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Monday, June 3, 2013

Aussie telco changing tack

At last the consumers’ message has got through

More needs to be spent on maintaining and improving networks, and less on chasing new customers, says Optus boss Kevin Russell.

Russell went on to say that the Australian telco industry has gone backwards in the last six or so years, with an increasing number of customers registering dissatisfaction with their service.

Optus needs to focus more on improving its service for existing clients, so will be cutting costs in other areas.

Marketing will no longer be a priority, with anticipated closure of 45% of its stores.

“We are reducing our marketing budget this year,” he said, going on to state that it didn’t seem to make sense to spend dollars on marketing, “when your core service needs to get better.”

Not before time, I say, and predict that cutting back on marketing to consolidate the consumer base by providing a better service will become a worldwide trend.

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