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2010-08-16

How to make Telstra profitable?

Comments on Alan Kohler “Telstra's dividend danger”, 16/08/2010, http://www.businessspectator.com.au/bs.nsf/Article/telstra-nbn-google-android-apple-pd20100816-8CSYJ?OpenDocument&src=rot
No doubt Telstra has to change its business model altogether. It should move beyond the traditional communication infrastructure provider and focus on how to be a successful service provider.

It could also move to other businesses than communication, as long as it increases its value and profits.

For example, when in the height of the GFC, had Telstra moved to invest in Rio Tinto using its revenue and finance available, what would have been its bottom line now? That would not need too much experience and business acumen!

It should abandon the current rigid thinking, management and operations.

Telstra has been draining shareholders; value for too long.

Its board and management must change their mindsets. They need to be innovative and creative.

They need to combine technical engineering with financial engineering!

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