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Telstra talks up mobile performance
Sydney, Dec 02: Australia`s largest phone company Telstra Corp Ltd said on Monday its mobile division was in a strong financial position and dismissed investor fears it was losing market share to rivals.
Sydney, Dec 02: Australia's largest phone company Telstra Corp Ltd said on Monday its mobile division was in a strong financial position and dismissed investor fears it was losing market share to rivals.
"The mobiles group is in its best financial position it has been in for many years," Telstra Managing Director Mobiles David Thodey told reporters.
However, Thodey would not elaborate on how that translated into earnings in the current half year, refusing to say whether the division could achieve double-digit revenue growth, as it often succeeded in doing in the past.
Telstra shares fell to their lowest level in almost five years last week after the Australian government deferred the sale of its 50.1 per cent stake in the carrier until 2004.
Its shares were steady Monday afternoon at A$4.57 in a firmer overall market.
However, ongoing jitters about the performance of its core mobiles division, which faces intense competition from Singapore Telecommunications Ltd, have also weighed on the share price.
Thodey said the loss of a key contract with Qantas Airways Ltd to SingTel's Australian unit Optus did not signal Telstra was losing its hold on the corporate mobile market in Australia.
Optus outstripped Telstra's mobile revenue growth in the September quarter which Thodey attributed to the way each company reports their results and Telstra's decision to de-activate 255,000 pre-paid customers in that period.
"We see the market very competitive at the moment," Thodey said.
"We have gone out there with a Christmas sale and we are very encouraged about the early results."
Telstra launched the first stage of its third generation (3G) mobile strategy on Monday, announcing it would use 1xRTT technology to offer high-speed mobile data services to business customers in Sydney and Melbourne.
The technology allows Telstra to offer high-speed mobile data products on its existing network, without having to spend billions of dollars in new infrastructure.
However, Thodey would not elaborate on how that translated into earnings in the current half year, refusing to say whether the division could achieve double-digit revenue growth, as it often succeeded in doing in the past.
Telstra shares fell to their lowest level in almost five years last week after the Australian government deferred the sale of its 50.1 per cent stake in the carrier until 2004.
Its shares were steady Monday afternoon at A$4.57 in a firmer overall market.
However, ongoing jitters about the performance of its core mobiles division, which faces intense competition from Singapore Telecommunications Ltd, have also weighed on the share price.
Thodey said the loss of a key contract with Qantas Airways Ltd to SingTel's Australian unit Optus did not signal Telstra was losing its hold on the corporate mobile market in Australia.
Optus outstripped Telstra's mobile revenue growth in the September quarter which Thodey attributed to the way each company reports their results and Telstra's decision to de-activate 255,000 pre-paid customers in that period.
"We see the market very competitive at the moment," Thodey said.
"We have gone out there with a Christmas sale and we are very encouraged about the early results."
Telstra launched the first stage of its third generation (3G) mobile strategy on Monday, announcing it would use 1xRTT technology to offer high-speed mobile data services to business customers in Sydney and Melbourne.
The technology allows Telstra to offer high-speed mobile data products on its existing network, without having to spend billions of dollars in new infrastructure.
Bureau Report