Omdia view
Summary
On May 27, 2025, Telstra unveiled its Connected Future 30 strategy ‒ a five-year corporate roadmap to 2030 designed to maintain its competitive edge and lead the next wave of AI-driven digital transformation. The strategy is anchored around three strategic pillars: nationwide investment in low-latency connectivity infrastructure, the development of AI-powered programmable networks, and the delivery of personalized, data-informed customer experiences in an increasingly hyper-connected landscape.
Analyst view
Artificial intelligence (AI) technology is set to drive digital transformation across various industries, including businesses, economies, and consumers’ lives. Telecom service providers worldwide are formulating strategic plans to encourage and enhance innovation for a connected society by leveraging the vast potential of emerging AI technology. Despite the rapid advancement of AI and its applications, the pivotal question remains whether telecom service providers have robust strategic plans in place for the next five to seven years that effectively meet the complex digital demands.
Telstra sensed the need for a strategic roadmap and unveiled its Connected Future 30 strategy. Telstra’s strategic announcement is widely regarded in the industry as a significant investment in AI technology, presenting a unique opportunity to evaluate and scrutinize its network capabilities for potential gaps and challenges. Telstra aims to implement AI extensively to position itself as a global technology leader. During the investor day in Sydney, Telstra’s CEO, Vicki Brady, highlighted the importance of AI in this initiative, noting that emerging technologies, such as 6G and autonomous systems, will heavily depend on advanced low-latency connectivity solutions.
The three pillars of Telstra’s Connected Future 30 strategy are as follows:
- Investment in low-latency nationwide fiber network connectivity infrastructure. Telstra is preparing to make significant investments in its national fiber connectivity infrastructure, with a key focus on the establishment of a 14,000-kilometer high-capacity, ultra-low-latency intercity fiber network, alongside plans for expanded mobile coverage. This initiative aims to address future data demands and support the evolving ecosystems of cloud services, 6G technology, and AI innovation. While Telstra’s strategic vision is ambitious, it has yet to fully address the gaps in mobile signal reception across many Australian urban areas.
- AI-driven, programmable networks. Integrating AI into intent-based network operations enhances operational efficiency, ensures an excellent customer experience, and aims to build a fully autonomous network capable of self-maintenance, self-optimization, and self-healing, thereby improving service delivery. However, while the ambition of autonomous networking is commendable, challenges such as workforce reduction, upskilling existing staff, and integrating multiple vendors and layers may hinder genuine network openness.
- Customer engagements. Telstra is committed to strengthening customer engagement in an increasingly hyper-connected world. Central to this vision is the enhancement of its Network Experience Index to provide greater bandwidth for customers and support their evolving needs. This strategy will help to keep the network free of congestion during peak times and help it transition from reactive support for customers to a more personalized, proactive service model.
In summary, Telstra’s Connected Future 30 strategy strengthens and maintains its legacy position as a leading digital provider, especially in the Australian market and among the top global telco service providers. However, Telstra must carefully balance its ambition with precise execution, especially as rival service providers and cloud hyperscalers continue to integrate AI more rapidly—and, in many cases, are already outpacing traditional telcos in innovation and service agility.
However, Telstra must strike a balance between its ambition and the precision of its flawless strategy execution, considering that competing service providers and cloud hyperscalers are already integrating and surpassing telcos in AI innovation and agility within their service offerings.
Appendix
Further reading
“Without multivendor and multilayer integration, IP and optical convergence will fail in the AI era” (April 2025)
A Blueprint for Modern IP Transport Networks in the AI Era (February 2025)
Author
Sameer Ashfaq Malik, Senior Principal Analyst
