likely to prevent consumers from switching such that ultimately, Telstra was able to retain several points of market share it otherwise would have lost.[105]

In early 2011, Telstra successfully extended its market share lead by discounting its mobile phone products.[106]

Management

In May 2009, Solomon Trujillo stood down as Chief Executive Officer to return to the United States (US), and was replaced by David Thodey.[107]

Year appointed CEO
1992 W. Frank Blount
1999 Dr Zygmunt (Ziggy) Edward Switkowski
2005 Solomon Trujillo
2009 David Thodey[108]

On 4 December 2013, Telstra became the first Australian company to included flexibility arrangements, such as supporting family-friendly practices, in its new advertised positions.[109]

International holdings

Year Name Type of ownership Comments
1992 Europe Telstra Europe 100% Telstra has been operating in Europe since 1992. Telstra Europe has a customer base of over 7000 customers, who buy data, voice and complex managed network and hosting services.[110]
2003 Hong Kong Reach Asian undersea cable 50% venture, with Pacific Century Cyberworks This partnership was created during the late 1990s telecommunications boom – it struggled and had its book value downgraded to zero by Telstra in February 2003. Reach's debt was renegotiated in 2004 and it was restructured to operate mainly as a vehicle for its owners' international requirements.
2005 Australia Adstream Australia 58% In early 2006 Telstra offers $20 million cash to increase its total stake from 33 to 58 per cent.[111]
2006 China SouFun 51% SouFun was integrated into the Sensis business, providing Telstra with an entry point into China. It was sold to SouFun Holdings in late 2010.[112]
2008 United States Telstra Endeavour 100% Communications cable linking Sydney and Hawaii. The cable went live in October 2008,[113] with a capacity of 1.28 terabits per second in the future (currently at 80 gigabits per second.)
2008 China Norstar Media >50% Telstra acquired controlling stakes in the two businesses, Norstar Media and Autohome/PCPop, for an undisclosed amount.[114]
2008 China Autohome/PCPop >50% See above
2011 Australia iVision 100% Integrated telepresence video conferencing solutions
2011 India Telepresence Solutions Joint Venture with tata group Telstra expands global telepresence reach with partner Tata Communications[115]
2011 India Telstra Telecommunications Private Limited Joint venture with Microland Licence for long distance and ISP data serivces in Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai and Pune[116]
2011 Singapore Telstra Singapore 100% Facilities Based Operator (FBO) licence allowing voice and data networks, systems and facilities. Also enables Telstra to build the local backbone required to support its plans for new cable submarine capacity to Singapore.
2011 Japan Telstra Japan K.K. 100% Own and operate large scale telecoms circuits and facilities in multiple cities and prefectures in Japan, along with products and services delivered over those facilities and networks.

Sponsorship

Australia

Telstra and Nintendo Australia made a joint venture to establish Wireless Wi-Fi Hotspots in restaurants around Australia so Nintendo DS users could connect to the internet to view HTTP/HTTPS pages on Nintendo's Nintendo DS Browser and Nintendo DS games that were Nintendo WFC enabled.[117]

Sport

Telstra is a major sponsor of the V8 Supercars car racing championship through its BigPond brand and directly sponsors the Sydney Telstra 500 event, the final round of the series held at Sydney Olympic Park.[118]

In the past, Telstra had naming rights to the Telstra Dome in Melbourne, but lost these rights to Etihad Airways, the national airline of the United Arab Emirates, on 1 March 2009.[119] 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.[120]

In addition to its professional sponsorship Telstra supports community and sporting groups through its Telstra Foundation.

New Zealand

Telstra also has the naming rights (under TelstraClear) for the TelstraClear Pacific events centre in Manukau City, New Zealand.[121][122]

Awards

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.[123] Notable past winners include Vaxine,[124] APS Plastics,[125] and eWAY.[126]

WotNext

Telstra, in January 2007, launched WotNext, a video-publishing website. The website let users upload video content, which was sold to mobile users for A$1 - the money was divided between the uploader and Telstra, each receiving 50 per cent.[127] The website was shut down in December 2007 after a media backlash over uploaded semi-pornographic videos.[citation needed]

References

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