Telstra hurt by spiralling PSTN revenue

 

Low single digit decline in sales revenues now expected.

Telstra has labelled the decline in public switched telephony network (PSTN) its “immediate challenge” after recording a $222 million loss in the first half of 2010.
“We’re seeing an acceleration in the PSTN decline, not just in the past six months but in the past two months,” chief executive David Thodey said.

“We really do need to address this. The decline has been more severe and pronounced than anticipated.”

Thodey said that despite implementing “a number of initiatives” to turn the result around, these were unlikely to flow through to topline revenue growth, which would remain “under pressure”.

A “low single digit decline in reported sales revenues for the year” was now expected.

click to view full size image
David Thodey, speaking to media and analysts today in Sydney's CBD
Thodey blamed across the board declines in straight calling volumes as one reason for the decline in PSTN.

“The majority of that decline was in the local call category. Our customers are now making five less local calls to what they did a year ago. That’s quite a change,” Thodey said.

The number of homes without a fixed line also rose to 10 percent, although Thodey said this was in line with international experiences.

The telco reported some growth in mobile and broadband revenues but said that was “not offsetting that PSTN decline.

“That’s what we have to try and balance moving forward,” he said.

Telstra also reported continued “slowing” in the fixed broadband market. Thodey said that fixed line penetration was around 66 percent.

Telstra believed recent reductions in wireless broadband prices and new bundles were being well received by customers.

It also believed there was growth prospects in the smartphone, tablet and machine-to-machine markets.

Telstra was also excited about the availability of Android-based devices later this year.


Telstra hurt by spiralling PSTN revenue
 
 
 
Top Stories
IBM denies plans to cut 112k jobs
But admits to further restructuring.
 
ATO investigates 25 tech giants in tax hunt
Prepared to take tax evaders to court.
 
Immigration, Customs restructure IT leadership
Customs CIO promoted into transformation role.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Franchisees, here's something you should know about
Jan 23, 2015
You need to know the Code if you are a franchisee or franchisor as the penalties are significant.
Xero users rejoice! Quoting has finally arrived
Jan 23, 2015
It has taken years, but Xero has at last added integrated quoting to its online accounting software.
You can now get a no-contract wi-fi tablet from Telstra
Jan 17, 2015
Telstra has began selling wi-fi tablets out of contract without paying extra for cellular ...
Get your business ready for 2015: mobile payments
Jan 2, 2015
These handy apps from MYOB, Xero and others can reduce your administrative load and improve ...
Xero prepares for key feature coming in 2015
Dec 19, 2014
Xero users will be able to track how their business is comparing to other Xero users.
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  36%
 
Your insurance company
  5%
 
A technology company (Google, Facebook et al)
  9%
 
Your telco, ISP or utility
  8%
 
A retailer (Coles, Woolworths et al)
  4%
 
A Federal Government agency (ATO, Centrelink etc)
  18%
 
An Australian law enforcement agency (AFP, ASIO et al)
  14%
 
A State Government agency (Health dept, etc)
  7%
TOTAL VOTES: 2965

Vote
Do you support the abolition of the Office of the Information Commissioner?

   |   View results
I support shutting down the OAIC.
  27%
 
I DON'T support shutting the OAIC.
  73%
TOTAL VOTES: 936

Vote