Australia’s leading telecom Company, Telstra Corporation Limited (ASX: TLS) has recently announced the opening of its first Business Technology Centre in Townsville. This new Business Technology Centre is the first of 28 Centres which are going to be rolled out nationally as part of the company’s Telstra2022 or T22 strategy. Announced in June 2018, Telstra’s T22 strategy is focused on simplifying the company’s operations and product set to enhance the customer experience and reduce the company’s cost base.
Townsville has different types of industries with businesses of all sizes which makes it a major economic gateway to North Queensland. This is a reason why Telstra chose this region for its first Business Technology Centre. It is expected that through this Business Technology Centre, the local business will gain access to better technology and advice from global technology providers. Although efficiencies are expected from this transformation, the company has not yet revealed how much money it will save from it.
At the Annual General Meeting (AGM) which was held in December 2018, the company’s Chairman Mr. John Mullen had told that the company need to completely transform into the telecommunications equivalent of an Amazon, Uber or Netflix. He further suggested that the company requires a dramatic reinvention.
As per recent market news, it is expected that Telstra will shut around 78 business centres and in place of that, it will open 28 new Business Technology Centres which will be rolled out nationally. As part of its T22 strategy, the company is going to phase out around 78 business centres to gain more efficiencies.
Telstra’s T22 strategy is aiming to transform the company in such a way that it could deliver simpler and more flexible products in order to provide an enhanced digital service experience. As part of its T22 Strategy, the company is planning to Digitize its entire core operation and reduce its consumer plans to just 20. Further, the company is aiming to reduce 2-4 layers of management. The company is also planning to eliminate the need for two-thirds of customer service calls in order to simplify the business. As part of its T22 strategy, the company is also planning to take out around $2.5 billion of cost.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $3.130 with a market capitalization of ~$37.23 billion as on 5 March 2019 (AEST 03:11PM). The counter opened the day at $3.120 and reached the day’s high of $3.140 and touched a day’s low of $3.090 with a daily volume of more than 18,091,076. The stock has provided a year till date return of 14.08% & also posted returns of 3.94%, 4.98% & 0.96% over the past six months, three & one-months period respectively. It had a 52-week high price of $3.404 and touched 52 weeks low of $2.547, with an average volume of ~ 27,536,161.
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