[LINK] We're overpriced: Telstra CEO admits

[stephen at melbpc.org.au]

We're overpriced: Telstra CEO admits

October 28, 2009 - 2:04PM  (plus: Comments 26)
http://www.theage.com.au/technology/biz-tech/
 
 
"We've gone too far out of line" ... David Thodey.

Telstra has flagged price reductions for its broadband products and 
services as it fights to maintain market share in the highly competitive 
sector.

Chief executive David Thodey said today price cuts were "imminent" as the 
telco giant wanted to compete aggressively on broadband offerings.

"In some parts of the market we've gone too far out of line and we need 
to come back," he told an investor briefing.

Telstra's most recent annual results showed a drop in fixed broadband 
take-up, but its wireless broadband revenue grew by 69.2 per cent to $587 
million.

A strong focus of Mr Thodey's presentation to investors today was 
improving customer service.

"We must focus on our core business and our customers, this is where we 
create value for shareholders," he said.

"At its simplest, the next stage in Telstra's long-term strategy is to 
focus on satisfying customers, invest in new capabilities, and drive 
growth in new businesses." AAP

Comments: 26 comments so far.

Telstra "focus[ing] on satisfying customers" and implementing "price 
reductions". I'd love to believe this will actually happen, however 
experience indicates differently. I guess we can cross our fingers and 
hope!


EM | Sydney - October 28, 2009, 1:54PM
 

Telstra should look not so much at their prices but more at their 
services. I wish they would offer an unlimited download or at least 
something in the 200GB/month range and lose the upload counting.


MFO | Logan - October 28, 2009, 3:16PM
 

Telstra have had a long enough time to fall into line with competitor's 
pricing.
After more than 7 years we just dropped their broadband and phone line 
rental and moved to naked ADSL and VOIP with another provider.
We are already saving at least $70/month, and have a better level of 
service.
Sorry Telstra - too slow......


SC | Sydney - October 28, 2009, 3:21PM
 

Telstra has always been over priced, but because they get to set the 
wholesale prices as well so are all the other providers... The sooner the 
Telstra monopoly is broken the better off Australia will be.


Cathii - October 28, 2009, 3:23PM
 

I would love to think that Telstra would do the right thing and lower its 
broadband costs. At $70 per month I am seriously thinking of chnging. 
Love my Bigpond but can't afford it.


susanai | murwillumbah - October 28, 2009, 3:32PM
 

Telstra "focus[ing] on satisfying customers" ..you're havin' a larf...a 
more arrogant and dismissive organisation would be hard to find


Dunnocks - October 28, 2009, 3:35PM
 

Bigpond's internet pricing has always been too high but the service 
especially on cable has also been very reliable and most of my contacts 
with support people has been good. Having said that, the prices 
definitely need to come down.

To Logan, it is very doubtful that uploads will be removed from the quota 
and in fact more ISPs are now doing this. Uploads are still traffic that 
has to be paid for somewhere but this could be helped by increasing total 
quotas.


Peter | Brisbane - October 28, 2009, 3:40PM
 

I cant believe a CEO could make such an admission. A simple "we are 
seeking to be more competitive" would have sufficed


www - October 28, 2009, 3:40PM
 

One word of advice for those with Bigpond - Go elsewhere. There are 
plenty of fantastic internet providers in the market, for instance 
Internode (www.internode.on.net) and IInet (www.iinet.com.au) that 
provide much better value, and rock solid connections.

Don't stay with Bigpond just because you didn't know there are other 
competitors in the market. Bigpond are a complete an utter ripoff. Do 
your own research on a website like www.whirlpool.net.au.


Joel - October 28, 2009, 3:43PM
 

Maximum 25 gig download and no off-peak allowance for ADSL1 customers is 
laughable. Then throttled to 64k - please. It's a bit like being punished 
by teacher.
What decade does Telstra/Bogpond think we're in?
Customer service? - Joke.
If I could get out of the contract without the ridiculous penalty fees I 
would leave Bogpond and move to IInet in a flash.


IM - October 28, 2009,
3:43PM

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