Interpac Business and Migration Solutions Melbourne Australia

（September 29, 2010）

TELSTRA chief executive David Thodey assured investors today the company could comfortably maintain its dividend payment in 2010-11.
His comments came as Telstra outlined plans to spend $1 billion revitalising its business.

"Telstra's board has always been acutely aware of the importance of dividends to shareholders. Because of our strong free cash flow, Telstra could comfortably fund a 28 cent share dividend in 2010-11," Mr Thodey said.

There had been some concerns that Telstra, the nation's biggest telecommunications group, might cut its dividend payment as it battles tough competition in its key markets and sliding revenues in its once-core fixed line phone business. Telstra shares have been languishing around all time lows amid concerns about its outlook.

Start of sidebar. Skip to end of sidebar.
.End of sidebar. Return to start of sidebar.
The company announced plans last month to spend $1 billion in the current financial year to help it claw back market share from rivals including Singapore Telecommunications' Optus arm and Vodafone Australia, improve customer service and simplify company processes.

The investment comes after the company spent billions of dollars on a transformation program over the recent years under former boss Solomon Trujillo.

"This strategic investment will help Telstra prepare for the future by taking advantage of new revenue streams, and utilises our recently upgraded IT systems and networks to further improve customer service and satisfaction," Mr Thodey said.

The group also flagged a company-wide program, dubbed Project New, to simplify operations and "substantially" reduce costs in coming years.

Under the program, Telstra said it will cut spending on third parties, improve online customer service, improve field workforce productivity, simplify prices and reduce the company's operating costs.

The group didn't say how many jobs are likely to be cut through the program. Telstra, a former government-owned monopoly, cut about 12,000 jobs under Mr Trujillo's transformation program.

Telstra also outlined a number of internal management targets, including that 35 per cent of customer transactions be conducted online by the end of 2012-2013.

The group also drew a line in the sand, vowing to maintain its fixed broadband market share and grow its wireless broadband market share over the coming three years, signalling a potential price war in the sector.

(Source:the Australian)