- Telstra (TLS) plans to extend its 5G network coverage to 95 per cent of Australia’s population by 2025 and cut about $500 million in net costs
- Dubbed T25, the plan builds on the $2.7 billion of savings outlined under the T22 plan
- The T25 plan is expected to take effect on July 1 next year and includes the potential rollout of a 6G network
- Telstra also says it is confident of maintaining a minimum fully franked dividend of 16 cents per share throughout the T25 plan
- Shares in Telstra are up 1.78 per cent to $4.00 at 11:44 am AEST
Telstra (TLS) outlined a new plan this morning, which will extend its 5G network coverage to 95 per cent of Australia’s population by 2025 and cut about $500 million in net costs.
The cost reductions put forward in the plan — dubbed T25 — are on top of the $2.7 billion already being targeted under its current T22 strategy, the telecommunications giant said in a statement.
The plan is expected to take effect on July 1 next year and includes the potential rollout of a 6G network.
If T22 was a strategy of necessity, said Telstra CEO Andrew Penn, T25 was a strategy for growth.
“T22 has been one of the largest, fastest and most ambitious transformations of a telco globally and today we are a vastly different company,” he added.
“This means we are poised for growth as our society and economy increasingly digitises and we all work, study, transact and get our entertainment online.”
Telstra also said it was confident of maintaining a minimum fully franked dividend of 16 cents per share throughout the T25 plan.
The company, which was split into three in November, sold a 49 per cent stake in its mobile tower business for $2.8 billion in July. Telstra has been trying to restructure its operations as it faces persistent headwinds on its fixed-line business from the rollout of a state-owned broadband network.
Shares in Telstra were up 1.78 per cent to $4.00 at 11:44 am AEST.