Telstra to cut costs and spend up to $US1 billion in Philippines to fight rivals
October 29, 2015 - 9:01PM
Telstra chief executive Andy Penn will combat rising competition and falling revenues by slashing costs and boosting the levels of customer service delivered through computer systems rather than people.
Speaking to investors in
Sydney on Thursday, Mr Penn also revealed that the telecommunications giant was willing to pump up to $US1 billion ($1.4 billion) into owning a 40 per cent stake of a joint-venture to build a new mobile network in the Philippines, which would value the South-East Asian company at $US2.5 billion.
The push to slash human costs and push hard into relatively risky growth businesses in regions like
Asia and
eHealth come at a crucial time for Telstra as it faces pressure from competitors, regulators and the steady rollout of the national broadband network.
Telstra on Thursday night announced it would slash a total of 411 jobs from its call centres throughout Australia, of which 276 work for third-party contractors.
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But Mr Penn was also maintained guidance for mid-single digit growth in revenue and low-single digit growth in earnings before interest, taxation, depreciation and amortisation for the telco giant.
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