Investors Not Convinced By Telstra's Strategies

Australian incumbent Telstra announced a series of strategies to revive its flagging earnings and market share at its investor meeting on September 29 2010. The operator outlined programmes to streamline its operations - which included plans to cut 6,000 jobs, or 15% of its total workforce, over the next three years - and improve customer service. BMI thinks that Telstra's strategies to become leaner and more customer-focused are necessary for the operator succeed in Australia's competitive telecoms industry. However, Telstra may encounter more challenges in the short-term due to its lack of a game-changing tactic amid the intensifying landscape. It remains to be seen if Telstra will be able to strike a balance between regaining its market share and tolerating reduced profit margins.

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