New Telco 2.0 Research: How Telstra Responded to Disruption
When Amazon Web Services began deploying in Australia, it was widely expected that the unique hosting ecosystem dominated by Telstra was about to go through a massive disruption. However, Telstra's Network Applications & Services division is growing strongly, and the company's groupwide EBITDA margin is comparable to that of Verizon Wireless. The following chart shows NA&S grew at a 22% annual clip from 2009 to end-2014.
At the end of 2014, their combined Telco 2.0 businesses overtook fixed voice as a source of revenue.
Telstra is a fascinating case study of strategic agility in a market with unique constraints and opportunities. In our latest Telco 2.0 Executive Briefing, Telstra: Battling Disruption and Growing Enterprise Cloud & ICT , we cover their strategic pivot from primarily reselling VMWare and Microsoft Office 365 to an "all of the above" strategy covering OpenStack and Cisco Intercloud technology, as well as VMWare vCloud and Microsoft Azure, and analyse their risky but innovative foray into e-health systems via the acquisition of Dr Foster.