Telstra's price point balancing act

Telstra is trying to convince customers that its services are value for money but the telco probably shouldn't take today's price savvy consumers for granted.

Soon after David Thodey took over the reins at Telstra he announced ‘Project New’. A billion dollars was set aside to make Telstra more competitive. Until that time the company had positioned itself as a ‘premium’ company and that had allowed Vodafone, and in particular Optus, to increase their market share, especially in the mobile market. For the next 18 months Telstra had an aggressive sales and marketing campaign that paid off very well. It became the market leader in the mobile market again (based on growth). Vodafone suffered the most from this campaign and Optus flat lined during that period.

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