Telstra 2003 Annual Report Download - page 10

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P.8
International Our international business includes mobile carrier CSL, Hong Kong’s leading
provider of mobile voice and data services; TelstraClear, the number two full service operator in
the New Zealand telecommunications market; and REACH, Asia’s largest international carrier
of combined voice and data.
CSL is still the most profitable mobile carrier in Hong Kong. Management’s focus on carefully
targeted marketing and cost reduction has produced a standout profit performance despite
extraordinarily difficult conditions, including the impact of SARS.
TelstraClear had a successful year, with strong growth coming from increased revenue,
operational efficiencies and reasonable regulatory outcomes.
REACH is operating in a difficult market for wholesaling of international connectivity, and still
potentially faces some years of demanding conditions.
Regulation
The regulatory landscape today is more settled, with a number of major regulatory issues
having been resolved.
The Estens Regional Telecommunications Inquiry gave us a good report card. The Inquiry found
that significant improvements to regional telecommunications services have been made and
that Telstra is contributing to real service benefits.
Service improvement and cost control
Improving customer service and satisfaction remains our number one business priority.
In this way, we expect to earn the loyalty of our customers and grow revenues. At the same
time, our experience convinces us we can also manage costs down without harming customer
service and satisfaction.
Using Six Sigma process improvement methodology we have found ways, for example, to
pre-test the network to see if a customer needs to stay at home to wait for a technician to fix
a fault. The result has been 13,000 fewer visits to customers’ premises since September 2002,
which means fewer trucks, vans and technicians on the road and associated cost savings. For
13,000 customers it also means they didn’t have to interrupt their schedules and stay at home
to meet the technician.
Cash from Operating Activites before tax
Proceeds from Asset Sales
Income Tax Paid
Capital and Investment Expenditure
Dividends Paid
Net increase / (decrease) in cash
Net Repayment of Debt
$248
WHERE DID TELSTRA'S CASH FOR 2002/03 GO?
$m 2,000 4,000 6,000 8,000 10,000
$8,593
$840
($1,536)
($3,332)
($972)
($3,345)
0