TELSTRA has announced it will shift its focus on online marketing and plans to open a new bath of 100 retail stores adding to the existing 300 all over the country.

Telstra Corp Ltd (ASX:TLS) CEO David Thodey said in a statement to the stock exchange that expanding its Australian presence will be rolled out over the next three years.

The company also said that it would also lessen services outsourced and instead build up its own online customer service unit to reach more customers.

Mr Thodey said the company also plans to widen its social media marketing campaign and would key in on extending better customer service.

According to related reports on the Sydney Morning Herald and the Financial News Network, Telstra has recruited a former senior National Australia Bank technology executive, Gerd Schenkel, to oversee the project. Mr Schenkel, who has been consulting with Australia Post since last year, was the driving force behind NAB's fast-growing online business, UBank.

"Telstra hopes as much as a third of its contact with customers will take place online within two years, compared to just 3 percent today," Mr. Thodey said adding that about 60 percent of banking and airline transactions are done online.

The telecoms company plans to take advantage of the exponential growth of its mobile broadband service due to the government's national broadband network project.