Telstra, Australian-based Telecommunications Company is currently facing the toughest period for their business.
After a series of unchanged revenue rate, Telstra is currently experiencing a revenue downfall. Due to NBN’s rollout and the growing competition, the telecommunication giant had a $3.56 billion loss or a drop of 8.4 percent on their annual profit.
NBN, a government-owned wholesale network has greatly affected Telstra’s financial records. After the emergence of NBN, the Telco giant has not seen any changes in their revenue for almost six months- until June of the present year. In total, their revenue has remained for a total of $26 billion. A Telstra representative has stated that a problem with NBN’s wholesale prices has been the main reason for their own problem.
Having recorded consistent mobile revenue growth of 0.4 percent and a fixed line revenue fall of 9.2 percent, the company does not have enough to record. The occurrence was also the main reason why their annual revenue recording had crashed, comparing it from their previous annual report.
Because of past events, the telecommunications company has decided to think of a new strategy to get past this problem while managing to stay on top of the competition. When you say strategy, it means decreasing the number of workforces. While it seems like a good strategy for the company, many people will continue to suffer the consequence. As it was mentioned not only that they have NBN rollout to think of but some of their competitors managed to challenged them- causing the company to create such a strategy.
Nonetheless, despite what the company’s going through, they still managed to grow its network from 770,000 to 1.9 million- from that, hopefully, the company will have a fresh start.