Australia’s Telstra has unveiled its ‘T25’ strategy, under which it aims to ‘deliver growth, exceptional customer experiences, and continued network and tech leadership’. Among the headline elements of the company’s strategy is its plan to expand the coverage of its 5G network to 95% of the population by the end of FY 2025 (which ends 30 June 2025). Alongside this, the operator has also said it expects to realise a 100,000 square kilometre increase in both its 4G and 5G footprint which will substantially increase regional coverage, while it plans to double the number of metro cells to increase density for greater capacity and speed. As a result of such work, the cellco said it expects 80% of all mobile traffic to be on its 5G network by the end of FY 2025.
With regards to the benefits to shareholders that Telstra expects to realise under its T25 strategy, it said it will ‘aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rate [CAGR] from FY21 to FY25’. Meanwhile, the T25 strategy also aims to deliver AUD500 million (USD366 million) of net cost reductions, cash conversion and generation, active portfolio management and shareholder value through an updated capital management framework.
With Telstra CEO Andrew Penn saying that the company’s previous ‘T22’ strategy had fundamentally transformed the company and paved the way for T25 to deliver growth, the executive noted: ‘T22 has been one of the largest, fastest and most ambitious transformations of a telco globally and today we are a vastly different company … This means we are poised for growth as our society and economy increasingly digitises and we all work, study, transact and get our entertainment online. These fundamental shifts, together with T25, will underpin our future growth and shareholder value.’