Question 1

Why is revenue falling even though Telstra is adding more customers?

Accepted Answer

Total income declined 10.4% to $12 billion because volume gains, including 80,000 new post-paid mobile and 196,000 NBN connections, were insufficient to offset ARPU erosion. Competitive intensity in both fixed and mobile markets continues to compress margins across all primary product categories.

Question 2

How is the company funding the expensive 5G rollout?

Accepted Answer

Telstra is reviewing the deployment of capital in passive assets, specifically targeting a tower asset sale expected to generate between $4 billion and $5 billion. This capital recycling supports the goal of reaching 75% of the population with 5G coverage by June 2021.

Question 3

What is causing the significant drop in enterprise earnings?

Accepted Answer

The 20.0% decline in EBIT is partly driven by a 7.2% drop in Data and IP connectivity revenue within the enterprise segment. This weakness stems from a major technology shift as customers migrate from legacy copper-based services to lower-priced IP-VPN and SD-WAN solutions.

Question 4

Is 5G adoption actually happening at scale?

Accepted Answer

The network currently supports 1 million 5G devices, indicating rapid hardware uptake among the subscriber base. However, this transition has not yet translated into revenue growth, as mobile ARPUs remain under pressure from market competition.

Telstra 1H21 update reflects industry trends

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