Question 1

What is the primary driver behind Telstra's massive cloud migration strategy?

Accepted Answer

Telstra aims to migrate 90% of its internal applications to the public cloud by 2025. This transition is a critical lever for achieving the company's $500 million fixed cost reduction target between FY23 and FY25.

Question 2

How significant is the shift toward 5G fixed wireless in the region?

Accepted Answer

Fixed wireless adoption is accelerating, with New Zealand connections growing 25% year-on-year to reach 276,000. In Australia, 6% of broadband users have already moved to non-NBN fixed wireless solutions, with 30% of that group utilizing 5G technology.

Question 3

What infrastructure investments are supporting the rise in data demand?

Accepted Answer

Telstra is executing a $1.6 billion upgrade to its intercity fibre network to reach a capacity of 55Tbps. Microsoft has signed on as an anchor tenant for this project to support its own digital transformation and hybrid work initiatives.

Question 4

Why are consumers choosing fixed wireless over traditional fixed-line broadband?

Accepted Answer

Speed is the decisive factor, with over 50% of surveyed consumers in Australia and New Zealand identifying faster performance as the main advantage of 5G fixed wireless. This sentiment is fueling the 25% annual growth in FWA connections observed in the New Zealand market.

Telco Roundup of July 2022

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