Telstra's Creative Use Of Bandwidth Raises Its Customer Experience Game

Clement Teo

Have you ever wondered if your home broadband is being effectively utilized? What if you could squeeze more out of your data allowance when outside your home? Telstra may have cracked this problem in Australia: It will invest more than A$100 million to build a nationwide Wi-Fi network as part of a strategy to increase connectivity in the places Australians live, work, and visit, including cafes, shops, sports grounds, and transport hubs.

The strategy aims to offer all Australians — whether or not they’re Telstra customers — access to 2 million Wi-Fi hotspots across the nation within five years. Telstra home broadband customers can install new gateways that allow them to securely share a portion of their bandwidth with other Telstra Wi-Fi customers in exchange for broadband access at Telstra hotspots across the nation. Non-Telstra customers can purchase daily hotspot access. The network, scheduled to launch in early 2015, will also reach overseas; an exclusive deal recently concluded between Telstra and global Wi-Fi provider Fon will allow people to connect at more than 12 million hotspots worldwide.

What It Means

Telstra has been at the forefront of improving the telco customer experience; its CEO, David Thodey, has been a major driving force behind that. This has put Telstra’s local competitors on notice and provides valuable lessons in how to raise the customer experience game:

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Telstra Analyst Event 2013: Report From The Customer Advocacy Journey Triathlon

Dan Bieler

With Dane Anderson, John Brand, Tim Sheedy, Clement Teo, and Bryan Wang

During his keynote at Telstra’s recent annual analyst event in Sydney, the CEO compared Telstra’s customer advocacy strategy to a triathlon that the firm has just begun. We believe this is a fitting analogy for progress communicated at the event. Our main observations are:

  • Telstra’s transformation remains a work in progress. Telstra is not unique from other incumbent telcos that transform away from traditional — and declining — sources of revenue. Its strong domestic position seems secure for now. But its prospects in new market categories, both inside and outside of Australia, are less certain. Telstra is not particularly innovative compared with telcos in the US or Europe. Yet Telstra benefits from a credible transformation strategy, which it is gradually implementing. For instance, Telstra has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
  • Telstra ought to use its Net Promoter Score to drive cultural change. Its strategic goal to push for world-class customer advocacy is a key differentiator and convincing. However, we believe Telstra needs to use the NPS also as a driver of internal cultural change. For instance, Telstra should analyse transactional processes of device purchasing from branded retail stores. Moreover, Forrester research indicates that NPS has limits when it comes to explaining the “how” and “why” of customer experience.
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Telstra Analyst Event 2013: Many Rivers To Cross

Clement Teo

Telstra hosted its annual analyst event in Sydney on October 23 and 24. In his keynote address, CEO David Thodey compared Telstra’s customer advocacy journey to a triathlon that the firm has just begun, which we believe it a fitting analogy for Telstra’s progress on the path it has set for itself. The company is clearly in the race and making progress, but still has many miles to go.

While the company shared a broad spectrum of initiatives, our main observations are that Telstra:

  • Has made clear progress since our check-in last year, but its transformation remains a work in progress. Telstra is no different than other incumbent telcos working to transform beyond traditional — and declining — sources of revenue. Its dominant position in Australia is secure, but its prospects in new market categories inside and outside of Australia are less certain. We do not believe that Telstra is particularly innovative compared with service providers in the US or Europe, but we do believe that it has a viable transformation strategy and is making progress. Its progress in the Australian media and entertainment industry, including its Foxtel investments, is impressive — it has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
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An Asia Pacific First — The Forrester Wave: Asia Pacific Carrier Ethernet Services, Q4 2013

Clement Teo

Carrier Ethernet aims to provide users with a wide-area service to connect sites, in the same way that asynchronous transfer mode (ATM), Frame Relay, and X.25 services from carriers have done in the past. While end user demand for carrier Ethernet services in Asia is relatively small, it’s growing year over year and is having an impact on service providers’ bottom lines: Carrier Ethernet services currently account for 8% to 10% of service providers’ total connectivity revenues in the region.

For The Forrester Wave™: Asia Pacific Carrier Ethernet Services, Q4 2013, we identified, qualified, and evaluated seven global and regional service providers that offer unmanaged site-to-site carrier Ethernet services to multinational companies in Asia Pacific: BT, Orange Business Services, Pacnet, SingTel, Tata Communications, Telstra Global, and Verizon. Key differentiators include the services that each vendor has on offer, such as flexibility in bandwidth bursting, granularity of access speeds, operational metrics and reporting, network coverage, and service-level agreements.

What It Means

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How Telstra drove global operations through business-led IT Transformation

Charlie Dai

IT complexity hurts business.  This is even more the case when a company has global markets and global operations.  Essential business needs such as a single integrated view of global customers, or consistent product or service portfolio become impossible to achieve. 

Managing IT complexity to support business strategy is a big challenge for enterprise architects at large companieswhen a company has global operations, as is the case for Telstra, an Asia-based telecommunications firm. However Telstra’s enterprise architecture (EA) team addressed its challenges by focusing on customer engagement, improved agility, and global business strategy enablement.  Because of their success, they were one of the six firms to win the InfoWorld/Forrester Enterprise Architecture Award  in 2012. 

In my recent report “Case Study: Telstra’s Business-Led IT Transformation Facilitates Global Operations”, I analyzed the key practices they made to support their business-driven transformation. These practices include
  • Build Capability Maps To Link Business Goals And Transformation Requirements. Business capability maps are a core tool that enterprise architects use to identify their organization’s strengths and gaps and support its business strategy. Architects should leverage industry standard frameworks like eTOM to build a custom map, overlay it with business goals, and use it to assess and prioritize needed changes.
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