Telstra’s new Connected Future 30 strategy represents one of the most ambitious attempts yet by the company to move beyond its legacy as a utility provider. As someone who has long commented on the telco’s struggles to transcend its role as a mere “pipe,” I find this latest plan both promising and fraught with significant challenges.
The core of the strategy is to shift from commoditised connectivity to premium, differentiated digital infrastructure. This involves recasting the network as a suite of programmable products, offering features like guaranteed latency, uplink performance, security, and API-driven functionality. In theory, this allows Telstra to charge more for tailored services—effectively ending the one-size-fits-all model.
This ambition is not new. I recall a televised discussion with former Telstra director Ted Pretty around the year 2000, where he enthusiastically outlined Telstra’s bold move to become a high-value tech company. When I questioned the company’s ability to make such a transformation, he challenged me: “So you want Telstra to be involved in dumb pipes?” I replied, “No, Ted—intelligent pipes.” Now, nearly 25 years later, Telstra is finally building those intelligent pipes. But whether it can truly make this model work remains to be seen.
Changing perceptions is harder than changing technology
Telstra CEO Vicki Brady is right to note – that we have discussed here on many occasions – that telcos have historically failed to capture value during past waves of technological change. And she’s not the first Telstra CEO to promise transformation. The Connected Future 30 strategy makes all the right noises about embracing AI, cloud-native thinking, and platform economics. The intent to monetise different network attributes and integrate tightly with enterprise ecosystems—particularly hyperscalers—is a logical evolution.
But success hinges not on technical upgrades, but on market perception and consumer behaviour.
To justify higher prices, Telstra will need to prove to customers—particularly consumers and SMEs—that these new services offer real, understandable value. This is no small task. Australia’s telecom market has been relentlessly price-driven. Most customers won’t pay a premium unless they clearly understand what they’re paying for, why it matters, and how it differs from cheaper offerings. At the same time, this shift toward differentiated connectivity could further undermine any remaining principles of net neutrality—prioritising traffic based on a customer’s ability or willingness to pay more than others.
Large enterprises may have the technical expertise to grasp the value of programmable networks or API integration. But for smaller businesses and households, Telstra will have to invest heavily in education, marketing, and direct sales. AI may help, but it won’t replace the need for person-to-person communication when customers are being asked to pay more for what’s still fundamentally viewed as a utility service.
This shift will drive up costs—at least in the short term—and there’s a real risk of widening the digital divide. If only wealthier customers can access premium network features, then Australia’s commitment to equitable connectivity—as embodied in the original NBN vision—will be undermined.
A strategic shift amid a stagnant market
The underlying problem Telstra is trying to solve is also clear: the telecom sector is stuck. While demand for data continues to rise, returns have not kept pace. Telcos globally have relied on cost-cutting rather than growth to sustain profits. As product and technology group executive Kim Krogh Andersen pointed out, compute and storage businesses scale far better than traditional telcos.
Hence the strategy to “productise” the network—to make pricing more transparent and offerings more modular. If Telstra can indeed demonstrate that a top-tier mobile or fibre plan delivers superior real-time gaming, seamless remote work or guaranteed video quality, then consumers might buy in.
But again, that’s a very big “if.”
The company also emphasised its internal AI ambitions—from customer service automation to AI-optimised software development and network operations. These innovations could yield efficiency gains and cost savings, but they also come with disruption, including workforce reductions.
Brady, to her credit, acknowledges that Telstra failed to monetise previous technology shifts. This self-awareness is refreshing. But given Telstra’s track record, the burden of proof rests squarely on the company to show that this time it’s different.
At the same time, Telstra’s strategy must be viewed in light of a larger existential challenge: the rise of the hyperscalers. Global giants like Amazon, Microsoft, and Google are not just potential partners—they are also direct threats to the traditional telco model. These companies control the cloud platforms, developer ecosystems, and increasingly the customer relationships. In many cases, they are building their own infrastructure, from undersea cables to satellite networks, reducing reliance on telcos altogether. Telstra’s effort to reframe itself as a provider of programmable, differentiated digital infrastructure is, in part, a survival strategy—an attempt to remain relevant and indispensable in a world where connectivity risks becoming invisible and commoditised. (I also discussed hyperscalers here)
A platform or a pipe?
Communications Day’s Grahame Lynch astutely noted that Telstra is not just changing strategy—it’s changing its language. “Network-as-a-product,” “agentic AI,” “API-first infrastructure”—these are the terms of hyperscalers and cloud platforms, not traditional telcos. Telstra no longer wants to be judged on average revenue per user or churn rates. It wants to be valued as a digital infrastructure platform.
It’s a smart move for capital markets. But it may be less compelling for regulators and everyday Australians still locked into old paradigms of universal service, affordability, and public interest. If Australia wants to build a future-proof digital economy, as Lynch argues, then regulators and policymakers must also update their frameworks to engage with this new infrastructure logic.
Final thoughts
I support the direction Telstra is heading in. It’s overdue. But this transformation is not just about upgrading technology or rewriting marketing copy. It requires deep, structural change in how Telstra interacts with its customers and how the broader ecosystem perceives telecommunications, a massive cultural transformation.
Whether Telstra succeeds will depend less on fibre specs or AI tools and more on trust, clarity, and the ability to deliver differentiated services that people actually want—and can afford. If the company can pull this off, it will mark a long-overdue evolution. If not, we risk repeating the past: a bold vision, partially realised, falling short in the face of complexity and inertia.
Paul Budde