Telstra 4G service influences booming profit

Telstra is getting ahead of its rivals as it signs up a litany of customers for its 4G network, which is being reflected in its bank balance.

Figures released today (February 7) show that the telco giant increased its first half profits by 8.8 per cent, jumping to $1.6 billion.

Chief executive of Telstra David Thodey said that the performance can be attributed to appropriate spending.

Mr Thodey elaborated that customers are more inclined towards mobile devices and as a result, Telstra is developing its customer service for that purview

He explained: "Our investment in the mobile network is attracting more customers. We have now sold 1.5 million 4G devices and we are on track to expand 4G coverage to 66 per cent of the Australian population by June 2013."

Analysts told The Australian that they expected this jump in profits given that it has a dominant position within the marketplace for its broadband and mobile network and has a low cost position.

Speed and network coverage is also a factor as well.

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Posted by Eve Gillespie