Most important problem of this firm is chasing its conventional ideas and methods that have created issues in its service quality and this firm does not seem to be interested in adopting new ideas for making its services more effective. Telstra’s supremacy and its behaviour of restricting output has also been its major issue from a long time. Most prominent issues of this firm is that it does not focus on innovative idea but carry forward its conventional concept which sometimes limits its service quality as well as production. Regulators have had compel Telstra to expand its wholesale offerings, and another area of concern in this firm is that it has accepted an inconspicuous approach for protecting its retail businesses. As a consequence, service based providers have been badly controlled and restricted to use unbundled network rudiments for developing inventive, innovative and different retail goods and services. Telstra’s incorporated operations are therefore a barricade to novelty across the telecom industry. Increased level of competition has also affected the success of Telstra in the Australian market. There exist several companies that offer a wide range of products and services that are considered to be more effective and integrated and which have enhanced the level of telecommunication industry in Australian market.