Telstra Transitions from ‘Best Effort’ Connectivity, Enables Users to Personalize Settings
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- By 2030, Telstra intends to transition from ‘best effort’ connectivity to personalised services.
- The new initiative, ‘Connected Future 30’, seeks to customise services according to each customer’s requirements.
- Customers will have the ability to prioritise network characteristics like speed and security as per their preferences.
- This strategy involves revamping Telstra’s network into a virtualised, software-defined framework.
- Customisation of plans will influence pricing, necessitating new financial models.
An Overview of Telstra’s ‘Connected Future 30’ Strategy
Telstra is poised to reshape its connectivity offerings in the next five years through its ‘Connected Future 30’ strategy. Shifting away from conventional ‘best effort’ services, Telstra plans to provide personalised connectivity solutions tailored to distinct customer needs. This new methodology aims to deliver more advanced and adaptable connectivity options, reflecting the shifting demands of users.
Network as a Service
Central to Telstra’s new approach is the ‘Network as a Service’ concept. This initiative focuses on transforming how value is derived from Telstra’s network by permitting users to prioritise certain network features such as security, speed, and latency. Vicki Brady, Telstra’s CEO, underscored that customer requirements are continuously evolving, which calls for a more customised connectivity strategy.
Tailored Connectivity Services
With the new strategy, customers will have the capability to tailor their connectivity plans by selecting the network features that are most vital to them. This might involve prioritising download speeds for streaming, ensuring reliable upload speeds for video conferencing, or enhancing security for critical business activities. By providing these tailored options, Telstra seeks to offer a more compelling value proposition for its premium plans.
Investment in Virtual and Software-Defined Networks
A crucial aspect of Telstra’s strategy is the investment in virtual and software-defined network capabilities. This evolution will allow Telstra to provide differentiated services and challenge traditional business models. The adaptability afforded by software-defined networks will enable Telstra to design offerings that are better aligned with customer desires and improve return-on-investment.
Effect on Pricing Strategies
Telstra’s shift towards personalised connectivity services will require modifications to its pricing strategies. Chief Financial Officer Michael Ackland pointed out the necessity for new financial models to accurately price the diverse array of network attributes that customers might request. As the network’s complexity increases, comprehending the financial implications of delivering specific services will be essential for Telstra’s financial approach.
Conclusion
Telstra’s ‘Connected Future 30’ strategy represents a major transition in how the telecom provider delivers connectivity services. By concentrating on customised options and investing in state-of-the-art network technologies, Telstra aims to cater to the diverse demands of its customers while ensuring sustainable business returns. This transformation will entail the development of new financial models and a deeper understanding of the costs and values related to network attributes.