Telstra Corporation Limited (TLS) is the largest telecommunication company in Australia. It offers a full range telecom services throughout the country. It provides access services to businesses, homes, long and local distance telephone services, international phone calls, internet, and mobile services. Its network extends to up to seven million fixed lines and more than thirteen million mobile phone connections. They are also involved in pay TV services and wholesale telephone directories.
Telstra originates back to 1901 when Australia was an Australian federation. During this year, the postmaster generals department (PMG) was assigned the role of managing all telegraph, postal services, and domestic telephone calls. Commonwealth then established overseas telecommunications commission, which became a monopoly provider and linked Australia with the rest of the world. The PMG postal services were separated from other telecommunication services in 1975. In the year 1981, telecom launched mobile network, which proved to be advantageous to the working population. Later in 1989, telecom Australia was renamed to Australian Telecommunication Corporation. Later in 1992, OTC and telecom merged and formed Australian Telecommunication Corporation limited. In 1993, the name was changed to Telstra.
Telstra is the largest and most efficient telecommunication company in Australia, which has the privilege of providing the best-known brand in the country. As explained, they offer a full range of services and have the muscle to help them compete not just locally but also internationally. Their vision is to be pivotal in the provision of telecommunication services, both internationally and locally. Telstra has thus been able to make many international investments in Asia pacific region. It also continues in its quest for expansion by reviewing all investment opportunities and concentrates on the ones offering substantial financial and strategic placements in the overseas markets. This vision has come to be true since it operates in over 19 countries worldwide.
Telstra has made a reputation for innovative, desirable, and quality services and products. They maintain that all marketing and advertising done must be clear, timely, and effective with the concise information required to pass product and services to the consumer. They insist on providing correct facts and information to the consumer. This is because the consumer is the chief target of the company.
Telstra has strategic business units, which helps in focusing in some specific products provided by the company. Telstra has been using the strategic business units creation of a stronger customer base and focus on improving customer service and operations. Telstra marketing and the consumer is usually responsible for providing services to the small business customers and metropolitan consumer with telecommunication services and products. These include wireless, fixed, data, advertising consumer marketing, sponsorships, and lastly implementing of their product bundling initiatives (Telstra Corporaaation, 1995).
Telstra also sells prepaid mobile phones to its customers through retail intermediaries, who are a direct channel to the market. They have been able to create many retail shops in the country, increasing the personal selling rate increasing the sales. The shops also help in establishing and maintaining customer relationships with the company. Their marketing strategy also entails the internet, where they have created websites for that purpose. The website contains information about the various offers they give to the esteemed customers.
After the government announced the introduction of national broadband network (NBN), Telstra embraced it. It argued that the change was inevitable and had to be adopted and exploited. To be able to successfully run the company, a new management team with broadband knowledge was appointed. The team immediately announced its support for NBN and further stated it was willing to collaborate and work together with the government. Another innovative technology trans-sector concept was also adopted which would provide a basis for more revenue.
In terms of technology, the company is at an edge because of its innovativeness in exploiting opportunities and offering new products in the market. It has a technology, which offers a range of services including mobile, national, business network services, subscription TV, satellite and internet services, and long distance services. The company has been trending in the digital industry carefully (Telstra Corporaaation, 1995). It has since launched the fetch TV services, which are within the triple play model. They have also introduced other IPTV services, which has a record now TV service for mobiles. This allows FTA recording when watching. After long progress, the company intends to broaden its customer base by entering the Tasmania market. The satellite agreement deal signed by the company will help in the advancement of its customer base through acquiring of more subscribers. They also have the wireless broadband which is provides fast data services.
Telstra has generally been doing well after the company embraced it after neglecting retail competition. The company also embarked on a sophisticated approach to customers by producing of I phones, an investment that has brought great returns to the company. To be able to hold on to their customer base, the company needs advanced and skilled marketing skills. This is because its technology has a high potential of seizing any technological opportunities that come along its way. This will be supported by increased use of smart phones in the area of coverage. Mobile phones remain the company’s key market , but the market is under pressure to maintain the returns. The returns and revenue collected from the mobile phone sales are bound to decrease. The company has been on the forefront and has vast experience in the broadband field; thus it has the muscle to stretch and invest in new technology with the aim of making service provision better.
Telstra targets the customer base in Australia. Australians like the rest of the people in the world use mobile phones. Telstra as a telecommunication company exploits this opportunity by providing them with the devices they cannot leave without. Mobile phone technology has always been evolving , and up to recently, there have been smart phones. Telstra has been providing Australians with these phones.
According to research carried out, there are two categories of mobile users. They include low usage customers, technological conscious, and the big spender customers. The low usage customers are cost sensitive to the mobile services and products. However, they enjoy the services provided by the company. These are the infrequent users and the predominant consumer of the prepaid mobile services. They also use a lot of SMS during their day to day activities. The technological conscious and big spender customers are the early adopters of the technology been introduced. They are also big spenders on mobile services and products.
In order to keep making profits and generating the revenue required from the low usage customers, Telstra employs different marketing strategies. These include, focusing on retaining existing SMS and prepaid subscribers. Other marketing strategies focused on continuing growth of new subscribers by focusing on increasing usage of SMS’s. They also aim at improving the customer loyalty by the introduction of more value added services. Telstra also differentiate its messaging from other service providers of prepaid. This ensures that the customer base is not affected by any competition (Fletcher , 2009).
In Australia, Telstra identified 3 G network as a potential investment sector. The companies’ providing 3 G were unable to provide quality and fulfilling services to customers. To keep generating revenue in the country and as a method of promoting telecommunication growth, the company decided to focus on this area. In order to effectively promote the usage of 3 G in the country with only the presence of one competing company i.e. Huchisons 3 g, market study was effectively and quickly carried out in a bid to ensure successful project. Through focusing on group interview, they were to identify target consumers behaviors within the market. They were also to embark on heavy promotion of 3 G services to high usage customers. This was to be conducted through Public relation strategies and effective advertising. Telstra also employed the use of Telstra integrated services, which helped in differentiating the product provided with the one existing in the market. Hutchison in establishing its 3 G network had a lot of flaws. Telstra exploited that flaw and made a flawless network that led to better customer satisfaction and at better prices. Thus, the company was able to gain the dominant share of the 3G subscribers. They also introduced a marketing strategy where they made the customer think that although the network was not the first to land in the country, they made the customers think it was the first.
In most mature markets, growth is hard without being innovative. Thus, for Telstra they introduced the SMS service where customers would get polyphonic ringtones. The idea of getting polyphonic ring tones was marvelous since they were able to generate some good revenue. It also benefited the advertising commission and made extra profit through SMS. The company also built a distribution network in places that were well frequenced. This way the prepaid customers would ensure that they recharged their credit when they reached these places. The places targeted were bus stations, railway stations, shopping complexes and many more areas (Fletcher , 200)().
In conclusion, Telstra is on the forefront in telecommunication services in Australia. IT has benefited from its rich history and according to research and survey done, customer satisfaction has been it first priority. Through customer satisfaction, the company is able to luer the customers into adopting new technology with the while preaching the same message of giving quality. With the presence of aggressive competition, the company has a human resource department with competitive workers and always on the look for people with innovative minds. The competition is so tight and in order to provide a competitive edge in the market, innovativeness comes as a necessity. The employees are also guided by a strict code of ethics, which is to be followed to the latter. Failure is always punishable and there is no room for mistakes in the company. With all these as part of Telstra, the company has been successful and still is successful as the leading telecommunication company in Australia.
AUSTRALIAN NATIONAL AUDIT OFFICE, BOYD, B., & CRONIN, C. (1998). Sale of one-third of Telstra. Canberra, Australian National Audit Office.
TELSTRA CORPORATION. (1990). Telstra news. [Melbourne], Telstra Corp.
TELSTRA CORPORATION. (1995). Telstra MobileNet digital. September 1995, Issue 4, NSW and ACT coverage maps. [Australia], Telstra Corp.
TELSTRA CORPORATION, & MUSEUM AND ART GALLERY OF THE NORTHERN TERRITORY. (2005). 22nd Telstra National Aboriginal & Torres Strait Islander Art Award: 12 August - 23 October 2005. Darwin, Museum and Art Gallery of the Northern Territory.
Telstra Exchange: What's Your View?Sydney: Telstra Corporation, 2009. Internet resource.
FLETCHER, P. (2009). Wired brown land?: Telstra's battle for broadband. Sydney, New South Wales University Press.