Telstra looks to expand VoIP to mobile

Telstra CEO David Thodey told retail shareholders in Sydney yesterday that the company was looking to expand its Voice-over-IP (VoIP) offering beyond small business to consumers soon, and would even look at offering VoIP services on mobile.

In May 2011, Telstra embarked on a massive Quality-of-Service (QoS) upgrade to 1600 exchanges across the country ahead of the launch a Digital Business package to business customers that included VoIP services.

At the time, Thodey said that Telstra wasn’t ready to offer a VoIP product to customers, like its rivals such as iiNet and Internode, because VoIP wasn’t to the level of “quality or reliability” that the company would be satisfied with.

Today, however, Thodey admitted he himself used VoIP “sometimes”, and said that Telstra would soon expand the offering beyond just business customers.

“We will be taking it out to a broader consumer base. We’ve just got to pick the right time for that because it is just balancing the market trends and then just how we’re responding to it,” he said. “There will also be a VoIP service on the mobile phone at some point as well.”

Thodey said that Telstra had to ensure that it would get the pricing right.

“Now the charging model is what we’re working on at the moment and we’ll come out with that in the next six months.”

While much of today’s retail shareholders meeting focused on customer service, or individual shareholder issues, chief financial officer Andy Penn was also questioned on whether Telstra would ever buy back shares. Penn said that for now the company was choosing to invest half a billion in its Long-Term Evolution (LTE) 4G network.

“At the moment, our first decision has been to invest half a billion in extending our LTE
network,” he said. “Building on that when we can afford to do that is the right opportunity.”

But Penn admitted that a buy back was possible.

“The short answer is that it is definitely an option available to us. Over the longer term what is most important to our shareholders is paying a fully franked dividend of at least 28 cents.”

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