As it lays bets on new technologies and acquisitions, the $68 billion telco is struggling to explain where the next wave of growth is likely to come from. While there’s no shortage of ideas or new businesses opportunities for Telstra to pursue, the unanswered question remains: will any succeed? If you ask Telstra chief executive David Thodey, he will answer with an unequivocal yes.
This week Telstra announced a major investment into the development of its health business, but is our biggest telco facing an uphill battle to make money out of this new venture? The latest addition to its portfolio of health services will come through a collaboration with Swiss company Medgate. Medgate currently offers Swiss patients the ability to consult with a doctor via telephone or computer and to order prescriptions online for home delivery.
NBN Co expects to have reached a deal to resign its $11.2 billion definitive agreements with Telstra by the end of the year, with the network builder’s chief executive today revealing the two had reached material agreement on the new contract. The Coalition Government had originally promised to have the historic renegotiation complete by mid-2014, but Telstra boss David Thodey recently said he expected the discussions to continue into 2015.
Telstra has unveiled details of its strategy to take advantage of Asia’s rapidly growing appetite for cloud and managed network services. The carrier today revealed it has heavily reorganised its network application services and enterprise divisions to point the business squarely into Asia. It also flagged potential hundreds of millions of dollars in capital spend to establish its presence offshore.
Telstra has been forced to review its handling of complaints about faulty mobile phones after an investigtion by the consumer watchdog uncovered 400 instances where customers may have been misled. The Australian Competition and Consumer Commission (ACCC) today said that following an investigation into how Telstra staff responded to complaints about faulty mobile phones, it had found customers may have been misled about their consumer guarantee rights, specifically that they weren’t entitled to a refund, replacement or repair.
Telstra today cut the ribbon on its revamped Sydney headquarters, part of a $112 million refurbishment effort to remodel the centre into a “state-of-the-art customer technology hub”. Telstra’s 400 George St headquarters has been redesigned around the customer in order to create a “digitally intimate experience”, CEO David Thodey said, and now boasts a ‘discovery store’ and collaborative ground floor reception area for staff and Telstra users.
Telstra will acquire Brisbane-based network solutions and information security specialist Bridge Point as part of an ongoing effort to bolster its network applications and services business. The 14 year-old Telstra partner counts 75 employees on its books and services government and enterprise clients including Queensland Health, Transport and Education, as well as Suncorp, Virgin Australia, Tatts Group and BP, according to its website.
Indian startup AdNear, which provides location-based intelligence for advertising, has just raised US$19 million in series B funding. What is significant is that a leading Japanese venture capital firm, Global Brain, and the VC arm of Australian telecom giant Telstra have come on board, joining existing investors Sequoia Capital and Canaan Partners in this round. AdNear, which started in Bangalore but is now headquartered in Singapore, has taken its unique adtech model across Southeast Asia, Australia, and most recently, Japan.
Telstra will cease development of 900 Mhz + 1800 Mhz for its LTE-Advanced network to instead focus on pairing 1800 Mhz with its newly acquired 700 Mhz spectrum. Telstra’s first round of trials for LTE carrier aggregation technology – in which two frequencies are used at the same time to theoretically double upload and download speeds – in July last year combined 900 MHz and 1800 Mhz spectrum on the Sunshine Coast.
Telstra has expanded its investment spree into the digital signatures space, sinking an undisclosed sum into San Francisco-based transaction management firm DocuSign. DocuSign specialises in encrypted document exchange technologies and digital signature document authentication, and boasts 40 million users globally.
Tech stocks are always interesting to follow and in some cases can be can be quite profitable for investors. Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM) are up 45% and 201% respectively over the last two years. However, that isn’t the end of the story. Here are three reasons why you should like what both companies have planned in the near future. If you don’t have a tech stock in your portfolio already, one of them may be a good addition.
Telstra has unveiled a $1.3 billion investment plan to expand coverage of its LTE (4G) network to 90 percent of the population and to exploit its recently acquired 700MHz spectrum by enabling compatible devices to use 700MHz and 1800MHz frequencies simultaneously to boost bandwidth. Services will be turned on in parts of Sydney, Adelaide, Darwin, Bundaberg, Yamba and Sarina in the week beginning 15 September.
Telstra received just under 85,000 requests for customer information from government agencies in its 2014 financial year, the telco revealed in its first full year transparency report released today. Telstra had previously reported receiving 40,644 requests for information from law enforcement agencies, regulatory bodies and emergency services organisations in the six months to December 2013.
Waste management company SITA has decommissioned its Sydney data centre, migrating all of its applications to Telstra in a painless shift that took just a weekend. SITA had built a new internal data centre in 2010 prior to the appointment of Michael Salas as CIO in late 2011. Salas, a former executive at Perpetual and Ticketek, has spent the intervening years moving staff off “the plumbing” in order to focus on the delivery of business applications.
Telstra will add Sydney and Adelaide to its trial of 4G services on new blocks of 700MHz spectrum in mid September, ahead of the formal commencement of access licenses in early 2015. The telco kicked off commercial trials of 4G services using the 2x20MHz of 700MHz spectrum it purchased in the Government’s 2013 digital dividend auction across Perth, Fremantle, Esperance, Mildura, Mt Isa and Griffith in June this year, after being granted an early access license to the spectrum.
The Australian government buying back the copper network from Telstra almost 20 years after selling it to the public is a way for Telstra to move away from fixed line services, according to CEO David Thodey. Under the framework for a revise agreement between NBN Co and Telstra, the former government-owned incumbent telecommunications company will progressively hand over its copper and HFC network assets to NBN Co that will be used as part of a “multi-technology mix” model of the NBN that includes HFC and fibre to the node, in addition to the existing fibre to the premises, fixed wireless and satellite services.
Telstra announced today the launch of its global cloud-based unified communications service, the latest offering in its long-term partnership with networking giant Cisco. The service will be delivered through Telstra’s cloud infrastructure, which extends to seven locations around the world, including the United States, Europe, and the Asia Pacific region. Telstra’s global solution, launched in partnership with Cisco last year, is now available across four continents in 25 countries, and is delivered over Telstra’s worldwide network extending to more than 2,000 point of presence according to Telstra global enterprise and services director of marketing Nathan Bell.
The change in business for Telstra Corporation Ltd (OTCPK:TLSYY) from what originally was Australia’s public telephone company to an increasingly international telecom and enterprise service company can be seen very easily within its latest 2014 full year results. As the market leader in Australian home phone, broadband and mobile phone service, the $64.3 billion company is known for its solid dividend payment, which currently has a yield of 5.1%.
Telstra’s Network Applications & Services (NAS) business grew by 27.8 percent in the 2014 financial year, totalling $1.9 billion in revenue. While the NAS unit only accounts for eight percent of overall products sales revenue, the carrier’s IT services business is growing fast – the unit has added $635 million in revenue since 2012. That growth is coming from three areas: managed network services are the big driver, increasing by 55.7 percent in the 2014 financial year. A key win was a Department of Defence contract during the year.
Telstra will spend US$270 million (A$291 million) to boost its stake in Silicon Valley-based video streaming and analytics company Ooyala from 23 percent to 98 percent, following an incremental investment of US$61 million over the last two years. Telstra will incorporate Ooyala – which was founded in 2007 – into its global applications and platforms group, subject to customary closing conditions.