Telstra CEO says NBN customer migration nearly complete

Andy Penn, Telstra CEO

Telstra is celebrating the approaching conclusion of its NBN buyer migration.

Though saying sturdy initial-50 % 2022 money success, the telco said the charge of migrating clients (and their linked set traces) to the NBN fell by $190 million, and that value will tumble once more in the next 50 % with much less prospects left to migrate.

The carrier claimed overall revenue decrease of 4.4 per cent to $10.5 billion, with income down 34 per cent calendar year-on-12 months to $743 billion.

Component of the earnings decrease also associated to the NBN, as CEO Andrew Penn said.

“Our documented whole revenue contains declines of about $450 million in a person off NBN receipts and $200m in NBN commercial works”, Penn said.

iTnews requested Penn about two other important factors of NBN Co’s associations with its retail customers: the existing ACCC assessment of NBN Co’s particular entry undertaking (SAU) and NBN Co’s proposal to change its CVC value framework.

Penn would not talk about money impacts, but gave a potent indicator that Telstra will not be rushed in any SAU negotiations, contacting them a “once-in-20-year” chance.

“The ACCC is likely as a result of a procedure of reviewing the NBN pricing composition – there have not however been any changes that have been communicated to us,” Penn mentioned.

“Like all RSPs, we’re eager to see the outcomes of the overview. It’s a the moment-in-20-calendar year opportunity to get the construction appropriate.

“We want a framework which is likely to perform for every person – NBN Co, shops and buyers – and we’re keen to see how that plays out.”

On CVC prices, Penn explained there is a disconnect concerning wholesale and retail products and services.

“The retail field doesn’t selling price products and services on the basis of how a lot persons use,” he mentioned, pointing out that surplus broadband details expenses are mainly a detail of the earlier.

However, today’s CVC construction means retailer’s charges are dependent on customer info use.

“The wholesale value and the retail rate are out of sync, and which is a dilemma we hope to see settled,” Penn reported.

In that, he echoed Aussie Broadband’s controlling director Phillip Britt, who earlier this thirty day period identified as for a CVC-totally free 50 Mbps wholesale NBN service.

Today, Penn explained just 9 p.c of Telstra’s shoppers are on a 100Mbps support, which the carrier wishes to improve in the future, placing a top quality on its ability to minimize CVC expenses.


The provider stated whilst its lengthy-lasting digitisation efforts experienced been delayed in this 50 % year, it is nevertheless reaping monetary and buyer support payoffs from the system.

Penn declined to say accurately how considerably digitisation had price tag Telstra, telling iTnews only that the program was portion of $3 billion in initiatives “across accessibility and digitisation” initially declared in 2016, so “between $1.5 and $3 billion” has been expended on digitisation.

In the shopper and small organization area, Penn stated, 50 percent of profits interactions occur digitally, and “almost a few quarters of all service interactions with consumer and small business enterprise buyers are now digital”.

Electronic interactions are also growing in its company organization, to more than a person-third of all provider interactions.

This has brought on a substantial fall in get in touch with centre interactions, with Penn indicating that phone calls to buyer and tiny company contact centres are down by 70 %.

That will allow for Telstra to shift all simply call centres in that division onshore by the close of the economic calendar year.

Provider eyeing LEOsat chances

Penn also explained to iTnews that Telstra is fascinated in how LEOsats might suit into its foreseeable future ideas.

“You will hear far more from us,” he reported. “Satellites and LEOsats have a number of appealing use instances.”

All through the earnings phone, he pointed out that Telstra has just signed a deal with Viasat that will see the provider deploy fibre to aid the company’s planned start of a 3 Tbps satellite, as well as dealing with other on-the-floor infrastructure.

Telstra will also offer connectivity to deliver Viasat knowledge to Asia.

Other use cases consist of world wide web of factors applications, significantly in regional and rural areas.

Digitally-enabled farm gear is a useful instance, simply because as Penn pointed out, “not each and every paddock has connectivity.”

Broadband backhaul where fibre isn’t available, and unexpected emergency services, are two other satellite programs Telstra has its eye on.