He said Telstra had a new three-year strategy to expand its 5G coverage and capitalise on major shifts in how its customers live and work in the post-coronavirus pandemic world.
Penn has pinned the telecommunications giant’s future growth on a plan called T25 due to officially begin on July 1 next year when the current T22 project concludes.
“T22 has been one of the largest, fastest and most ambitious transformations of a telco globally and today we are a vastly different company,” he said in a statement as Telstra investors gathered on Thursday for a virtual meeting.
“This means we are poised for growth as our society and economy increasingly digitises and we all work, study and transact and get our entertainment online.
“If T22 was a strategy of necessity, T25 is a strategy for growth.”
Telstra is seeking extra cost savings of $500 million on the road to underlying earnings – or earnings before tax, depreciation and amortisation – in the mid-single digits and earnings per share in the high teens between 2021 and 2025.
It will also expand its 5G mobile network coverage to 95 per cent of the Australian population, which includes boosting links for regional communities.
“As a result, we expect 80 per cent of all mobile traffic to be on 5G by FY25,” Penn said.