Telstra is finally opening the wallet to fix its problems. CEO Andy Penn announced the telco’s results today, with annual profit jumping 35.9% to $5.8 billion, but more importantly, Telstra will spend an extra $1 billion a year for three years to “boost capacity in key networks to cater for increasing demand, building 4G network capabilities while laying foundations for the 5G network” says BI’s Chris Pash.
Penn acknowledged there were a “pain points” for customers they needed to fix, so the business is upping its capex to sales ratio to 18% – its highest since the 3G build in 2009.
But Telstra is cagey about where the $3 billion is being spent, saying it doesn’t want to alert its competitors. The details are here.
Why are we waiting? The census website is due back up today. Possibly maybe. Could any other business survive with its site down for more than 40 hours? And now the IT prime minister, Malcolm Turnbull, flicked the switch to full bluster mode today declaring “heads will roll” (didn’t the last guy use that line too?), 24 hours after his everything’s-ok-we’re-in-control media address yesterday. Today the PM’s “very angry about this” and “bitterly disappointed” – and he actually got to lodge his census form before it all came crashing down