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 Telstra Corporate Centre in Melbourne | |
| Telstra | |
| Formerly | List
|
| Company type | Public |
| |
| Industry | Telecommunications |
| Founded | 1 July 1975[1] |
| Headquarters | Telstra Corporate Centre Melbourne, Australia |
Area served | Australia Worldwide (selected products) |
Key people | Vicki Brady (CEO) Michael Ackland (CFO) John Mullen (Chairman) |
| Products | Fixed line and mobile telephony, Internet, data services, network services, and pay TV |
| Brands | Belong |
| Revenue |  A$23.25 billion (2023) |
| A$3.392 billion (2023) | |
| A$2.051 billion (2023) | |
| Total assets | A$45.03 billion (2023) |
| Total equity |  A$15.41 billion (2023) |
Number of employees | c. 31,000 (2023) |
| Subsidiaries | 150 subsidiaries Foxtel (35%) Amplitel (51%) |
| ASNs | |
| Website | telstra |
| Footnotes / references Financials as of 30 June 2023[update][2] | |
Telstra Group Limited is an Australian telecommunications company that builds and operates telecommunications networks and markets related products and services. It is a member of the S&P/ASX 20 and Australia's largest telecommunications company by market share.[3]
Telstra has a long history in Australia, originating together with Australia Post as the Postmaster-General's Department upon federation in 1901. Telstra had transitioned from a state-owned enterprise to a fully privatised company by 2006.[4]
History
Australia's telecommunications services were originally controlled by the Postmaster-General's Department (PMG),[5] 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, following an unsuccessful attempt to register the trademark "Telecom Australia".
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.[6]
Overseas Telecommunications Commission
The Overseas Telecommunications Commission (OTC) was established by an Act of Parliament in August 1946.[7] 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.[8]
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.[5]
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.[5][9] 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.[9] 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%.[10] 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.[11] In 2009, the Future Fund sold off another $2.4 billion worth of shares, reducing the government's stake in Telstra to 10.9%.[12] In August 2011, under Labor's Gillard government, the Future Fund sold its remaining "above market weight" Telstra shares, reducing its holding to 0.8% of the shares, effectively completing Telstra's privatisation.[13]
With more than one million shareholders, Telstra is currently the most widely held ASX-listed company.[14]
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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.[15][16]
As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008.[17] 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.[18] 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.[19]
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,[20] building upon the signing of a financial heads of agreement a year beforehand.[21] Telstra agreed to "disconnect"[22] 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.[20] Telstra remains the owner of its networks.[23] On 18 October 2011, Telstra shareholders overwhelmingly approved the deal.[24]
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."[25]
David Thodey era (2010–2015)
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.[26]
In 2014, Telstra was named "most respected company" by the Australian Financial Review newspaper.[27]
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.[28]
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".[29] In August 2011, Telstra Digital announced expansion of customer service into social media with 24/7 coverage.[30] By November 2012, Telstra claimed 140,000 live chats for the month and a growth rate of this service of 600% p.a.[31] In October 2013, Telstra announced that it had grown its Live Chat workforce to 600 and its social media workforce to 30.[32] Customer Service became a pillar of the corporation’s social responsibility ethos according to Telstra’s head of social services Gerard Devan and the Telstra foundation.
The following table shows total complaints handled by the Telecommunications Industry Ombudsman (TIO) 2010–2015, and of those, the ones made against Telstra.
| Year | Total complaints | Complaints about Telstra | Percentage of all complaints | Source |
|---|---|---|---|---|
| 2010 | 167,772 | 78,611 | 47% | [33] |
| 2011 | 197,682 | 78,949 | 40% | [34] |
| 2012 | 193,702 | 69,991 | 36% | [35] |
| 2013 | 158,652 | 57,298 | 36% | [36] |
| 2014 | 138,946 | 58,009 | 42% | [37] |
| 2015 | 124,417 | 55,529 | 45% | [38] |
Telstra Digital
In February 2011, Telstra announced the formation of Telstra Digital under the leadership of Gerd Schenkel who was hired from National Australia Bank/UBank.[39][40][41] 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.[42] In July 2011, Telstra Digital launched "CrowdSupport", an online forum to crowd source customer service.[43] As of July 2017, Telstra's "CrowdSupport" had 463,000 posts.[44] It was also cited as an example of "scaling at the edge" by Deloitte's Centre for the Edge.[45]
In September 2011, Telstra Digital launched a new account services portal to help achieve its goal of managing 35% of Telstra's transactions.[46] In October 2011, Telstra Digital announced a new mobile smartphone optimised version of its website.[47] In November 2011, Telstra Digital launched an iPhone app on a trial basis[48] as well as a new online mobile phone shop.[49] In July 2012, Telstra Digital launched smartphone and Facebook apps for customers to manage their Telstra accounts[50] and in November 2012, Telstra claimed that over 700,000 customers had downloaded those apps.[51][non-primary source needed][non-primary source needed] In August 2013, Telstra revealed that the apps reached 2.5 million downloads.[52]
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.[53] 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 centre staff.[54]
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".[55] In a 2015 Deloitte report, Telstra disclosed that its "CrowdSupport" service community had generated 200,000 pieces of user-generated content.[56] In August 2016, Telstra disclosed that "more than 60%" of visitors to "CrowdSupport" manage to find an answer on the community.[57]
In February 2013, Telstra introduced the ability to pay its bills via PayPal.[58] And in June 2013, Telstra launched a new website, including the ability for customers to link their online accounts to their Facebook identity.[59][60]
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.[61] Telstra published a white paper sharing some key metrics of its digital program:[62]
| Metric | 2011 | 2013 | 2015 | June 2015 | June 2016 | August 2016 |
|---|---|---|---|---|---|---|
| Digital service transactions share | 26% | 44% | 50% | 52%[63] | 56%[63] | |
| Digital customer contacts per month | 10m | 23m | 33m (monthly average) | Not disclosed | 48m (grossed up from weekly)[64] | |
| MyAccount users | 0.5m | 2.6m | Not disclosed | Not disclosed | 2.5m[64] | |
| Regular 24x7 mobile app users | 0.0m | Not disclosed | 2.1m | 2.3m[63] | 2.6m[64] | 2.9m[57] |
| Digital payments transaction share | Not disclosed | Not disclosed | 75% | |||
| Digital prepaid recharge share | Not disclosed | Not disclosed | 50% | |||
| Monthly live chat sessions | Not disclosed | Not disclosed | Not disclosed | 350,000[63] |
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.[65][66]
In June 2014, Telstra disclosed that it had 3 million customers on "electronic billing" saving it $3 million per month in costs.[67] Telstra also mentioned that live chat accounted for 10% of total contact centre activity.[68]
In December 2015, Telstra Digital launched customer service on Periscope.[69]
In October 2016, the executive director of Telstra Digital Gerd Schenkel left Telstra[70] to become CEO of a fintech company.[71]
Retail store network
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Telstra owns and operates a series of retail stores known as Telstra Stores. Some are directly owned and operated by Telstra and some are operated by licensees.[72]
As of May 2016, Telstra has a total of 360 retail stores across Australia.[73] 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.[74]
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.[39][75]
The carrier opened the world's first Android store, called "Androidland", on Bourke Street, Melbourne, Australia, in December 2011.[76]
These developments built on Telstra's T concept stores it had launched in the early 2000s.[77]
New brand
In October 2011, Telstra launched a new brand identity and colour scheme.[78] 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.[79] In 2013, Telstra was assessed as Australia's third most valuable brand, after Woolworths and BHP Billiton.[80] In 2016 Telstra became Australia's most valuable brand, which it maintained in 2017.[81]
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.[82] Notable past winners include Vaxine,[83] APS Plastics,[84] and eWAY.[85] Telstra also set up a social services CEO round table under Gerard Devan which acted as a "Think Tank" to the sector.
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.[86] The sport ended this deal at the conclusion of the 2012 season.[87]
Telstra had naming rights to the Docklands Stadium in Melbourne from 2002 until 2009.[88] 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 Formula One season, and the Rally Australia 2006 Championships.[89]
Telstra also had the naming rights (under TelstraClear) for the TelstraClear Pacific events centre in Manukau City, New Zealand.[90][91]
In September 2021 Telstra solutions and Telstra Purple announced a partnership with eVTOL racing series Airspeeder. The deal centred around providing a service to transmit terabytes of data for vehicle to vehicle and vehicle to infrastructure communications for the EXA series. This deal incorporated on-vehicle branding for Telstra.[92][93]
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".[94] 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.[94] In November 2006, the government sold a third tranche of its shares, "T3", at $3.60 per share.[95]
Since its privatisation, Telstra shares have hit a low of just over $2.50 per share in late 2010.[96] Since then, Telstra shares have risen to $5 per share in December 2013[96] and $6 per share in December 2014.[97] On 17 May 2019 the shares closed on the ASX at $3.56 up from a twelve-month low of $2.547 per share[98]
In February 2014, Telstra raised its dividend from 14c to 14.5c per share.[99]
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.[100]
Sale of Sensis
In January 2014, Telstra announced its intention to sell 70% of Sensis to Platinum Equity for $454 million.[101] 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".[101]
In February 2014, Telstra was reportedly seeking to reduce Sensis employment by 400 to 1,000 positions.[102][103]
New health business unit
In September 2013, Telstra launched a new health business unit – Telstra Health and hired Shane Solomon as the head.[104]
In September 2016, Telstra Health was awarded a $220m government contract amidst claims of "lack of transparency".[105]
Shane Solomon left Telstra in Nov 2016.[106]