Telstra has used its Q3 market update to speak of the challenges facing the Australian telecommunications giant, including 5G, the National Broadband Network (NBN), and TPG entering the mobile market, providing a pessimistic view of FY19.
In a speech to be presented on Monday in Boston, Telstra CEO Andy Penn said the telco industry will need to figure out how to monetise 5G and upskill their workforces.
"We are in a transition to the next generation of technology as we move to software-defined networks, network function virtualisation, and 5G ... the crucial question for the sector is how the telcos capture a bigger share of the economic value that will be generated by 5G than we did with 4G," his speech says.
"Recognising this dynamic, we need to build new skills in new areas, and that is what we have been doing at Telstra."
NBN has also caused "challenging dynamics" in the telecommunications industry, with now more than 170 fixed-line resellers in the market, as well as the upcoming entrance of TPG[1] as Australia's fourth mobile carrier and the growing number of MVNOs.
CFO Warwick Bray told ZDNet that Telstra is focusing on mitigating the risk of TPG entering the mobile market by improving its own offerings, decreasing business costs, and advancing its customer service initiatives.
"We're reinvesting in our networks, we're very pleased with that; we're making sure that we're being clear about the benefits of the network; we're continuing to improve our customer service; and we've also launched the five-band Belong; and we're also continuing to take costs out of our business; and we're focused on providing the best possible services for our customers," Bray told ZDNet on Monday morning.