Telstra Business Model Canvas

Telstra actively collaborates with government agencies at federal, state, and local levels. These partnerships are crucial for navigating regulatory landscapes and ensuring compliance with telecommunications laws. For instance, Telstra's role in the nbn™ rollout involved significant cooperation with government entities to deliver broadband services across Australia.

These collaborations extend to infrastructure development, where government support and policy frameworks are essential for projects like expanding 5G networks. In 2024, Telstra continued to invest billions in its mobile network, often aligning with government priorities for digital connectivity and economic growth.

Furthermore, Telstra serves various government organizations, providing them with essential telecommunications and technology solutions. This includes secure networks for defense, communication systems for emergency services, and digital platforms for public administration. These engagements underscore Telstra's position as a vital partner in supporting national infrastructure and government operations.

• Regulatory Compliance: Telstra engages with agencies like the Australian Communications and Media Authority (ACMA) to adhere to industry regulations.
• Infrastructure Development: Partnerships support national broadband initiatives and 5G expansion projects, crucial for Australia's digital future.
• Government Services: Telstra provides critical telecommunications and technology solutions to various government departments and agencies.

Telstra is forging key alliances to bolster its artificial intelligence and data capabilities. A significant collaboration is with Accenture, a global professional services company, to embed AI and data solutions throughout Telstra's operations. This partnership is designed to speed up Telstra's digital transformation, improve how it runs its business, and create specific AI tools.

This strategic move involves a substantial investment from Telstra, allocating $100 million annually for seven years. This commitment underscores Telstra's dedication to leveraging advanced technologies for competitive advantage and enhanced customer experiences.

• Accenture Collaboration: Telstra has partnered with Accenture to integrate AI and data solutions across its business.
• Investment Commitment: Telstra is investing $100 million per year for seven years in this strategic AI initiative.
• Objectives: The partnership aims to accelerate digital capabilities, boost operational efficiency, and develop specialized AI tools.
• Digital Transformation: This alliance is central to Telstra's broader strategy for digital transformation and innovation.

Spectrum licenses are fundamental to Telstra's ability to offer robust mobile services, directly impacting capacity, speed, and user experience. These licenses are the conduits through which Telstra delivers its 4G and 5G networks. Continued investment in acquiring and expanding spectrum holdings is crucial for meeting the ever-growing demand for mobile data.

Telstra actively participates in spectrum auctions to secure and enhance its holdings. For instance, in 2023, Telstra acquired significant new spectrum in the 26 GHz band, which is vital for expanding its 5G network capabilities and offering enhanced mobile broadband services. This strategic acquisition supports the increasing data consumption trends observed across its customer base.

• Access to mobile spectrum: Essential for providing high-capacity, fast, and reliable mobile services.
• Investment in spectrum: Telstra continues to invest in acquiring spectrum to meet rising data demand.
• 5G expansion: Spectrum acquisition, like the 26 GHz band in 2023, is key to enhancing 5G network performance.

Telstra's digital platforms, including its extensive online portals and user-friendly mobile applications, serve as the primary conduits for customer engagement, facilitating sales, and streamlining service management. These digital assets are crucial for delivering a seamless customer experience and driving revenue.

The company is actively investing in advanced technologies like artificial intelligence (AI) to bolster these digital assets. This strategic investment not only enhances customer interactions but also significantly improves operational efficiencies across the business.

In 2024, Telstra continued to prioritize its digital transformation, with significant investments aimed at enhancing its digital capabilities. For instance, the company reported ongoing development of its My Telstra app, which saw a substantial increase in active users, demonstrating the growing reliance on digital channels for customer service and account management.

• Digital Platforms: Telstra's online portals and mobile apps are central to customer interaction, sales, and service.
• AI and Technology Investments: Ongoing investment in AI and other digital technologies enhances customer experience and operational efficiency.
• Customer Engagement: The My Telstra app, a key digital asset, experienced significant user growth in 2024, highlighting its importance for customer self-service and engagement.

Telstra actively cultivates customer loyalty through its loyalty programs, designed to offer concrete advantages and tailored promotions, thereby encouraging repeat business and reducing churn. For instance, their "Telstra Plus" program allows customers to earn points on eligible purchases, redeemable for discounts on devices, accessories, or even future services, directly linking customer engagement to tangible rewards.

The company's strategic pivot towards value-based pricing underscores a dedication to enhancing the overall user experience and the perceived worth of its offerings. This approach means pricing is not solely cost-driven but also considers the benefits and satisfaction customers derive from their services, aiming to align costs with the value delivered. In 2024, Telstra reported a significant increase in customer satisfaction scores, partly attributed to these customer-centric pricing and loyalty initiatives.

• Loyalty Programs: Telstra Plus program offers points for purchases, redeemable for discounts and rewards, fostering customer retention.
• Value-Based Pricing: Pricing strategies are aligned with user experience improvements and perceived value, not just costs.
• Customer Retention: These initiatives contribute to Telstra's ongoing efforts to maintain and grow its customer base by offering compelling reasons to stay.
• 2024 Impact: Customer satisfaction metrics saw positive movement in 2024, with loyalty and value-based strategies playing a key role.

Telstra actively cultivates community relationships and upholds corporate responsibility through targeted programs. A key focus is enhancing digital literacy across Australia, aiming to equip citizens with essential skills for the modern economy. By 2024, Telstra had invested significantly in these digital inclusion initiatives, impacting hundreds of thousands of Australians.

Furthermore, Telstra is committed to environmental stewardship, with a stated goal of achieving carbon neutrality. This commitment is backed by concrete actions and investments in renewable energy and sustainable practices, demonstrating a dedication to long-term environmental well-being. These efforts extend beyond mere service provision, building a foundation of trust and goodwill.

• Digital Skills Development: By mid-2024, Telstra's digital skills programs had reached over 500,000 Australians, providing training in areas like online safety and digital communication.
• Environmental Goals: Telstra reported a 40% reduction in its Scope 1 and 2 emissions by the end of its 2023 financial year, progressing towards its carbon neutrality targets.
• Community Investment: In 2024, Telstra continued its significant investment in community programs, contributing over AUD $50 million to various social and environmental initiatives.

Telstra actively partners with a wide array of government organizations, from local councils to federal departments. These partnerships are crucial for delivering essential public services. For instance, in 2024, Telstra continued to be a key provider of secure network infrastructure for critical government operations, ensuring reliable communication for public safety and administrative functions.

The company's offerings to government entities go beyond basic connectivity. They include advanced digital solutions designed to enhance efficiency and citizen engagement. Telstra's commitment to cybersecurity is paramount, providing governments with the confidence needed to manage sensitive data and critical infrastructure.

Telstra's engagement with the public sector in 2024 included significant investments in upgrading telecommunications networks to support government digital transformation initiatives. This focus on modernization aims to improve service delivery and accessibility for citizens across Australia.

• Secure Network Infrastructure: Providing robust and secure telecommunications for government operations.
• Digital Transformation Support: Enabling government agencies to adopt new digital technologies.
• Public Service Enhancement: Facilitating improved citizen access to government services.
• Cybersecurity Solutions: Offering advanced protection for sensitive government data.

Telstra's wholesale segment serves other telecommunications carriers, carriage service providers, and internet service providers. These businesses rely on Telstra's extensive network infrastructure and capacity to offer their own services to consumers and businesses. For instance, in the first half of fiscal year 2024, Telstra reported wholesale revenue growth, demonstrating the continued demand for its network capabilities from these partners.

This segment is crucial as it allows Telstra to monetize its significant investments in network build-out and maintenance. By providing access to their infrastructure, Telstra enables smaller or specialized providers to reach customers without the prohibitive cost of building their own networks. This symbiotic relationship expands service availability across Australia.

Key aspects of this customer segment include:

• Network Access: Providing wholesale access to Telstra's mobile and fixed-line networks.
• Capacity Leasing: Offering bandwidth and data capacity to other service providers.
• Interconnection Services: Facilitating the connection of different networks for call and data routing.
• Resale Opportunities: Enabling partners to bundle and resell Telstra's underlying services under their own brands.

Telstra's wholesale services generate significant revenue by offering access to its extensive network infrastructure and telecommunications services to other carriers and internet providers. This segment is crucial for expanding service reach and leveraging its asset base.

The performance of this revenue stream is robust, as demonstrated by a substantial increase in earnings. For instance, wholesale revenue surged by 20.1% in the first half of fiscal year 2025, highlighting strong demand and effective service provision to partners.

• Network Access Fees: Earnings from other telecommunication companies utilizing Telstra's core network infrastructure.
• Wholesale Data Services: Revenue generated from providing bandwidth and data connectivity to internet service providers.
• Interconnection Charges: Income from facilitating call and data traffic between different networks.
• Managed Network Solutions: Revenue from offering tailored network management and support services to business clients through wholesale channels.

Telstra’s revenue from pay television and content partnerships is a key component, providing subscribers with a variety of entertainment choices. This stream is bolstered by collaborations with content creators and distributors, enhancing the overall value proposition for customers.

However, this segment has faced challenges. Consumer content revenue experienced a significant decline of 20.1% in the first half of fiscal year 2025, indicating a contraction in this specific revenue area.

• Pay Television Services: Revenue generated from offering subscription-based television channels and on-demand content.
• Content Partnerships: Income derived from agreements with content providers, including licensing fees and revenue sharing.
• Consumer Content Revenue Decline: A reported decrease of 20.1% in H1 FY25 for consumer-focused content sales and subscriptions.