Showing posts with label Telstra. Show all posts
Showing posts with label Telstra. Show all posts

Tuesday, January 19, 2021

Telstra activates Toronto POP

Telstra activated a point-of-presence in Toronto, its first POP in Canada. 

Telstra owns and operates the largest subsea cable system (with more than 250,000 miles of subsea cables globally); the company currently carries nearly one-third of all Asia-Pacific internet traffic.

The new Telstra POP is hosted at Cologix’s TOR1 interconnection hub in Toronto. Cologix’s TOR1 data center is located in the most connected building in Toronto with 150+ unique network partners in the onsite Meet-Me-Room (MMR) with more than 200 local customers. Cologix Toronto customers have direct connectivity to Amazon Web Services, Google Cloud Platform, Microsoft Azure ExpressRoute, IBM Cloud and Oracle FastConnect.


“We’re proud to be the largest and most connected data center company in Canada with 17 data centers across Canada in Toronto, Montreal and Vancouver,” said Sean Maskell, Cologix Canada President. “Located at 151 Front Street, Canada’s largest and most important carrier hotel, Cologix’s TOR1 interconnection hub is a prime location for Telstra to enter the Canadian market. With our scalable, secure and reliable infrastructure across Canada, Telstra can quickly grow its business and reach new customers.”

Tuesday, November 17, 2020

Telstra to speed up trading across eight global exchanges

Telstra is introducing a financial trading solution that leverages its priority routes over its trans-Pacific subsea cable networks. 

The Telstra Octagon service will provide financial firms with low latency connectivity directly into eight of the world’s most valuable futures and commodities marketplaces. This includes the CME and ICE exchanges in the U.S. as well Australia, Hong Kong, Singapore, Taiwan, South Korea and Japan. 

Telstra owns and operates the largest subsea cable system with more than 250,000 miles of subsea cables globally that connects the world with Asia, currently carrying nearly one-third of all Asia-Pacific internet traffic.

Priority end-to-end access to the networks enables financial and trading organizations to respond to market-moving events as they happen and execute investment strategies across Asian, Australian and U.S. capital markets. Additional benefits include Telstra’s network redundancy, resilience and market access.

“The Telstra Octagon was designed to enable global financial trading firms to thrive in the hyper-competitive trading world of today where the difference between success and failure is measured in milliseconds,” said Nicholas Collins, president, Telstra Americas.

“These are challenging and unprecedented times for global finance, and we believe that the Telstra Octagon will provide both established and upcoming organizations the ability to trade faster across key exchanges between North America and the dynamic markets in the Asia-Pacific region,” Collins continued.

Thursday, November 12, 2020

Telstra's 3-way restructuring: InfraCo Fixed, InfraCo Towers, ServeCo

Telstra is proposing a major restructuring that would to create three separate legal entities within the Telstra Group:

  • InfraCo Fixed, which would own and operate Telstra’s passive or physical infrastructure assets: the ducts, fibre, data centres, subsea cables and exchanges that underpin Telstra’s fixed telecommunications network.
  • InfraCo Towers, which would own and operate Telstra’s passive or physical mobile tower assets, which Telstra will look to monetise over time given the strong demand and compelling valuations for this type of high-quality infrastructure.
  • ServeCo, which would continue to focus on creating innovative products and services, supporting customers and delivering the best possible customer experience. ServeCo would own the active parts of the network, including the radio access network and spectrum assets.
Telstra CEO Andrew Penn said the plan is driven by monetisation opportunities for its infrastructure assets where this might create additional value for shareholders.

“The proposed restructure is one of the most significant in Telstra’s history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company’s assets and create further optionality for the future,” Mr Penn said.

“The challenges and disruptions of the last 6-12 months have reinforced the increasing value of infrastructure assets globally; the importance of the digital economy, not only to business but to the whole of Australia and its economic recovery; and the dependence of the digital economy on telecommunications as its platform. Our proposed new corporate structure reflects this new world and will help us support the foundation for it – one that is in the interests of our shareholders, our employees, our customers, and ultimately one that benefits the country overall.”

Tuesday, September 29, 2020

Telstra launches 400G service based on Ciena

 Telstra has launched commercial wavelength services based on 400G technology from Ciena. For the deployment, Ericsson delivered Ciena’s WaveLogic Ai and WaveLogic 5 Extreme solutions along with associated local professional services for optical transmission. The higher bandwidth services can now quickly be delivered with a single card, offering on-demand capacity, from 100G up to 400G. 

In a trial, Telstra also achieved 700G per wavelength transmission between Melbourne and Sydney – a distance of greater than 1,000km.

“Telstra’s network is geared for 5G, cloud computing, and applications like edge-computing, and this is a significant and fundamental upgrade to the hidden infrastructure that powers our business across Australia.  By upgrading our optical transmission networks with 400G technology, Telstra will be able to cater for capacity demands of up to 400% of what was previously achievable. The upgrade enables us to rapidly deliver services to customers at scale without fibre builds, decreasing the time to market from weeks, to days” Chris Meissner, Transport, IP Core & Edge Engineering Telstra Executive, said.

“This optical transmission upgrade is an important step in increasing capacity requirements to meet unprecedented capacity demands.  This critical infrastructure capability forms the foundation of Telstra’s current and future network requirements and ensures Telstra can achieve transmission cost efficiencies and scale to meet the traffic demands that come with media rich and next generation services including 5G and edge compute services. This latest industry milestone will ensure that Australia remains at the cutting-edge of telecommunications technology,” Emilio Romeo, Head of Ericsson Australia and New Zealand said.

Thursday, September 24, 2020

Microsoft and Telstra enter cloud + 5G partnership

Microsoft and Telstra are extending their long-standing strategic partnership to focus on accelerating cloud-based solutions combined with 5G. Telstra has named Microsoft as its preferred cloud provider for ongoing internal digital transformation.

Telstra and Microsoft also agreed to:

  • harness IoT, Edge, AI and digital twin capability to develop important new industry solutions in areas such as asset tracking, supply chain management, telematics and smart spaces;
  • leverage Azure as preferred cloud for Telstra’s ongoing internal digital transformation.
  • explore and pursue technology and data-driven solutions to advance our sustainability and climate commitments and
  • build ground-breaking, nationally important solutions that leverage the Telstra Data Hub.

The companies also agreed to partner on digital twins for Telstra customers as well as for Telstra’s own commercial buildings and selected other infrastructure – which when fully deployed will be one of the largest Azure-based digital twins in Australia. 

“We already have a longstanding relationship with Microsoft and have worked together in areas that are market-leading to create unique experiences for our customers. Over the past 18 months, we have exclusively launched Xbox All Access for Australian gamers, were the first to launch Telstra Calling for Office 365, the only native Teams voice calling plan in Australia, which we recently expanded to include Microsoft Business Voice for SMB customers; and co-collaborated on Telstra Data Hub to help industries better manage their data securely,” said Telstra CEO Andrew Penn.

“The broad adoption of cloud and 5G technology will create new opportunities for businesses worldwide, including in Australia,” said Satya Nadella, CEO, Microsoft. “We’re expanding our partnership with Telstra and bringing together the power of Azure and Telstra’s network to build new solutions in critical areas like asset tracking, supply-chain management, and smart spaces, harnessing the latest advances in AI, digital twins, and mixed reality.”

https://news.microsoft.com/2020/09/24/telstra-microsoft-partnership-signals-new-generation-digital-foundations-for-australian-businesses/

Thursday, August 13, 2020

Telstra hit by bushfires and COVID-19 pulls forward 5G spending

Citing difficulties stemming from the Australian bushfires and the COVID-19 pandemic, Telstra a 5.9 percent drop in FY20 income to AUS$26.2 billion. NPAT decreased 14.4 percent to $1.8 billion. Reported EBITDA was $8.9 billion. After adjusting for lease accounting on a like-for-like basis, EBITDA decreased 0.3 percent to $8.4 billion.

CEO Andrew Penn said: "2020 is proving to be an enormously challenging year for everyone – for governments, businesses, communities, and for all of us as individuals. The emotional, mental, and economic stresses as a result of the COVID-19 pandemic and necessary restrictions are profound. Through this extraordinary disruption – both the COVID-19 and bushfire crises, Telstra was challenged to adapt, to find new ways of supporting our customers, our people and the country in a time of need. I am very proud of the way our team responded, while dealing with the implications on themselves personally. The COVID-19 period has also highlighted that connectivity has never been more critical. We have witnessed a huge acceleration in the digital economy, an area now critical to a fast economic recovery where Telstra has a key role to play."

“nbn wholesale pricing remains the largest negative impact on our fixed business. Without some sort of longterm change leading to improvement in RSP economics, the risk of retail price increases, reduced customer experience or customers moving onto other networks such as 5G will increase. In Telstra’s case the profitability of reselling the nbn is negligible at best – that is not sustainable,” said Mr Penn.

“Earlier this year we decided to bring forward $500 million of capital expenditure planned for the second-half of FY21 into calendar year 2020. This is enabling us to accelerate our 5G rollout further while injecting much-needed investment into the economy. As a result, late last month I announced that we have increased our ambition and plan to cover 75 percent of the population with our 5G network by June next year.”

Some highlights:


  • Telstra’s multi-brand strategy continued to deliver subscriber growth, particularly in mobile where it added 240,000 retail postpaid handheld mobile services, including 154,000 from Belong. It also added 171,000 retail prepaid handheld unique users, 347,000 Wholesale services and 652,000 IoT services.
  • Overall mobile revenue declined $461 million in FY20. Reported postpaid handheld ARPU declined 8.2 percent or 6.8 percent excluding the impact of COVID-19 on international roaming.
  • In the fixed business, revenue continued to be impacted by nbn migration, alongside the continued decline of voice and legacy services and operational issues. Through a focus on differentiated customer experiences including the Telstra Smart Modem, the company continued to have a market-leading share with 46 percent of the estimated nbn market (excluding satellite).
  • During the year Telstra reduced underlying fixed costs5 by $615 million, or 9.2 percent. This brought underlying fixed cost reductions achieved since FY16 to $1.8 billion and put Telstra on track to achieve its $2.5 billion net cost reduction target in FY22.


  • Telstra has announced 12,000 indirect role reductions and 7,300 direct workforce role reductions since it launched T22 in June 2018. As at the end of June 2020, the direct workforce was around 5,700 lower than two years ago. This figure includes 1,600 new roles recruited like software engineering and cyber security – and some additional roles brought on board in response to COVID-19 to mitigate workforce offshore capacity issues.



Telstra plans to expand its network infrastructure in the U.S. by increasing bandwidth capa

Monday, July 20, 2020

Nokia deploys Self-Organizing Network software for Telstra

Telstra will deploy Nokia’s EdenNet SON solution to automate its radio access network (RAN) configuration management, improving network performance and efficiency to support the increased demands of 5G. The agreement will see Telstra roll out Nokia’s SON solution on its multi-vendor, nationwide 3G, 4G and 5G RAN. It will be delivered across model, staging, and production environments. Financial terms were not disclosed.

Nokia’s EdenNet SON is an open, 3GPP standards-based platform that enables mobile operators to efficiently realize the full potential of their existing networks, as well as drive transformation to 5G. As a centralized solution, the cognitive EdenNet SON platform eliminates complexities from multi-vendor, multi-technology and multi-layered networks.

Ashley Hunter, Network Engineering Executive, Telstra, said: “Telstra is a world leader in adopting new radio and platform technologies, and Nokia’s EdenNet SON solution will help enable us to automate our network configuration and operations to improve cycle time, repeatability, reliability and cost. Nokia’s Open SON framework APIs hide the complexity of the underlying network, allowing Telstra to focus on automating the configuration of our network to help provide greater reliability, faster speeds and peace of mind for our customers.”

Tuesday, July 7, 2020

Telstra to expand network infrastructure in the U.S.

Telstra plans to expand its network infrastructure in the U.S. by increasing bandwidth capacity on its trans-Pacific subsea cables; opening two new points-of-presence (PoPs) in the region; and upgrading many of its in-country circuits to enhance network resiliency and diversity.

Telstra said it has seen increased demand from its U.S.-based customers and partners needing to carry data, content, and IP to and from Asia, especially as the world continues, in large part, to be affected by the COVID-19 pandemic. Telstra reports up to a 35 percent increase in traffic overall on its international network as well as a shift from 10G to 100G services on its trans-Pacific subsea cables.

Telstra's plans include:

  • Increasing bandwidth by more than 1.5 terabytes in the next six months on multiple subsea cables from U.S. West Coast to Asia-Pacific 
  • Opening PoPs in Hillsboro, Oregon and Los Angeles, California to support increasing bandwidth requirements from organizations in the surrounding areas. This brings Telstra’s total number of PoPs in the U.S. to 21. The company also recently launched PoPs in Atlanta, Seattle, Denver and Dallas and a new sales office in Chicago.
  • Upgrading in-country circuits, from bundles of 10G transit services to 100G to ensure U.S. network resiliency and diversity between all of Telstra’s PoPs in the country.

“We’ve experienced incredible demand for connectivity into Asia-Pacific over the last year, as more U.S. businesses look for growth in Asia, one of the world’s largest growth markets,” said Nick Collins, President of Telstra, Americas. “To meet this need, ensure we deliver the best experience to our customers, and remain one of the most-trusted partners to deliver content, data and IP to and from the U.S. and Asia, we are committed to continually investing in our U.S. network infrastructure, at a time when connectivity and collaboration between the two high-growth regions continues to be important.”

Thursday, June 11, 2020

Telstra: 93% of businesses shift IT priorities due to COVID-19

Enterprises are rapidly adapting their IT priorities in response to the global pandemic, according to a new study commissioned by Telstra and conducted by GlobalData.

The research, Business Continuity, Flexible Working and Adaptive Infrastructure: Five Actions for When the Economy Reopens Following COVID-19, gathered data from 120+ business leaders across Asia Pacific, Europe and the United States to provide insights on how to recalibrate IT strategies. The research was conducted together with GlobalData to survey C-suites and IT decision-makers to understand organizations’ responses to the pandemic.

Some highlights:

  • 93% of businesses state they have changed their IT priorities either incrementally, significantly, or dramatically. Businesses are updating their overall IT strategy, with the top priority for respondents across all regions to set up policies for their remote workforce. This includes areas such as ensuring employees can connect securely and access their applications and data.
  • Nearly one in ten enterprises did not have a business continuity plan (BCP) pre-COVID-19. Of those organizations that did have a BCP in place, almost a third (29%) did not have plans in place to respond to an unexpected global event such as a pandemic. In the United States, only 14% - the lowest among the regions - claimed to have a full BCP, which included major events and pandemics, in place.
  • Video conferencing and cloud-based contact center solutions are some of the most transformative technologies to the enterprise. Video is the new voice in collaboration. 98% of respondents believe there will be an increased reliance on video conferencing to replace face-to-face meetings post-COVID-19 recovery.

Dustin Kehoe, Services Director from GlobalData shared, “It was interesting to see the overwhelmingly positive response for video conferencing. While the technology has always been available, we are seeing a generational shift in perception from pre-and post-COVID-19 eras.”

https://forms.telstraglobal.com/BusinessContinuityReport

Sunday, May 3, 2020

Telstra implements cloud-native 5G core with Ericsson

Telstra has now upgraded its 5G radio access network (RAN) coverage footprint across Australia, connecting a Cloud Native 5G Core network to handle new 5G Standalone traffic. Ericsson is Telstra's lead vendor.

5G Standalone means that Telstra already has the capability to run 5G independent of existing 4G network technology. 5G SA devices are expected to be commercially available in Australia in late 2020.

Nikos Katinakis, Telstra’s Group Executive Networks & IT, said Telstra was the first communications service provider in Australia and one of the first in the world to reach the 5G end-to-end Standalone capability milestone.

“Getting the Telstra mobile network to be 5G Standalone-ready is an important step towards unleashing greater capabilities for enterprises and consumers alike. Working together with our technology partner Ericsson, our new 5G service-based architecture will allow us to create innovative new services and solutions and deliver these much quicker than in the past.”

Emilio Romeo, Head of Ericsson Australia and New Zealand, says: “5G New Radio Standalone and 5G Core is the next evolution in architecture for 5G networks, which will help to increase network efficiency and drive new uses, particularly for Industry 4.0. We’re pleased to be working with Telstra to ensure Australians have access to this leading technology, that will ultimately drive new innovation and industries.”

Telstra deploys Ericsson's container-based EPC core

Ericsson and Telstra successfully deployed a live cloud-native container-based Evolved Packet Core for 4G and 5G services -- an industry first and a significant milestone in network orchestration and automation, according to the companies..

Ericsson's cloud-native container-based Evolved Packet Core was deployed in Telstra’s production Network Functions Virtualization Infrastructure (NFVi). It is fully integrated into Telstra’s mobile core network and is carrying live 4G and 5G Non-Standalone (NSA) traffic.

Highlights of Telstra’s cloud-native Evolved Packet Core :

  • Ericsson Packet Core Controller and Ericsson Packet Core Gateway support 4G and 5G Non-standalone (NSA) control and user plane functions in both a centralized configuration and edge-breakout configurations.
  • Ericsson’s Packet Core Controller is deployed as a cloud-native container-based Mobility Management Entity (MME) in an existing MME pool.
  • Both the Ericsson Packet Core Controller and Packet Core gateway are designed from the ground up to be fully cloud-native container-based solutions. They run on Ericsson’s Cloud Container Distribution (CCD) that is part of Ericsson’s NFVI solution or on other Cloud Native Computing Foundation (CNCF) aligned distributions.
  • Ericsson CCD provides container management and orchestration for the latest Ericsson cloud native applications. CCD can be run on bare metal or within a Virtual Machine in an OpenStack deployment.

Sunday, March 29, 2020

Ericsson and Telstra achieve 200km reach on an LTE connection

Telstra has achieved a 200km cell range capability on its mobile network using equipment from Ericsson. The 3GPP specification targets a reach of up to 100km.

The first extended reach call was completed earlier this year using a Telstra site at Mount Dowe in the Australian state of New South Wales and demonstrates that this new capability can deliver up to double the 4G cell range.

The extended reach was enabled via a software upgrade to the Ericsson Radio System deployed by Telstra.

Head of Ericsson Australia and New Zealand, Emilio Romeo, said, “We’re delighted to partner with Telstra as we continue to pursue mobile network innovations. This breakthrough means that with an Ericsson-developed software upgrade, we will be able to extend the current LTE call range from 100km up to 200km, catering to the unique needs of Australia, given its land mass and geographical size.”

Telstra Network Engineering Executive Channa Seneviratne said, “Effectively doubling the current 4G coverage range of a mobile base station is a huge win for regional and remote Australia. We live in a vast nation and fast data in more places is critical in ensuring that we are providing the best coverage for our customers, whether they're in the city or the country.

Thursday, January 16, 2020

Telstra's Programmable Network integrates with Equinix ECX Fabric

Telstra's Programmable Network (TPN) is leveraging Equinix Cloud Exchange Fabric (ECX Fabric) to enable customers to create private multicloud network connections to cloud providers. The on-demand multicloud network connectivity to more than 170 service providers will be available in 38 Equinix markets globally.

The Equinix ECX Fabric is a software-defined interconnection service that enables any business to connect between its own distributed infrastructure and that of any other business, including the world's largest network service and cloud providers, on Platform Equinix. Telstra's API integration with ECX Fabric enables streamlined access to the world's largest cloud providers, including Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure and Google Cloud on Platform Equinix via global, software-defined interconnection.

Telstra's TPN is a software-defined network service platform designed to help businesses embrace digital transformation and quickly respond to customers and changing market dynamics with next-generation agility, flexible consumption of services and automated provisioning of network services. Telstra provides a wide range of network, security, cloud and application services that can be managed via a customer portal with a single unified view or customer systems interfaced via APIs.

"As customers scale delivery of their enterprise applications by leveraging leading cloud providers across new markets, the deeper integration of Telstra Programmable Network (TPN)—our SDN platform—with Platform Equinix provides our customers a unique ability to provision cloud connectivity services within minutes to 170 providers across 38 locations globally. TPN allows our customers to build secure, reliable and predictable performance for their applications, which in turn drives acceleration of business outcomes through improved employee productivity," states Sanjay Nayak, Product and Service Design Director, Global Connectivity and Platforms, Product and Technology, Telstra.

Wednesday, December 18, 2019

Telstra deploys Ericsson's container-based EPC core

Ericsson and Telstra successfully deployed a live cloud-native container-based Evolved Packet Core for 4G and 5G services -- an industry first and a significant milestone in network orchestration and automation, according to the companies..

Ericsson's cloud-native container-based Evolved Packet Core was deployed in Telstra’s production Network Functions Virtualization Infrastructure (NFVi). It is fully integrated into Telstra’s mobile core network and is carrying live 4G and 5G Non-Standalone (NSA) traffic.

Highlights of Telstra’s cloud-native Evolved Packet Core :

  • Ericsson Packet Core Controller and Ericsson Packet Core Gateway support 4G and 5G Non-standalone (NSA) control and user plane functions in both a centralized configuration and edge-breakout configurations.
  • Ericsson’s Packet Core Controller is deployed as a cloud-native container-based Mobility Management Entity (MME) in an existing MME pool.
  • Both the Ericsson Packet Core Controller and Packet Core gateway are designed from the ground up to be fully cloud-native container-based solutions. They run on Ericsson’s Cloud Container Distribution (CCD) that is part of Ericsson’s NFVI solution or on other Cloud Native Computing Foundation (CNCF) aligned distributions.
  • Ericsson CCD provides container management and orchestration for the latest Ericsson cloud native applications. CCD can be run on bare metal or within a Virtual Machine in an OpenStack deployment.

Emilio Romeo, Head of Ericsson Australia and New Zealand, says: “Telstra and Ericsson are leading the mobile industry with this first container-based cloud-native Evolved Packet Core in Telstra’s production environment and carrying live traffic. This is an important step towards fundamentally changing the way both companies deploy and operate mobile core networks. Core networks will become much more flexible and agile, allowing operators such as Telstra to quickly create and deploy compelling new services for their customers. This in turn helps operators build new revenues.”


Tuesday, October 1, 2019

Construction begins on Southern Cross NEXT Cable

The Southern Cross NEXT project has achieved CIF (Contract in Force) status and has entered the construction project phase.

The Southern Cross NEXT submarine cable is a state-of-the-art 4 fibre pair undersea route utilising an open cable design and enhancing the existing Southern Cross eco-system. The system will also provide full fibre connectivity to Auckland, New Zealand, and will incorporate Branching Units (BU) and OADM technology for connections to Fiji, Tokelau and Kiribati. Given its robust design and route including branches, the 16,148km cable system will provide the lowest latency path from Australia and New Zealand to the United States. Organisers said Southern Cross NEXT represents a network investment of around US$300 million. It is designed to carry 72 terabits per second of traffic. Completion is targetted for the end of 2021 or early 2022.

“The achievement of CIF is a testament to the hard work of the combined Southern Cross and Pioneer Consulting team over many months and is a validation of the technology and expertise behind the new cable,” said Southern Cross President and CEO, Laurie Miller. “The addition of the Southern Cross NEXT route to our platform will provide existing and future customers with further resiliency and connectivity options between Australia, New Zealand and the United States.”

“From our initial guidance on the network’s overall design and technical specifications, to providing commercial and procurement support, we are delighted to continue to work with Southern Cross on the next phase of this robust network through to system in service,” said Pioneer Consulting Managing Partner, Keith Schofield.

“We can now firmly focus on the implementation and deployment of the NEXT system which promises to bring greater resiliency, redundancy and capacity to our extensive network, along with the ongoing development of product enhancements to meet the evolving requirements of our customers,” said Southern Cross CTO, Dean Veverka.

Southern Cross signs Alcatel Submarine Networks


Southern Cross Cable Limited awarded a contract to Alcatel Submarine Networks (ASN) to supply the Southern Cross NEXT submarine cable, based on an Open Cable architecture. The Southern Cross NEXT submarine cable is a state-of-the-art 4 fibre pair undersea route utilising an open cable design and enhancing the existing Southern Cross eco-system. The system will also provide full fibre connectivity to Auckland, New Zealand, and will incorporate Branching...


Sunday, August 18, 2019

Telstra posts declining sales/profits, focuses on T22 strategy

Citing negative headwinds from nbn, Telstra last week reported total FY 2019 income of A$27.8 billion, down 3.6 percent year over year. EBITDA decreased by 21.7 percent to $8.0 billion.

Regarding the impact of the nbn, Telstra absorbed around $600 million of negative recurring EBITDA headwind in the period. Underlying EBITDA decreased approximately 4 percent excluding the in-year nbn headwind.

To date, Telstra estimates the nbn has adversely impacted EBITDA by approximately $1.7 billion since FY16, and estimates it is around 50 percent of the way through the recurring financial impact of the nbn.

Telstra CEO Andrew Penn said the company is fully committed to its T22 strategy one year in and that it is making strong progress on its implementation.

“FY19 has been a pivotal year for Telstra. Notwithstanding the intense competitive environment and the challenging structural dynamics of our industry, it is a year in which I believe we can start to see the turning point in the fortunes of the company from the changes we have embraced,” Mr Penn said. “We completed our strategic investment program announced in 2016 to digitise our business and create the networks for the future, delivering over $500 million of EBITDA benefits. We passed the halfway mark of customers migrating onto the nbn network. We launched 5G, the next generation of telco technology and the platform for future growth for us and our customers. And at the start of the year we commenced our T22 strategy, where we have made very significant progress."

Telstra said it has removed  $456 million in underlying costs in the year.

"This means we have achieved $1.17 billion in reductions since FY16 and we are on track to achieve our $2.5 billion net cost reduction target by FY22," Mr Penn said. “Our cost out drivers have included simplification and digitization and this has led to reductions in direct and indirect labour costs as well as non-labour related costs. Examples include 900,000 fewer truck rolls over the year enabling us to reduce our fleet vehicles by 14 percent, and we have also reduced our property footprint by 8 percent."




Some highlights:

  • Telstra Consumer and Small Business - income decreased by 1.6 percent to $14,271 million, largely impacted by a 6.3 percent decline in fixed as a result of ongoing standalone fixed voice decline. Mobile services revenue decreased by 2.3 percent as declining Average Revenue Per User (ARPU) offset customer net additions. Network Applications and Services (NAS) revenue continued to grow, increasing by 13.9 percent, primarily driven by growth in unified communications.
  • Mobile broadband revenue decreased by 14.0 percent to $673 million after a decline in ARPU and reduction of 266,000 customer services in postpaid and prepaid. IoT revenue grew by 19.4 percent to $203 million, increasing customer services by 561,000 due to the introduction of new IoT products
  •  Telstra now serves a a total of 2,605,000 nbn connections, an increase of 659,000. nbn market share is now 49 percent (excluding satellite)
  • Telstra Enterprise - income increased by 0.3 percent to $8,243 million as growth in international offset a decline in domestic. Telstra Enterprise domestic income decreased by 2.1 percent as growth in NAS and mobility was offset by industry ARPU decline in Data & IP and ongoing decline in ISDN. Telstra Enterprise international income grew by 9.0 percent mainly due to growth in higher-margin Data & IP and a positive impact from the depreciation of the Australian dollar (AUD).
  • Networks and IT  - responsible for the overall planning, design, engineering architecture and construction of Telstra networks, technology and information technology solutions. It primarily supports the revenue-generating activities of other segments. Networks and IT income decreased by 6.7 percent to $70 million.
  • Telstra InfraCo - income excluding internal access charges decreased by 6.3 percent to $3,057 million due to expected declines from Telstra Wholesale fixed legacy and nbn commercial works, partly offset by increased recurring nbn DA receipts. Including internal access charges, income increased by 51.6 per cent to $4,948 million. Internal access charges were recognised from 1 July 2018 following the establishment of Telstra InfraCo as a standalone business unit, therefore there were no access charges in FY18.
  • Telstra InfraCo is now fully operational as a standalone infrastructure business unit within Telstra. Telstra InfraCo controls assets with a book value of around $11 billion and is responsible for key network assets including data centres and exchanges, most of the fibre network, the copper and hybrid fibre coaxial networks, international subsea cables, poles, ducts and pipes.

Telstra creates property trust to monetize assets

Telstra has created an unlisted property trust that will own 37 existing exchange properties.

A Charter Hall-led consortium will acquire a 49 percent stake in the new property trust for $700 million, reflecting a capitalisation rate of 4.4 percent and valuing the entire property trust at $1.43 billion. Telstra will retain ownership of a 51 per cent controlling interest in the property trust and retain operational control of the properties.

Telstra describes the exchanges as relatively high-value ones in which it expects to maintain a presence long term. The exchanges represent a significant portion of the value attributable to Telstra exchanges. Telstra will sign long-term triple-net leases with the property trust. The leases will have a weighted average lease expiry of 21 years, with multiple options for lease extension to accommodate ongoing requirements.

Telstra said the announcement reflects continued progress on the fourth pillar of its T22 strategy to monetise up to $2 billion of assets to strengthen its balance sheet.

Telstra sells 3 data centers, exits Ooyala

Telstra announced the sale of three international data centres for $160 million,  yielding a nine times EBITDA multiple and $110 million gain on sale.  Media reports identified the buyer as I-Squared Capital, a private equity fund.

Telstra also announced the sale of its Edison Exchange in Brisbane for $57 million. The company has also restructured its Telstra Ventures arm and exited its Ooyala business.

In 2014, Telstra acquired Ooyala, a Silicon Valley-based provider of video streaming and analytics, for US$270 million. Telstra had previously invested US$61 million in Ooyala over the past two years. Ooyala harnesses the power of big data to help broadcasters, operators and media companies build more engaged audiences and monetize video with personalized, interactive experiences for every screen.

Tuesday, July 23, 2019

Telstra completes 5G end-to-end standalone call with Ericsson

Telstra completed Australia’s first end-to-end 5G SA (stand-alone) call over 3.6GHz spectrum using Ericsson’s Baseband 6630, Radio AIR6488 and a 5G SA device based on a MediaTek chipset.

5G Standalone will be the eventual architecture of 5G radio networks/

Emilio Romeo, Head of Ericsson Australia and New Zealand, says: “Successfully completing Australia’s and the southern hemisphere’s first 5G standalone call is a vital step in driving industrial productivity and bringing Industry 4.0 to life. 5G is not just another incremental upgrade, but a platform for innovation marking a new era of intelligent connectivity.  Together with Telstra – one of the world’s first operators to launch 5G commercially on 5G non-standalone (NSA) – we continue to lead and drive innovation to ensure Australia remains at the forefront of telecommunications technology.”

Channa Seneviratne, Network and Infrastructure Engineering Executive, Telstra says: “Telstra has achieved a number of world and Australian milestones on our 5G journey and the successful completion of Australia’s first 5G end-to-end standalone call on Telstra’s network is the latest entry. This continues Telstra’s ongoing participation in global 5G leadership whilst simultaneously driving the deployment of 5G in Australia. To date we’ve already launched 5G in 10 cities, and this will increase to at least 35 cities over the next 12 months. Making this stand-alone 5G call at our 5G Innovation Centre contributes to our ongoing end-to-end 5G ecosystem learnings. This is another example of the ongoing industry collaboration working within the 5G eco-system and technology partners like Ericsson to pave the way for 5G advancements, and the benefits it will bring all Australians.”

Monday, May 27, 2019

Telstra launches its first 5G device, the HTC 5G Hub

Telstra launched its first commercial 5G mobile device, the HTC 5G Hub.

The HTC 5G Hub is a 5G/4GX media hotspot that can function as a secure mobile corporate solution or a family entertainment hub.

“Our launch of the HTC 5G Hub is the moment 5G becomes a reality for Australian consumers,” Mr Penn said. “Since 2016, we have been working with some of the world’s leading technology brands to ensure Australians are among the first in the world to be able to access 5G. HTC has been a key partner for Telstra, innovating new technologies and driving greater connectivity for our customers. This launch of Australia’s first 5G mobile device is a testament to that partnership" Mr Penn continued “and we are proud to be launching it today,” stated Telstra’s CEO Andrew Penn.

Thomas Dexmier, Country Manager HTC Australia and New Zealand said, “HTC is very proud to partner with Telstra to bring the first 5G media hotspot to Australia. With the HTC 5G Hub, customers will be able to experience the power and speed of Telstra’s 5G network in an innovative device, that combines the advanced capabilities of a mobile hotspot with the versatility of the Android operating system, allowing them to connect at home, at work, and on the go.”

Monday, April 15, 2019

Telstra broadens its Global Media Network

Telstra Broadcast Services is expanding the reach of its Global Media Network (GMN) by adding new partners in the Americas and Europe.

Telstra’s GMN is a media contribution and distribution network that enables the delivery of live, linear and file-based media content worldwide, helping sports and entertainment companies reach viewers and sports fans in Asia and around the world. The GMN utilises Telstra’s global infrastructure including fibre cable networks, data centres and cloud platforms, combined with the networks, media assets and broadcast operations of partners.

The expansion brings together Telstra’s GMN with its first Latin American partner,

New partners include Gold Data, one of Latin Americas's leading telecommunications providers, Zayo Group, a major provider of American and global communications infrastructure, and Norkring, a division of Telenor that provides broadcast and connectivity services across the Nordic region.

The new partners join a growing Telstra GMN partner alliance that includes The Switch, AT+T, TDF Group, NEP Connect, MTI Teleport Munchen, GlobalConnect, Nexion, Softbank, PCCW and China Unicom.