Telstra Share Price Drops as They Address NBN Struggle

Telstra Corp Ltd [ASX:TLS] have taken action against NBN issues as they plan to activate their services through a modem which has integrated 4G capabilities.

Last year, customers were experiencing issues with Telstra’s NBN services.

Existing residents and newly moved individuals were plagued with installation faults, and some were waiting months for an NBN installer or a repair team to assess any issues.

Telstra’s shares have not been very solid, either.

Today they slightly dropped by 0.29% and have been dipping all throughout 2017.

Telstra gained 235,000 new retail mobile customers and 454,000 NBN connections for its half year results on 2017/18.

How Telstra will take action

It’s no secret the NBN has negatively impacted Telstra’s earnings.

Telstra is countering the bad effects, as they are currently in the process of transferring its NBN fix-line customers to 50/20Mbps net speed.

Addressing customer issues is one of their priorities, as they have introduced a ‘Get Help!’ service for their call centre.

The service cuts call times for NBN-related issues by six minutes.

Their discount on 50/20 mps speed will act as compensation to any problems their customers have faced.

With 1.6 million customers on the NBN, Telstra are aware of the importance in issues with their network.

Telstra’s CEO, Andrew Penn made the statement to shareholders:

We are stepping up how we aggressively compete in the market, particularly leveraging our multi-brand strategy including Telstra, Belong, Boost and Telstra Wholesale.

Telstra’s near future plans

Telstra is targeting a total of $1.5 billion in net productivity gains in the next four years.

Recently, Telstra revealed the ‘open telco experiment’ which will combine a number of elements from three different open source software projects.

Telco states its ‘bringing multiple emerging open-source telecommunications software platforms (including ECOMP, CORD and ONAP) together.

Telstra is also perusing 5G capabilities by using new mid-band radio frequency technology and advanced multiple aerial tech.

Trials for 5G usability will begin in the second half of 2018.

Telstra recently opened a 5G innovation centre as part of a $60 million-dollar investment.

The new 5G network will function primarily on two wireless bands, which are 3.6GHz and GHz.

The higher frequencies will offer quicker speeds while the lower ones will be better at passing through walls and other inanimate objects.


Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

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