Telstra mobile customer base doubles Vodafone for FY2012

Telstra ended the fiscal year with 13.8 million customers and $25.4 billion in total revenue.

Telstra increased its telco dominance in Australia, adding 1.6 million mobile customers in fiscal-year 2012 while increasing revenue and net profits, the telco said.

Telstra increased total revenue 1.1 per cent in FY2012 to $25.4 billion and net profit after tax by 5.4 per cent to $3.4 billion. The telco predicted growth would continue in FY2013.

Telstra ended fiscal-year 2012 with 13.8 million customers. By comparison, number three carrier, Vodafone Hutchison Australia, had 6.8 million customers at the end of the first half of 2012, after it shed 178,000 customers in that period.

Telstra added customers in its other businesses as well. It added 203,000 retail fixed broadband customers, ending the fiscal year with 2.6 million. It increased bundle customers by 336,000 to 1.4 million.

Telstra attributed the customer boost to an increased focus in the fiscal year on customer service. The company streamlined bills and released apps to monitor usage and other account details. TIO level 1 complaints about Telstra dropped 26 per cent in the fiscal year, while consumer call volumes dropped 21 per cent, the telco said.

The telco spent $3.6 billion adding 4G LTE services to its national network. Telstra said its 4G services now cover 40 per cent of Australia’s population, and customers have activated more than 375,000 4G devices. Over the next two years, Telstra plans to invest $500 million more on its mobile network and the NBN transit network, it said.

The telco's network application and services revenue increased by 10.5 percent to $1.3 billion as it signed NAB, Australia Post and the Department of Human Services as new customers.

While mobile was strong, the fixed line phone revenue declined 6.1 per cent. Telstra said “regulatory access determinations” were to blame for a decline in wholesale revenue.

“The results of our focus on our customers and simplifying our business can be seen in improved customer feedback,” CEO David Thodey said. “We delivered on our commitments, met guidance and demonstrated greater resilience than other sectors in a challenging market environment. We have achieved top and bottom line growth and expect to do so again in the 2013 financial year.”

Telstra provided a short update on work related to the NBN. “In March 2012, Telstra finalised the NBN agreements with the Commonwealth and NBN Co, including ACCC acceptance of Telstra’s Structural Separation Undertaking, and commenced providing long-term infrastructure access under the Infrastructure Services Agreement (ISA),” the telco said.

“Telstra recently handed over stage one of the transit network (dark fibre and exchange rack spaces) to NBN Co,” it said. “The company continues to work collaboratively with NBN Co on the building of its access network. Telstra has also launched retail and wholesale services over the NBN following successful trials in the early release sites.”

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