Telstra Corp. Ltd. CEO Sol Trujillo Tuesday warned shareholders at the Asia-Pacific telco"s annual general meeting that fixed line revenues continue to fall.
He said the company"s fixed line revenues declined 1.9 per cent in the first half of 2004/05 and by 5 percent in the second half.
"And this decline is accelerating," Trujillo warned shareholders.
He said times were getting tougher for Telstra, which had to find new ways to grow the business.
"The world of the telecommunications business is changing fast and no more so than in relation to our fixed line business where revenues are falling due to increasing migration to mobile services and use of e-mail," he said.
In his first address to a Telstra AGM, Trujillo, who joined the company in July, said the telco"s business was under pressure on various fronts.
"We have pressures that have been building on the business, regulatory decisions that destroy shareholder value, competitive pressures that are increasing, technology changes that must be dealt with and other issues facing the business.
"As a result of pressure from the last few years, revenues are declining in the core business while costs are increasing."
Trujillo has promised to release a detailed strategic review of the company around mid-November.