Australia's Telstra blamed competition and excessive regulation for a long-term share price slump that has delayed a government sell-off of its remaining 51.8% stake, an AFP report said.
The AFP report said at the same time, in a 28-page report to its shareholders, customers and staff, Telstra was building a solid foundation to reverse the decline.
The company's national 3G wireless network was already more than half-finished and A$70 million ($53 million) had been saved by sourcing mobile devices through global supply chain specialist, Brightstar, the report, quoted by AFP, said.
Telstra's share price has plunged more than 25% in the past year, delaying the privatization plans of a government determined not to proceed with a 'fire sale' of its remaining assets, the report said.
The company's controversial US boss Sol Trujillo, who took over in July 2005, has publicly campaigned without success for the government to provide it with greater regulatory protection before it spends more than $3 billion unrolling a new broadband network.
The Telstra report blamed 'excessive regulations that increase costs and/or decrease opportunities to earn new revenues' for the share price fall.
It also said 'increasing competition and changing consumer behavior' had impacted on the financial performance of the business, the AFP report further said.