The cost of service contracts and other agreements at the company also increased by 6.7 per cent, amounting to $75 million, as a result of early investment in the project.

A cultural change management program within the company is also underway, with Thodey hoping to create the notion of "one Telstra" among staff.

"That takes time but it's really getting embedded in who we are as a company," he said.

According to Thodey, 'Project New' has allowed for faster decision-making and the ability to respond to market concerns more quickly as a result of a simpler management structure.

"If a customer now wants to get global roaming, they don't have to ring the front of house," he said. "They can go online and use a simple Web form and get that activated. That sounds simple but when you're taking millions of calls each year..."