Australia - National Broadband Network - Telstra

Synopsis

Soon after the Australian government announced the national broadband network in 2009 Telstra accepted that changes were inevitable, and it reacted swiftly. A new management team was appointed and the company announced its support for the NBN and its willingness to work with the government. The company also put its weight behind the trans-sector concept that will be the avenue to generating new revenue. In particular they have since shown increased interest in cloud computing.

In 2012 Telstra finalised an $11 billion contract with the government, which saw the company making infrastructure assets available to NBN Co and agreeing to switch off its copper network after the NBN has become available. It also entered the NBN retail market.

These massive changes propelled the company into a transformation process which saw it competing aggressively with its rivals, particularly in the mobile market. It has ramped up its customer service and introduced innovative new services. So far so good, as the company has become one of the most financially successful telcos among the developed economies.

Telstra’s position in the NBN is pivotal and the company’s dominance has increased since the Coalition Government’s plans require a greater participation from the company. These contracts negotiations were finalised in late 2014 and ratified by the ACCC in mid 2015.

Key developments:

NBN, structural separation, sector transformation, e-health

Companies mentioned:

NBN Co, Telstra, FOXTEL, Sensis.