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Company Brief
Telstra

by Faulkner Staff

Copyright 2022, Faulkner Information Services. All
Rights Reserved.

Docid: 00016092

Publication Date: 2211

Report Type: VENDOR

Preview

Formed in 1992 by the merger of Telecom Australia and Overseas
Telecommunications Corporation Limited in order to provide universal phone
service to the Australian continent, Telstra is Australia’s largest
telecommunications company in both market capitalization and market share,
offering a full range of products and services including voice, data,
Internet, and wireless. In addition to its operations in Australia and New
Zealand, the company has a longstanding international business with a
focus on the Asia-Pacific region but also maintains a presence in Europe,
the Middle East, and the Americas.

Report Contents:

• Fast Facts
• History
• Key Executives
• Major Products
• Major Competitors
• Recent Activity

Fast Facts

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Name: Telstra Corporation Limited
Headquarters
242 Exhibition St.
Melbourne, Victoria 3000
Australia
Phone: 61-1300-88-66-77
Fax: 61-2-9287-0303
Web: https://www.telstra.com.au/
Type of Vendor: Telecommunications carrier
Founded: 1992
Service Areas: Australia, New Zealand, and Asia-Pacific
Stock Symbol: TLS (ASX)

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History

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Telstra was created to provide universal phone service to the Australian
continent. Formed in 1992 by the merger of Telecom Australia and Overseas
Telecommunications Corporation Limited, the company has transformed from a
small provider of domestic phone service to a global provider with annual
revenues of $22 billion AUD for the 2022 fiscal year.¹ In
November 1997, the Australian government sold one-third of Telstra through
an initial public offering. The sale of this stake was valued at $10
billion AUD. A second tranche was commenced in October 1999, selling an
additional 16.6 percent of the company. The government sold its final
holdings in November 2006, taking in $15.5 billion AUD for a 35 percent
stake.

Telstra is Australia’s leading telecommunications and information
services company, offering a full range of products and services and
competing in all telecommunications markets throughout Australia. The
company’s stated purpose is “to build a connected future so everyone can
thrive.” 

Due to the company’s near-monopoly in many telecom markets, Australian
regulators called for a Telstra breakup in June 2009. No proposed
standards have yet been put into effect, so Telstra continues to
develop new and enhanced products and services. 

In 2020, the company proposed a legal restructure, said to be Telstra’s
biggest since its 1997 founding. The result will be the creation of the
New Telstra Corp. as the head entity for the Telstra Group and will house
four main entities: ServeCo, InfraCo Fixed, Amplitel, and Telstra
International.

• ServeCo which will focus on products and services,
  including customer support and experience. ServeCo will own the active
  parts of the network, including the radio access network and spectrum
  assets.
• InfraCo Fixed will own and operate Telstra’s passive
  or physical infrastructure assets, including fibre, data centres, and
  exchanges that underpin Telstra’s fixed telecommunications network.
• Amplitel will own and operate Telstra’s passive or
  physical mobile tower assets.
• Telstra International will own and operate the
  international business.

As of October 2022, Telstra provides 18.8 million retail mobile services,
3.8 million retail fixed bundles and standalone data services and 960,000
retail fixed standalone voice services.²

Key Executives

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• Chief Executive Officer and Managing Director: Vicki
  Brady
• Chief Financial Officer and Group Executive, Strategy and
  Finance: Michael Ackland
• Group Executive, Transformation, Communications and People:
  Alexandra Badenoch
• Group Executive, Enterprise: David Burns
• Group Executive, Networks and IT: Nikos Katinakis
• Group General Counsel and Group Executive Legal, Regulatory,
  Government and Sustainability: Lyndall Stoyles
• Telstra InfraCo CEO: Brendon Riley
• Group Executive, Product and Technology: Kim Andersen
• Group Executive, Global Business Services: Dean
  Salter

Major Services

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Telstra’s service portfolio ranges from basic voice to Internet,
wireless, and IP data transmission. Its target markets include residents,
mobile employees, small businesses, enterprises, and government.

Major Competitors

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Telstra’s competitors are those telecom companies serving the same part
of the world.

• Optus: https://www.optus.com.au/
• TPG Telecom: https://www.tpgtelecom.com.au/
• Spark New Zealand: https://www.spark.co.nz/
• Vocus Group: https://www.vocus.com.au/

Recent Activity

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Telstra completed the acquisition of a 51.4 per cent controlling interest
in Fetch TV following regulatory clearance in August 2022. Fetch TV
supplies set-top boxes to broadband retailers who provide an add-on to
broadband services as well as direct to consumers. Telstra TV is supplied
to customers with eligible Telstra broadband services. Fetch will continue
to operate as a standalone business with Telstra as a majority
shareholder. The company says that Telstra TV will continue to be
supported for all existing users during this onboarding period, and
Telstra will offer its customers Fetch-based products as part of a new TV
entertainment operation in 2023.

In March 2022, Telstra announced that Vicki Brady will be the company’s
new Chief Executive Officer replacing Andrew Penn. Brady, who is currently
Telstra’s Chief Financial Officer, will officially take over as CEO on
September 1. Brady joined Telstra in 2016 and has held the role of Group
Executive, Consumer and Small Business in addition to her current role of
CFO and Group Executive responsible for Strategy, which she was appointed
to on July 1, 2019. The move comes as Penn announced his intention to
retire after serving more than seven years in the role.

Telstra announced in June 2021 that a consortium comprising the Future
Fund, Commonwealth Superannuation Corporation, and Sunsuper will become a
strategic partner in Telstra InfraCo Towers after agreeing to acquire a 49
per cent interest. The Towers business is the largest mobile tower
infrastructure provider in Australia with approximately 8,200 towers, and
the transaction values Telstra InfraCo Towers at $5.9 billion.

Also in June 2021, the company said it had achieved its goal to roll out
Telstra 5G services to 75 per cent of Australians by the month’s end.
Telstra says that than 1.5 million 5G devices are live on the network and
thousands more are being added every week. As the company’s 5G roll out
continues, its 4G network expansion is also proceeding with more than two
million square kilometres covered reaching 99.4 percent of the population.

References

¹ Telstra Annual Report 2022. Telstra Corporation
Limited. 2022.

² Neil Aitken. “Who Owns Telstra?” What Phone Plans.
Retrieved November 2022.

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