Telstra 2007 Annual Report Download - page 72

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Telstra Corporation Limited and controlled entities
Directors’ Report
Director s’ Report
In accordance with a resolution of the Board, the directors present their report on the consolidated entity
(Telstra Group) consisting of Telstra Corporation Limited and the entities it controlled at the end of or during
the year ended 30 June 2007.
Principal activity
Telstra's principal activity during the financial year was to provide telecommunications and information
services for domestic and international customers. There has been no significant change in the nature of
this activity during the year.
Strategy
We are Australia’s largest telecommunications and information services company moving rapidly toward
being a media communications company. We offer a full range of products and services throughout
Australia and various telecommunication services in certain overseas countries.
During fiscal 2006, we announced our new strategic and operational focus to continually move forward as
a market leader in the telecommunications industry. This review was a blueprint for improving our long
term performance by providing a solid platform to drive future growth and create operational efficiencies.
Our vision is to streamline our processes to provide solutions that are simple and valued by our customers,
which we believe will ultimately lead to the creation of long term value for our shareholders. Our strategy
involves:
• providing customers with integrated telecommunication services;
• investing in systems and processes to remove complexity and cost from the business;
• continually improving our operating performance in mobiles and broadband, as well as accelerating
opportunities in Sensis;
• investing in new services and applications to differentiate us from our competitors; and
• targeted investing in areas where we can create value for our shareholders.
We are delivering our strategy through the implementation of a one factory approach and market based
management. The one factory approach involves bringing together the operations and management of our
internal IT systems, removing duplication and complexity in our systems and implementing simpler and
efficient processes and systems, which we believe will improve our operational efficiency and cost structure.
Market based management involves us obtaining a better understanding of each of our respective
customers’ unique segment needs, priorities and expectations. It is based on extensive market research,
which we will utilise to ensure our processes and procedures meet our various customer requirements to
ultimately provide them with better services.
Transformation
Although the transformation of our Company is at an early stage, current progress is encouraging. We are
now nineteen months into our five year transformation. Our key achievements in the past year, as we
execute our five year transformation strategy, include that we:
• built our national Next GTM network in ten months which is the worlds largest and fastest wireless
high-speed broadband network. Our Next GTM coverage is expected to be the same or better than
CDMA in mid October 2007;
• upgraded the networks speeds to 14.4 megabits per second (Mbps) nationwide - the worlds fastest
wireless broadband network;
• extended the Next GTM network range up to 200 kilometres (at selected sites);
• have two million 3GSM customers with over one million on the Next GTM network;
• launched national high-speed ADSL with network speeds up to 20Mbps;