Australian operator Telstra has unveiled a new multi-year strategic plan called T25. The company plans improved network coverage and customer service to help achieve average annual growth over the next five years in mid single digits for underlying EBITDA and the high teens for adjusted EPS. Additional cost savings of AUD 500 million in the period FY2023-25 should also support plans to maximise dividends going forward, going from a floor of 16 cents per share.
The new Telstra targets presented at an analysts meeting include increasing its Net promoter score by 25 points across segments and expanding participation in its Telstra Plus loyalty programme to 6 million customers by FY25 from the current 3.5 million. The company plans a greater focus on enterprise solutions, as well as VAS such as energy, health and integrated home services for consumers to drive growth.
Network expansion plans include growing 5G coverage to 95 percent of the population by the end of the forecast period. This will include extending regional coverage of 4G and 5G by another 100,000 km, taking 4G to 100 percent of the existing network footprint by FY24. Telstra expects 5G to make up 80 percent of mobile traffic by FY25.
The new plans come as the group nears completion of its previous plan T22, which saw a significant restructuring of its infrastructure and focus. The earlier announced plan to split into four operating companies – Infra Co Fixed, Amplitel (or Infra Co Towers), Telstra Ltd (or ServeCo) and Telstra International – is the final stage of T22, which should be completed in the current fiscal year to June 2022. CEO Andrew Penn said that while the previous plan "was a strategy of necessity, T25 is a strategy for growth".
