Telstra Unveils ‘Connected Future 30’ Strategy with AI, Major Fibre Investments to 2030

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Telstra Group Ltd (TLS.AX), Australia's leading telecommunications provider, unveiled its "Connected Future 30" strategy on May 27, 2025, during its Investor Day in Sydney. This five-year plan builds upon the company's previous T22 and T25 transformation programs, focusing on integrating artificial intelligence into network operations and expanding digital infrastructure to meet escalating data demands.
Strategic Focus on AI Integration
The "Connected Future 30" strategy is anchored on three primary objectives: enhancing customer engagement, transforming the network into a programmable product, and solidifying Telstra's position as Australia's premier digital infrastructure provider. CEO Vicki Brady emphasized the centrality of AI in this initiative, stating that future technologies, including 6G and autonomous systems, will rely heavily on advanced connectivity solutions.
Telstra plans to maintain annual capital expenditures between AU$3.2 billion and AU$3.4 billion, with an additional AU$500 million allocated for strategic projects. A significant portion of this investment will fund the development of the Intercity Fibre Network, a 14,000-kilometre high-capacity, ultra-low latency fibre optic network connecting major Australian cities. The first segment, linking Sydney and Canberra, is scheduled to commence operations on June 25, 2025.
Collaborations to Enhance AI Capabilities
In August 2024, Telstra expanded its partnership with Microsoft, acquiring 21,000 Microsoft 365 Copilot licenses to bolster its workforce's productivity. Additionally, Microsoft has entered into agreements to utilize Telstra's Intercity Fibre Network to support its AI infrastructure in Australia.
Furthering its AI ambitions, Telstra announced a joint venture with Accenture in January 2025, aiming to accelerate the company's data and AI roadmap. This collaboration focuses on modernizing data platforms and promoting responsible AI practices.
Operational Adjustments and Financial Outlook
As part of its strategic overhaul, Telstra disclosed plans to reduce its workforce by up to 2,800 positions by the end of 2024, primarily within its Enterprise division. This move is projected to save the company approximately AU$350 million.
Despite these changes, Telstra reaffirmed its financial guidance for the fiscal year, targeting earnings before interest, taxes, depreciation, and amortization (EBITDA) between AU$8.5 billion and AU$8.7 billion.
Addressing Network Coverage Discrepancies
Telstra's claim of providing mobile coverage across three million square kilometers has come under scrutiny following a government-commissioned audit. Preliminary findings suggest that certain areas lack signal reception without the use of external antennas, contradicting Telstra's assertions of widespread coverage accessible via standard mobile devices.
Market Response
Following the announcement of the "Connected Future 30" strategy, Telstra's share price experienced a slight decline, reflecting investor caution amid the company's ambitious plans and operational adjustments.

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