History
Australia's telecommunications services were originally controlled by the Postmaster-General's Department (PMG), 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, 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. Telstra has faced competition since the early 1990s fromOverseas Telecommunications Commission
The Overseas Telecommunications Commission (OTC) was established by an Act of Parliament in August 1946. It inherited facilities and resources from 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 Telecom as the Australian and Overseas Telecommunications Corporation (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra for international business in 1993 and domestic business in 1995.Privatisation
Beginning in 1997 and finalising in 2011, theNational 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. As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008. 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. 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. NBN Co Limited signed a definitive agreement with Telstra on , estimated to be worth post-tax net present value, building upon the signing of a financial heads of agreement a year beforehand. Telstra agreed to "disconnect" 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. Telstra remains the owner of its networks. On 18 October 2011, Telstra shareholders overwhelmingly approved the deal. 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."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. In 2014, Telstra was named "most respected company" by the Australian Financial Review newspaper.Market share recovery
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.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". In August 2011, Telstra Digital announced expansion of customer service into social media with 24/7 coverage. By November 2012, Telstra claimed 140,000 live chats for the month and a growth rate of this service of 600% p.a. In October 2013, Telstra announced that it had grown its Live Chat workforce to 600 and its social media workforce to 30. 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.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. Gerd reported to Karsten Wildberger who was Group Managing Director of Telstra Consumer, and was ultimately appointed to be the new minister for digitization of Germany in 2025. 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. In July 2011, Telstra Digital launched "CrowdSupport", an online forum to crowd source customer service. As of July 2017, Telstra's "CrowdSupport" had 463,000 posts. It was also cited as an example of "scaling at the edge" by Deloitte's Centre for the Edge. In September 2011, Telstra Digital launched a new account services portal to help achieve its goal of managing 35% of Telstra's transactions. In October 2011, Telstra Digital announced a new mobile smartphone optimised version of its website. In November 2011, Telstra Digital launched an iPhone app on a trial basis as well as a new online mobile phone shop. In July 2012, Telstra Digital launched smartphone and Facebook apps for customers to manage their Telstra accounts and in November 2012, Telstra claimed that over 700,000 customers had downloaded those apps. In August 2013, Telstra revealed that the apps reached 2.5 million downloads. 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. 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. 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". In a 2015 Deloitte report, Telstra disclosed that its "CrowdSupport" service community had generated 200,000 pieces of user-generated content. In August 2016, Telstra disclosed that "more than 60%" of visitors to "CrowdSupport" manage to find an answer on the community. In February 2013, Telstra introduced the ability to pay its bills via PayPal. And in June 2013, Telstra launched a new website, including the ability for customers to link their online accounts to their Facebook identity. 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. Telstra published aRetail store network
Share price development
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".Telstra Sale – Parliament of AustraliaSale of Sensis
In January 2014, Telstra announced its intention to sell 70% of Sensis toNew health business unit
In September 2013, Telstra launched a new health business unit – Telstra Health and hired Shane Solomon as the head. In September 2016, Telstra Health was awarded a $220m government contract amidst claims of "lack of transparency". Shane Solomon left Telstra in Nov 2016.= Telstra Health Acquisitions
=National Broadband Network (NBN)
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 Hybrid fiber-coaxial networks to A.C.N. 86 136 533 741 (NBN Co) Limited.Andrew Penn era (2015–2022)
On 19 February 2015, Telstra announced that CEO David Thodey would retire on 1 May 2015 and be replaced by successor Andy Penn. Penn's era was marked by the very difficult transition to the NBN, a government policy decision which had significant implications for Telstra. Penn indicated new focus on growth in the core business with a pulling back from international markets, including the discontinuation of a joint venture to build a mobile phone network in the Philippines. 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. In 2016, Telstra suffered a series of network outages for which the company apologised. In December of that year, Telstra announced the appointment of Robyn Denholm as its new COO, following the departure of Kate McKenzie who left after the network outages. In December, Telstra announced the hire of a new CTO to replace the predecessor who left amongst allegations of CV fraud. 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. Penn announced a $3bn investment program to strength its networks and as a platform for future digital investments. In February 2017, Telstra announced that revenue had dropped 3.5%, Net Profit After Tax had dropped by over 14% due to the impact of the rollout of the NBN by the Australian Government. As a result, Telstra's share price dropped by 4.5% on the same day. In August 2017, Telstra announced that it would cut its dividend in response to the financial implications of the NBN and to fund its network investments, leading to a drop in share price by over 10% in a single day to reach a 5-year low.T22 strategy
In June 2018, Telstra announced its Telstra2022 strategy designed to face into headwinds from the NBN rollout and return the business to growth. Composed of four pillars, the strategy was designed to remove $1 billion of operating costs from the business, simplifying its overall structure and leading to six key outcomes: improve customer experiences, simplify its products and operating model, extend network superiority and 5G leadership, achieve global high performance in employee engagement, reduce net productivity costs, and attain a return on capital investment post the NBN rollout. 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" (T22) plan.= InfraCo
= Created on 1 July 2018, Telstra InfraCo would serve as the infrastructure business, owning an estimated $11 billion AUD in assets made up of data centres, non-mobiles related domestic fibre, copper, HFC, subsea cables, exchanges, poles, ducts, and pipes. InfraCo opened its dark fibre network across six Australian state capitals in February 2021. Telstra said the dark fibre network would open up a wealth of capabilities and control for its targeted audience of network operates and service providers such as global carriers, data centre operators, internet service producers and over the top providers according to Infrastructure Chief Ross Lambi.= Retail store strategy
= In February 2021, Telstra announced plans to take back full ownership of its 337 retail stores. At the time of the announcement Telstra owned and operated 67 of its stores, Vita Group owned and operated 104 stores, and the remaining 166 were operated by individual licensees. The process of transitioning stores back to Telstra ownership took around 12 to 18 months to complete. As part of the T22 program Telstra also brought its call centres back on shore. Ultimately the T22 strategy proved to be very successful with a significant improvement in customer metrics, employee engagement, a return to profitable growth supported by a $2.7 bn reduction in annualised costs. Telstra's share price increased more than 50% from a low in 2018 of $2.63 to more than $4 in 2022. On 14 July 2022, Telstra finalised their acquisition of Digicel Pacific, a telecommunications company operating in Papua New Guinea, Vanuatu, Fiji, Samoa, Tonga and Nauru.Vicki Brady era (2022–present)
On 30 March 2022, Telstra announced that Vicki Brady would become the new chief executive officer effective 1 September 2022. In December 2023, Telstra acquired Versent, a provider of cloud transformation and security products and services, for $267.5 million. On 21 May 2024, Brady announced plans to lay off 2,800 employees by the end of 2024. Most of these roles would be in the B2B Telstra Enterprise division, with 377 roles in consultancy for redundancy. Brady said the changes were part of the company's transition towards AI technology. Communication Workers Union national assistant secretary James Perkins criticised the lack of staff warning prior to the announcement. In December 2024, Telstra announced it would acquire Boost Mobile, an MVNO which operates on its mobile network.Products and services
Fixed-line and mobile telephony
Internet
Wholesale
Retail internet
As an=Cable internet
= *Cable – Telstra is Australia's largest provider of Cable Internet access, which covers parts of Australia's main cities (=ADSL internet
= *ADSL – Telstra 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 Telstra 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. 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". On 10 June 2008, it was announced that Telstra was in discussions with some wholesale customers in reference to wholesaling ADSL2+ services.=Mobile broadband
= * Mobile Broadband – Through their Next G network, Telstra provides the largest wireless network coverage in Australia, reaching 99% of the population. Download speeds on the 3G network range from 256 kbit/s to 3.5 Mbit/s in regional and interurban areas, and "up to" 21 Mbit/s in metropolitan and city areas. Download speeds on the 4G Network are "up to" 100 Mbit/s. The Telstra mobile network now has 4GX and 5G in all capital CBDs and selected suburban and regional areas and is progressively rolling out. In other coverage areas around Australia, Mobile devices that are capable will automatically switch to the fastest available 5G 4G or 3G. Typical download speeds in 4GX areas are 5 -300 Mbit/s with category 16 devices, 5–200 Mbit/s with category 11 devices, 5–150 Mbit/s with category 9 devices, 2–100 Mbit/s with category 6 devices, and 2–75 Mbit/s with category 4 devices. Telstra also provides wireless ' hot spots'.=Satellite internet
= * Satellite – Telstra provides satellite internet mainly for regional customers who are too far away from the exchange to get ADSL, and cannot get Cable. Satellite is delivered via 2 way Satellite with speeds ranging from 256 kbit/s down/64 kbit/s up to 800 kbit/s down/128 kbit/s up.=Dial-up internet
= * Dial-up – Telstra offered dialup internet from 1995 until early 2015. However they have now ceased selling the service, and existing retail and wholesale customers have been migrated off of Dial-up.Low-cost mobile and internet brand
In October 2013 Telstra launched "Belong", a low-cost mobile and internet service provider. As of February 2020, Belong has over 600,000 services made up of almost 340,000 mobile services and around 300,000 broadband internet services. Belong is Australia's first carbon neutral telecommunications provider certified by Climate Active, a partnership between the Australian Government and businesses that encourages voluntary action to reduce the impacts of climate change.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 providerEntertainment 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. Telstra and MOG launched under the BigPond Music branding on 21 June 2012,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 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. ITWire article on GameNow 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.GameNow to game on - demandThe Pond in ''Second Life''
Telstra BigPond owned and operated a number of virtual islands in the online game ''Payphones
In 2021, Telstra made its pay phones free * so that they can be used in emergencies ** for when mobile phones are out of service due fire, flood, storms, flat batteries, no nearby mobile tower, etc. * declining use would have meant that the cost of collection exceeded the revenue anyhow * for the benefit of people without aMobile networks
The following is a list of known active mobile networks used by Telstra: 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 1800 MHz and integrate with a HSPA+ service at 850 MHz. A dual mode (LTE/HSPA+) mobile broadband device has been developed for the network. 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 3,500 transmission sites. August 2013: Telstra demonstrates the world's first ever LTE- Advanced Carrier Aggregation network using the 900 MHz and 1800 MHz spectrum bands in the Sunshine Coast. April 2014: Telstra introduced a mobile broadband device fromNext G network
In 2005, Telstra announced a plan to upgrade its ageing networks and systems; which includes a new 3G network to replace the then current CDMA mobile network. The network was built between November 2005 and September 2006, and launched in October 2006. , Next G was the largest mobile network in Australia, providing greater coverage than other 3G providers in Australia and over three times greater than any 2G provider in Australia. In December 2008, the Next G Network was also the fastest mobile network in the World, delivering theoretical network speeds of up to 21 Mbit/s using features of HSPA+ and Dual-Carrier HSPA+. In February 2010, Telstra increased the speed up to 42 Mbit/s making the Next G Network once again the fastest mobile network in the world. On 26 September 2011, Telstra launched its 4G 1800 MHz LTE network, claiming typical download speeds of up to 40 Mbit/s. The network is used for BigPond's wireless broadband service and Telstra Mobile, which is Australia's largest mobile telephone service provider, in terms of both subscriptions and coverageNetwork design
It was built to replace Telstra's CDMA network which operated from 1999 until 28 April 2008. Telstra opted to use the 850 MHz band for Next G in preference to the more common 2100 MHz band, since it requires fewer base stations to provide coverage, providing a lower capital cost. This network was implemented under contract by Ericsson as part of a project internally dubbed "Project Jersey" and launched on 6 October 2006. HSPA technology was included in the network to provide Australia's first wide area wireless broadband network. The efficiency of the Next G network and its coverage has been challenged and scrutinised since its launch, requiring Telstra to go back to areas with average coverage, particularly rural towns to improve its coverage footprint. On 18 January 2008, Stephen Conroy, Minister for Communications, declined the proposal for Telstra to switch off its CDMA network on 28 January 2008, stating that whilst the Next G network provided coverage equal to or better than the CDMA network, the range of handsets available was not yet satisfactory. On 15 April 2008, the Minister gave approval to close the CDMA network after 28 April 2008. Telstra closed the network nationally during the early morning hours of 29 April 2008. While most wireless modems offered by Telstra allow peak download speeds of up to 7.2 Mbit/s, a modem by Sierra Wireless was announced in 2009 that supported increased throughput. The "USB 306" is marketed and sold by Telstra as the "Telstra Turbo 21 Modem", and was available in limited quantity in early 2009. By April, the "Turbo 21" was available to customers and offered peak download speeds of 21 Mbit/s, although actual speeds vary between 550 kbit/s and 8 Mbit/s. , Next G network HSUPA upgrades in selected regional and metropolitan areas, combined with software updates for the "Turbo 21" modem, will allow peak uplink speeds of up to 5.76 Mbit/s.4GX
On 1 January 2015, Telstra launched, what it calls "4GX": a 700 MHz based component of its mobile network claiming speeds of up to 75 Mbit/s with compatible devices. 4GX has been expanded up to a 5 x Carrier Aggregation LTE Advanced Pro network, with up to two gigabits of capacity in selected locations using 700, 1800, 2100 and 2600 MHz frequencies.Business Technology Services (BTS)
In January 2016, Telstra announced its acquisition of cloud service provider Kloud. This was followed closely by the acquisition of application development company Readify in July 2016.Market position
Since the Australian telecommunications industry was deregulated in the early 1990s, Telstra has managed to remain the largest provider of telecommunications services despite the emergence of rivalsAdvertising
The name "Telstra" is derived from "Telecom 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". In October 2011, Telstra launched a new brand identity and colour scheme. 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. In 2013, Telstra was assessed as Australia's third most valuable brand, after Woolworths and BHP Billiton. In 2016 Telstra became Australia's most valuable brand, which it maintained in 2017. 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. Notable past winners include Vaxine, APS Plastics, and eWAY. 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 atManagement
International holdings
Telstra has over 200 subsidiary businesses as of 30 June 2016. The full list can be found at their website. A list of major businesses that Telstra owns can be found here under:Controversies
Project Patrick
In 2001 Telstra launched a secretive bid to purchase Channel 9 from the Packer PBL Empire. It was driven by the Chairman Bob Mansfield, CEO Ziggy Switkowski and Group Managing Directors Ted Pretty. John Stamhope and others. The Howard Government intervened and stopped the purchase and the debacle was captured on ABC's Four Corners program the same year. Telstra employees which were part of the project team Brian Stapleton, John Loscoe. Pat Fuery, David Long, Gerard Devan and Mark Todd were disbanded and the project shelved.WotNext
In January 2007 Telstra launched WotNext, a video-publishing website that allowed users to upload videos. The video content was then sold to mobile users for A$1, which the uploader and Telstra split equally. The website was shut down in after a media backlash over uploaded semi-pornographic videos.2011 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 that resulted in approximately 60,300 Telstra customers' personal information being sent to other customers. The Australian Privacy Commissioner Timothy Pilgrim said that the OAIC investigation 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. The OAIC concluded that Telstra had taken steps to protect the personal information of its customers including privacy obligations in agreements with mailing houses, privacy impact assessments, and procedures to ensure staff handle personal information appropriately during mail campaigns. After becoming aware of the mailing list error, the commissioner determined that Telstra had acted "immediately" to prevent further breaches, notify customers, review its data security practices, and counselling staff involved the accidental data leak.Christchurch mosque shootings
On 20 March 2019, Telstra denied access to millions of Australians to the websites 4chan, 8chan, Zero Hedge, and Liveleak as a reaction to the Christchurch mosque shootings.Race relations
In May 2021, the2024 3G network shutdown
In March 2024, the planned shutdown of the 3G network in June raised concerns among those with limited access to 4G/ 5G networks or newer devices. A Hillston farmer voiced fears that losing 3G connectivity could disrupt communication with her family in other rural places, posing potential risks to their safety and well-being. As of November 4th 2024 the 3G Mobile Network has been fully decommissioned after 2 delays extended the closure date to October 28 2024.See also
* Telstra Business Awards * Internet television in Australia * Subscription television in AustraliaReferences
236External links
* {{Authority control Telecommunications companies of Australia Internet service providers of Australia Mobile phone companies of Australia Companies based in Melbourne Mass media companies established in 1975 Telecommunications companies established in 1975 Australian companies established in 1975 Australian brands Companies listed on the Australian Securities Exchange Companies in the S&P ASX 50 Former Commonwealth Government-owned companies of Australia Online content distribution Online music stores of Australia Video rental services Australian streaming companies Telecommunications monopolies