News Pulse for June 21, 2018

A daily download of SME, startup, fintech and tax news from around Australia.

What Telstra’s strategy changes mean for consumers

Telstra customers will soon be able to wave goodbye to excess data charges and overly complicated plans, as the telco committed on Wednesday to simplifying its options for consumer, small business and enterprise customers and offering unlimited data at capped speeds.

Its users are on one of up to 1800 plans, but these will be reduced to just 20 within the next three years .

Australian jobs growth could be about to slow even further

Australian employment growth is averaging 12,400 per month, well below the 34,300 level seen in 2017.

The Department of Jobs and Small Business Internet Vacancy Index fell 0.9% in May, the third monthly decline in a row.

Suggests the RBAReserve Bank of Australia might be wrong about “forward-looking indicators of labour demand … point to employment growth”.

The market doesn’t like Telstra’s plan to cut 8,000 jobs and save $1 billion

Telstra is losing 8000 staff over the next three years, stripping out several layers of management, as the telco prepares for a more competitive world.

The major restructure includes a separate infrastructure company with a book value of $11 billion, setting up Telstra to be able to spin off a new company.

Telstra will also simplify its product offerings by retiring 1,800 consumer and small business plans and replacing them with 20 core plans.

With his job on the line, Telstra chief rolls out a radical and risky plan

Andy Penn would have been well aware that his fate and the medium term future of Telstra hung on his strategy presentation today. Incremental change would save neither and so he has unveiled the most fundamental change program Telstra has embraced since the Sol Trujillo or Frank Blount eras.

He would have been disappointed, perhaps shocked, by the reflex response of the sharemarket to his presentation, although judgements might change once there has been time for its detail to be digested.

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