Telstra has revealed that it plans to invest an extra $3 billion in the next three years in its network and digitisation.
"Our customers and our networks are our biggest assets," Telstra CEO, Andrew Penn Said. “We have plans for consumers, small and medium sized businesses, domestic and international enterprise users, governments and our wholesale customers. The investment is about setting the pace for the network and company of the future, just as we have done in each of the previous network generations."
Details of the investment program will be progressively confirmed during FY17 to FY19 to maintain strategic advantage, the telco said.
The news comes on the back of the telco’s FY16 financial results which saw its net profit increase 35.9 per cent to $5.8 billion. This also included $1.8 billion from the sale of Autohome shares.
EBITDA took a slight 0.6 per cent decrease to $10.5 billion. Shareholders will also see a return of $1.5 billion through share buy-backs in addition to the final dividend.
Penn said the telco performed well and added new customers across its key products, adding the results were influenced by increasing competition, the changing product mix of earnings and the accelerated roll out of the nbn network.
Its NAS business grew 14.3 per cent, increased profitability and generated annual revenues in excess of $2.7 billion in FY16.
Despite the positive results, Penn said the telco had not made enough progress in improving customer experiences.
“Work still needs to be done to improve our systems and processes that can cause customer frustration and delay, and to ensure that we consistently deliver a great service experience,” he said. “We know that customers expect more from us as their reliance on smart devices continues to grow. This is why improving the customer experience is paramount , and why network interruptions in the second half were particularly disappointing.”