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Telstra Admits To Fixed Line Decline |
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Written by Adam Gosling
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Tuesday, 25 October 2005 |
Telstra CEO Sol Trujillo has put the decline in the company’s fixed line revenues at 1.9 per cent in the first half of the last financial year. By the second half, though, it was 5 per cent.
Speaking at the company’s annual general meeting, Trujillo used this acceleration to highlight the challenge Australia’s largest telco faces.
"The world of the telecommunications business is changing fast and no more so than in relation to our fixed line business where revenues are falling due to increasing migration to mobile services and use of e-mail," he said in a speech.
He also pointed a big fat finger of blame at the Government again, claiming regulation was destroying shareholder value. "We have pressures that have been building on the business, regulatory decisions that destroy shareholder value, competitive pressures that are increasing, technology changes that must be dealt with and other issues facing the business.
"As a result of pressure from the last few years, revenues are declining in the core business while costs are increasing," he said. Though how he justifies these increasing costs was not clear.
In a preview to what we can expect in a month’s time when Trujillo hands down his strategic review of the company, he said the company will be “leaner” after his review so watch out for when the pink slips start flying.
The Telstra board came in for a bit of flack also at the meeting with one T1 investor calling for its dismissal.
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