The launch of yet another Telstra reorganisation - this one entitled Project New - is added to a number of reorganisations, starting back in 1999; and, as the message remains the same, it seems that very little progress has been made with the previous transformations.
While the company clearly surprised the market with some early good results the fact remains that these restructuring activities are taking place in market where prices and margins are going down relentlessly, and where the competition potentially has more opportunities to compete than Telstra.
What is missing from Telstra is a strategic plan, or at least a vision of where it sees its new growth earning potential coming from.
It won’t come from Project New.
Future growth needs to come from new opportunities that arise from Telstra’s participation in the NBN - what are the areas that the company believe it will participate in and how does it see its role there? For this purpose some forecasts have been added to this report that indicate where the market is likely to go over the next decade.