Business Case Studies, Managing in Troubled Times Case Study, Telstra's Growing Troubles, Is Privatisation the Solution?

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Managing in Troubled Times Case Study

Case Title:

Telstra's Growing Troubles: Is Privatisation the Solution?

Publication Year : 2005

Authors: R. Muthu Kumar, Srinath Manda

Industry: Engineering, Electrical and Electronics


Case Code: TRT0018

Teaching Note: Not Available

Structured Assignment: Not Available

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Telstra, the Australian state-owned telecommunications and information services company, offers fixed and mobile phone services, and Internet access. A failed international venture led to a billion dollar write down resulting in losses and debts for the company. Rising costs and regulatory issues added to its troubles. In order to reduce its debts and turn the company around, the Australian government decided to privatise it. Besides enabling the students to discuss the reasons for Telstra's troubles, this case also triggers discussion on the pros and cons of privatising Telstra and the possible alternatives to turnaround the company.

Pedagogical Objectives:

  • To highlight the Pros and cons of privatising Telstra and its impact on the company.

Keywords : Telstra Corporation; Privatisation; Managing in Troubled Times Case Study; Diversification; Restructuring; Regional telecommunications inquiry; REACH; Pacific Century Cyber Works (PCCW); Voice over internet protocol (VOIP); Wholesale voice; Data and internet connectivity services; Next Generation Cost Reduction phase III (NGCR III); Australian telecom industry; Management turmoil; Sensis – directory business; Rising debts and operating costs; Telstra mobile satellite


  • Telstra: A Brief Profile
  • Troubles
  • Privatization
  • Concerns

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