Moreover, Winn said Telstra will spend more than A$1.5 billion on "IT transformation".

"I'm not going to reveal the other parts, because we're in ongoing commercial negotiations," Winn said.

"And obviously we have lot of suppliers that are fighting for the right to be Telstra's preferred suppliers."

He said Telstra will make further announcements in the coming weeks about how the remainder of the money will be carved up.

The announcements are part of the company's overhaul that will include cutting up to 12,000 jobs over the next five years to reduce its costs.