Telstra Corporation Ltd SWOT and PESTLE Analysis

Strength

1. Dominant market position: Telstra is Australia's incumbent and largest provider of fixed-line services.These include home phone, business and other PSTN products. Telstra Mobile is Australia's largest mobile telephone service providers, in terms of both subscriptions and coverage. Telstra operates Australia's largest GSM and 3G UMTS mobile telephony networks,as well as holding a 50% stake in the 3GIS Ltd 2100 MHz UMTS network infrastructure, shared with Hutchison.

2. Strategic differentiation by being the leaders in network: Considerable investments in transforming the next generation of networks as well as in fixed network services.Their 4G networks cover 98% of the Australian population and they are on track to reach 99% of the population by 2017.

3. Investments in latest technologies: In 2016,they enabled the capability to switch on LTE broadcast technology across their entire 4G coverage area thus allowing them to cost effectively broadcast high quality video media to a number of metropolitan and regional areas around Australia.They also launched Australia’s first Voice over LTE(VoLTE) service that allows voice calls to be carried on the 4G service for the first time.They are also planning in-field trials across metropolitan and regional areas for narrowband Internet of Things(NB-IoT) technology.

4. Expansion in key markets: Telstra is pursuing new opportunities in key markets like Asia through Telstra Health,Telstra Software Group and Telstra Ventures.Through Telstra Health it offers technology services designed to reduce inefficiencies,improve productivity and increase quality of HealthCare. Through Telstra Software Group it aims to create long term global growth in markets adjacent to Telstra’s core business. Through Telstra ventures, it continues to invest in high growth technology companies.

5. Cordial relations with regulatory bodies: Telstra communicates regularly with governments on a range of commercial, policy, regulatory and other matters in the interests of its shareholders, customers and employees.It has a Regulatory Affairs team which manages its relationship with statutory regulators and industry bodies.

Weakness

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Opportunity

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Threat

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Political

1. Government pushing for regulatory reforms: Telstra which is the flagship telecom company of the Australia, also enjoyed the government support for long even after it was privatized but since last couple of years Infrastructure Australia calling for a reform in the Universal Services Obligation. This is favoring the government backed National Broadband Network. The political push backed by legislations will mean that Telstra will progressively sell its copper and HFC networks to NBN and the telecom industry in Australia will be open reducing entry barriers for new players.

2. Australia's cordial global diplomatic relations: Australia enjoys warm and cordial relations with most of the countries globally and this has translated into immense business opportunities for the country and its organizations. Telstra also has benefited from Australia's diplomatic relations and also its strategic geographical location has allowed it to develop the infrastructure for the largest submarine cable network in the Asia Pacific, accounting for up to 30 per cent of active intra-regional capacity.

Economic

1. Subdued GDP due to falling commodity prices in Australia and NZ: Subdued GDP due to falling commodity prices in Australia and NZ and subsequently lower income generation to impact telecom growth. Inflation has been quite low and cyclical unemployment has further pressured the economy. Further, according to 2017 forecasts, Chinese demand for key Australian commodity exports, Iron Ore and Coal is expected to decline and will lots of excess supply, the prices can go further down. This does not bode well for the Australian economy and the telecom sector.

Social

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Technological

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Legal

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Environmental

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