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Penn's radical turnaround is starting to bear fruit for Telstra

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25.06.2019

Relentless competition and herculean NBN headwinds has forced Telstra’s Andy Penn to respond radically. His decision to throw out the traditional playbook on mobile phone plans is the latest manifestation - but it’s only one element of the major strategic overhaul that Telstra had to have.

Until recently most smart investors had written off Telstra as ostensibly a large dumb pipe company, which had its massive cash flows disrupted by the National Broadband Network.

Telstra CEO Andy Penn says the company is taking some necessary pain with its restructure, to get match fit for the new era.Credit:Peter Braig

Sure the cash flows are still under threat as customers migrate to the NBN network and broadband margins get squeezed to a slither, but for the first time in years there are some early signs that Telstra is catching a break.

In other words, Telstra could be losing its pariah investment status.

On the back of a near 50 per cent increase in its share price over the past year, this week........

© Brisbane Times