The year 2017, is not the good year for Telstra, biggest telephone company. The company has to go through intense competition due to the decline of its revenue and profit to 1.8billion Australian dollars. The company shared this loss in the first half of the year so it is forced to cuts its whole year revenue into the bottom end of its prediction to a mid to high single digit success range. Telstra is in the way of moving away from the best telecom infrastructure provider company in the country to a pure play retail and corporate communication services company like Australia’s National Broadband Network.
The following challenges are ahead for this telecom company
Retail revenue: Telstra Retail market, which usually gives telecommunications products, services and solutions to its customers and small to medium-sized businesses, had revenue fall by 5.6%. No regulatory changes are included in it which are used for the access of network almost like 1.8%. Telstra should have a goal to grow to get it’s earning in this market in a post-NBN world.
Mobile revenue is a problem: Due to the fixed telephony device, mobile business is going to fall. this is what Telstra is worried about. Its mobile revenue drops to 8.7% regulatory impact which is 2.4% in the last six months ended December 31. Just a six month before it was about 4 to 5 billion only, there is the long gap between both digit and it is the great worry for the company.
The only hope for the company is the Telstra TV which is the most fastest-growing streaming device in the country. 622,000 devices are present in the market from the company, and company made 322,000 new customers in the six-month period. Telstra will supply a second order of the devices soon with updated specs.It is clear that investors of the company are worried about a crowded market which is going down and is seeing cut throat pricing. that will get investors worried in a crowded market that is seeing cut throat pricing.
It is clear that investors of the company are worried about a crowded market which is going down and is seeing cut-throat pricing.