What is Telstra’s T25 Plan?


Telstra’s unveils new strategy 

In 2018, Telstra unveiled their T22 strategy to improve their brand. That strategy was centred on four pillars. For mobile plan customers, two of the pillars were most important – simplify product offerings to improve customer experience, and simplify the telco’s structure to serve customers better.

Now, Telstra have announced that the T22 plan is on track and near completion. This raises the question of what happens next, and Telstra have answered the call – the telco have now unveiled their T25 plan which focuses on four new pillars that build on the success of T22.

In this article, we’ll get you up to speed on Telstra’s T25 plan. Read on to find out what to expect from Australia’s largest telco in the coming years.

How Telstra’s T22 plan made things simple for customers

Telstra have existed for over a century in several different forms. Up until 2011, the Australian government owned the telco but eventually sold off all of their shares. Now, the telco is is the most widely held company on the ASX with over a million shareholders.

With such a huge corporation, it isn’t surprising that Telstra struggled with customer relations for many years. The telco offered a complex variety of plans to both customers and enterprises, and many users often got lost in the maze. The complexities led to frustrations for users and potential customers, both in choosing the right plan and in resolving any issues regarding their service.

Then in 2018, Telstra announced their T22 strategy to solve these issues and more. We mentioned that two of the pillars of that strategy focused on simplifying the telco and its products. We’ve seen several examples of that in action over the past couple of years. 

For instance:

  • Telstra revamped their complex prepaid mobile plan offers into a simpler lineup called Prepaid Max  
  • The telco also refreshed its complex postpaid mobile contract plans into simple, month-to-month plans with no lock-in contracts
  • Telstra then revamped their postpaid plans again this year, changing them to upfront month-to-month plans.
  • We also saw the telco launch commercial 5G in 2019, and Telstra now have the widest 5G coverage in Australia at 75 per cent of the population
  • Telstra also changed their corporate structure by splitting the huge company into four almost independent divisions – InfraCo Towers, InfraCo Fixed, ServeCo and Telstra – all under the Telstra Group umbrella.

These moves have greatly simplified Telstra as a company, as well as the products they offer. Now, the telco is moving on to new T25 plan.

Telstra’s T25 plan

Telstra’s T25 strategy builds off T22, with much of the same end goals in mind. Here’s how Telstra CEO Andy Penn describes it:

“If T22 was a strategy of necessity, T25 is a strategy for growth. And in its implementation, we will be using exactly the same disciplines and governance that we used for T22 – the metrics and the milestones, the roadmaps and the scorecard which we will make transparent to you. And this is why I am confident it will be a success – why change a winning formula when you don’t need to.”

This “growth” strategy will also cut enough costs to put some returns in investors pockets. While the T22 strategyalready committed $2.7bn in cuts, this T25 strategy targets an additional $500mn in cost cuts.

The T25 strategy is heavily focused on further improving customers’ experience, and Telstra plans on leveraging technology to get that done. Their 5G rollout is also a significant pillar, along with work place improvements and localising customer service and call centres.

Here’s a quick look at the four pillars of Telstra’s new T25 strategy:

  • Exceptional customer experiences 
    Telstra plans on focusing on the customer by improving interactions. The telco will fully integrate its channels so that customers can access any channel they want whenever they want, regardless of the Telstra service. To improve on customer experience, Telstra plans to rely heavily on technological advancements like AI and predictive analysis to figure out and resolve issues that a customer may have even before those issues become apparent to the customer. A key point is also being made to bring back call centers and stores to Australia, owned and run by Telstra, so that customers can be sure to interact with fellow Australians whenever they feel the need to. Telstra also plans to significantly expand Telstra Plus, the loyalty rewards program.
  • Leading network and technology solutions 
    Telstra have big plans for 5G, and their T25 plan targets a 5G coverage of 95 per cent of the population by 2025. The telco expects that 80 per cent of all mobile traffic on the Telstra network will be on 5G by that time. 
  • Sustained growth
    Telstra have to answer to shareholders, so they remain a focal point. That’s why the telco is focusing on growth with their T25 plan, and projecting an additional  $500mn in cuts, while improving the bottom line to create more returns and value for shareholders.
  • Preferred place to work 
    Employees are a vital part of any business, and big corporations are no different. Telstra realises that their workers are invaluable resources, and so the fourth pillar of the T25 plan focuses on making Telstra the preferred place to work in Australia. Telstra will focus on the evolving hybrid concept that we’re experiencing these days. With the coronavirus forcing Australians to work from home, companies are now realising that employees don’t necessarily have to be physically at work to actually work. Telstra plans to embrace the flexibility of hybrid ways of work, as well as enhance talent acquisition amongst other points. The telco is also set on continuing their focus on the environment by reducing their absolute emissions with a commitment to become the largest certified carbon neutral business in Australia.

Bottom Line

The T25 strategy is robust to say the least, but also very achievable if Telstra leverage their resources properly. It is a great strategy for growth after a lot of cost cutting, and it covers specific areas that the telco needs to improve on, including a better omnichannel experience and 5G network. 

Perhaps the key is for this giant corporation to maneuver the telco market like a small service provider, and digital technology will play a major role in making that a reality. Now that the telco has split itself into four divisions per the T22 strategy, each of the four branches have the independence to operate like individual small companies, which should simplify operations moving forward. 

Neil Aitken

Having worked in 3 countries for 4 telcos on both voice and data products, Neil is in a position to give you the inside track. Get beyond the marketing messages to the best plan for you.