Telstra Corp. (ASE:TLS) in a Time of Change

Sunday, March 14th, 2010

Telstra Corp. is the largest telecommunications company in Australia, and run by Chief Executive Officer David Thodey. In a recent interview with the Wall Street Journal, Thodey talked about the challenges he faces as the legacy business of the company continues to decline and the wireless business surges.

The legacy business is talking about landlines of course, and there is no doubt that will disappear in the not too distant future.

When asked about the faltering landline business, Thodey stated you can't be dependent upon it as it isn't the future of the business, even though it is paying the bills now. If he and the company were to be overly focused on that part of the business it would keep them off the innovative side of the business, which is their future. The company must be focused on the changes in the market if it wants to thrive in the years ahead, according to Thodey.

It is uncertain at this time if the Australian government will allow Telstra to take part in the huge national broadband network in the country dubbed Canberra, which cost about A$43 billion. The other option would be Telstra would have to compete with the initiative.

That led to questions about the role of government in Australian business.

Thodey said his purpose is to "create wealth for shareholders," and so that will obviously clash with the government at times, which while he respects their role, does disagree many times, and will tell them privately, and afterwards state it publicly.

Thodey does believe it is in the best interests of Australia and its government to have a strong private sector.

It looks like Telstra is in good hands with Thodey at the helm, and in times of tremendous turmoil seems to be the right man at the right place at the right time.

Article by Gary B

The views expressed are the subjective opinion of the article's author and not of

Tags: australia business , telecommunications , telstra

Related Articles
Arizona Corporation Commission Discusses Quest-CenturyLink Inc. Acquisition
Nyrstar May Forego Expanding in Australia Because of Super Tax
Sigma Pharmaceuticals CEO Quits After Terrible Annual Results
Telstra (ASX:TLS) in Turmoil as CEO David Thodey Takes Charge
Rio Tinto (ASE:RIO) Australian Executive Confesses to Accepting Bribes in China
Wall Street Not Sure Palm (NASDAQ:PALM) Will Survive
China Warns Australia on Rio Tinto (LON:RIO) Case
Royal Dutch Shell (NYSE:RDS-B) Expected to Raise Arrow Energy Offer
Arrow Energy (ASX:AOE) Gets $3 Billion Bids from Shell and PetroChina
Business Council of Australia Pressures Government to Quickly Restore Surplus
China Indicts Four Rio Tinto (LON:RIO) Employees
Australian Government Withdraws Bank Guarantees
Give Your Opinion
Where to buy luxury houses in Phoenix?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Where to buy luxury houses in Phoenix?
Financial Questions & Answers
Ask A Question
Get opinions on what you want to know:
Specific to any country?