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Tuesday, 15 November 2005 15:09

Telstra job cuts, IP network: plan in summary

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Telstra Shares Lotto Telstra has unveiled a plan that will see it create a single IP based core network, greatly rationalise the delivery of services and reduce staff numbers by around 10,000.

The core of the strategy is the creation of a next generation IP network, an investment of more than $10 billion over five years of which $2-3 billion will be in addition to existing plans. This core network is to be in place by the end of 2007. Telstra will introduce a $200 million training program to give field staff the skills to build and operate this NGN network.

Telstra intends to reduce the number of full time equivalent (FTE) positions by between 6,000 and 8,000 over three years, from 52,000 today and by 10,000 over five years. It intends to replace the CDMA mobile network with a national 3G GSM network which, it claims will offer the same or better coverage. This will take a good number of years, it expects only 25 percent of customers to be using 3G in three years.

 Overall, the number of different network platforms will be reduced from about 330 by 60 percent within three years, and the number of business and operational support systems from about 1200 by 75 percent in three years.

On the upside, it is aiming for 25 percent of new revenue growth to come from new products by the end of 2008 and for Sensis to double its revenue base to $3 billion within five years.

CEO Sol Trujillo scotched any speculation of a sell off of Sensis, or Foxtel, saying that Sensis plays a critical role in Telstra's core strategy and its online business would be further developed by integrating search and transaction based applications and services for Sensis customers and core Telstra customers.

He said Foxtel was a core asset by which Telstra could create shareholder value.

Business and government customers will be served by 16 competency centres to equip large customers to transition to an IP environment and to allow Telstra to grow faster than the market.

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