Telstra, largest phone company in Australia, says it can maintain its annual dividend payout, while it devises a new strategy to boost profit.
At an annual investor briefing, chief executive David Thodey told shareholders the company can comfortably pay an annual dividend of 28 cents per share because of its strong free cashflow.
Telstra will spend $A1 billion to increase its market share by meeting demand for its mobile and digital television services and simplifying its systems.
The company has been cutting prices for mobile phone and internet services to stem a loss of customers who have been abandoning traditional fixed line services.
Mr Thodey said Telstra will continue to seek new profit growth, regardless of any role in the Australian Government's $A43 billion National Broadband Network.