BUSINESS REPORT. INTRODUCTION. Telstra Corporation Limited is an Australian based telecommunications company that was founded by the Aussie’s government in 1975. It is one of the first companies to be established by the Aussies government and its success is always emulated by other established organizations across the world. It has been, and it is still the dominant provider of telecommunications services in Australia. Some of the products offered by the Telstra brand include; voice services, mobile telephony, Internet services, pay TV, fixed line services which it has already established a foothold both locally and internationally.
Telstra’s mobile telephony division which was the first mobile carrier in Australia, is Australia’s largest mobile service provider with a subscriber base exceeding twenty million, it has the most advanced network offering 3G technology to it’s subscribers and with the recent launch of the Next Generation network, it is in a position to offer value added services such as mobile television and other generic internet services. Telstra also provides the national internet backbone which it mainly trades to less smaller companies for re-sales, it also provides IP & data transport for the international clients.
It also owns the largest cable internet backbone trading under the name “big pond” which has over two million subscribers and it also owns & manages a host of top of the range retail shops for its mainstream products. Despite it’s tradition products, Telstra has been very dominant in new markets such as the collocation services, internet access and hosting. However not everything has been going well for the telecommunication behemoth in recent times, on 26th November 2008 Telstra submitted a tender issued by the federal government to build a National broadband network which was envisaged to cover 80-90% of Australia’s major cities despite the requirements being 98 percent, as a result Telstra was removed from the national broadband Network which subsequently resulted to its shares making the largest decline on a single day in it’s history. With Telstra’s market share, history and reputation, most of its executives had a perception that if they can lose on such a major project such as the National Broadband Project, then the same could be replicated across its entire product portfolios and this could seriously harm the companies future profitability.
Executives at the company argued it was time now to move ahead and forget the past, it is this living in the past that brought unnecessary pride that led to violations of rules and regulations in the tendering process. A series of meeting were held to brainstorm on the way forward and one of the suggestions was to expand beyond its borders. It was unanimously agreed that international expansion was one of the quick remedies for the telecommunication giant and now the main question was which particular region and country to begin with.
There were quite a number of different suggestions such as Africa, Latin America, Europe, North America and Asia. But going with the recent developments Asia was the region that was experiencing the fastest economic growth and since the business climate there was very favorable the question there was which particular country. After some considerable thoughts Thailand was chosen to be the country of choice, a number of reasons were tabled and it was very convincing that it should be the country to look at.