Telstra announced a new strategy to lead the Australian market by simplifying its operations and product set, improving customer experience and reducing its cost base.
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The strategy, named Telstra2022, has four key pillars:
- Radically simplify our product offerings, eliminate customer pain points and create all digital experiences
- Establish a standalone infrastructure business to drive performance and set up optionality post the nbn rollout
- Greatly simplify our structure and ways of working to empower our people and serve our customers
- Industry leading cost reduction programme and portfolio management
The changes form a three-year plan building on the strategic investments Telstra announced in 2016.
Telstra CEO Andrew Penn said the strategy would fundamentally change the nature of telecommunication products and services in Australia by eliminating many pain points for customers.
A consequence of the plan is an expected net reduction in employee and contractor numbers of 8,000, including removing one in four executive and middle management roles to flatten the structure.
The strategy leverages the significant capabilities already being built through Telstra’s up to $3 billion strategic investment announced in August 2016 in creating the Networks for the Future and digitising the business.
The Telstra2022 strategy will therefore be underpinned by the largest, fastest, safest, smartest and most reliable next generation network. The digitisation program is delivering completely new technology stacks for Consumer and Small Business and Enterprise customer segments which will be the platform for the new products we are launching.
Customers will start to benefit from this simplified approach in July when Telstra launches peace of mind data across a range of new post-paid plans, making excess data charges a thing of the past.
Four more major product and service experiences will be progressively announced in the lead up to June 2019, the details of which will remain confidential at present for competitive reasons.
By June 2019 Telstra customers will experience a radically simplified experience made possible by new intuitive digital platforms, with all customers being moved to the new product range by 30 June 2021. ■