The country's largest telecommunications company assured its investors of the same dividend payment in the 2010 financial year.

Telstra Corporation Limited (ASX: TLS) chief executive David Thodey said, “Telstra's board has always been acutely aware of the importance of dividends to shareholders. Because of our strong free cash flow, Telstra could comfortably fund a 28 cent share dividend in 2010-11.”

Telstra shares have been on the lows amid concerns of the company's capability to compete. In August, the company also announced plans to spend $1 billion to help it attract back market share from rivals Singapore Telecommunications' Optus arm and Vodafone Australia, to improve customer service, and to simplify company processes.

Thodey explained the investment “will help Telstra prepare for the future by taking advantage of new revenue streams, and utilises our recently upgraded IT systems and networks to further improve customer service and satisfaction.”

The company also implemented a program, Project New, to simplify company operations. Under the program, costs on third parties and on operations will be reduced through improving online customer service, field workforce productivity, and simplifying prices.

Telstra aims to have 35 percent of customer transactions to be completed online by the end of 2013. A significant number of jobs are likely to be cut through the measures. Under former chief Solomon Trujillo, 12,000 jobs were cut through the transformation program.