CEO Vicki Brady says the emergence of artificial intelligence and demand for cloud storage are reasons to keep the telco’s massive infrastructure business.
New Telstra CEO Vicki Brady says it makes more sense to keep the telco group’s infrastructure business than to sell it.“We see the trends that are happening technology-wise – the shift to the cloud, the rapid AI adoption – all of those things contribute to an optimistic view of long-term growth out of InfraCo Fixed,” Ms Brady said.
But Daniel Moore, portfolio manager at fund manager IML, said it was a good decision by Telstra to keep InfraCo Fixed due to its “really high-quality assets”.“Longer-term, companies owning all their infrastructure or most of their infrastructure provides them with a lot more flexibility, provides them with more growth options,” Mr Moore said. Ratings agency Moody’s Investors Service said retaining InfraCo Fixed would be “credit positive” for Telstra.
But Telstra warned that cutting costs was becoming harder due to continued inflation in the prices of goods and services, including energy. In Telstra’s enterprise business, which provides services to corporations and governments, earnings slid 38 per cent to $411 million.and automate some operations to compete harder with software-based rivals for business customers. The company is not planning further job cuts, Ms Brady said.this financial year because it wants to prioritise getting consumer and small business customers onto digital networks. “We won’t be scaling it up in FY24, but it is a capability we have built,” Ms Brady said.
Ms Brady said she had not had time to properly review the new 372-page special access undertaking issued by NBN Co on Wednesday which proposes changes to wholesale pricing on the broadband network. Telstra will consider the proposed changes, she said.for consumer broadband services was withdrawn. The new proposal has suggested smaller price increases for popular internet plans.
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