Telstra's shift from Australia's main fixed-line phone provider to the dominant mobile communications service is continuing.
"I'm pleased to report that business momentum has continued in the last six months," said Telstra's chief executive, David Thodey.
"Very gratifying we are achieving the objective that we set ourselves.
We've grown revenue and profits, and we've also delivered strong customer growth in the half." More than 600,000 new customers for its mobile services, especially its super fast 4G internet network, helped the company increase revenue and made up for the continued fall in fixed line phone connections.
Telstra has sold 1.5 million 4G devices, and brought coverage to two-thirds of the Australian population.
That saw net profit for the half-year to the end of December rise nearly 9 per cent to $1.6 billion.
"These results have been achieved through what I would say is a sustained and disciplined focus on our strategic priorities and, very, very specifically, on improving customer service which is such a key priority," Mr Thodey added.
"While it's still a long way to go, it's sort of the heart of what we do." Network costs The company has also spent nearly $2 billion over the half-year on new technology and expanding its network.
However, David Thodey says Telstra will be hit by more significant costs as it renews its licences for mobile spectrum later in the year.
There is speculation that the company face a bill of more than $2 billion dollars for 2013.
"As much as I'd like to talk about it, I'm actually not allowed to talk about it under confidentiality agreement with the [Federal] Government," Mr Thodey explained.
"The reserve price is higher than what we paid in the past, but it's a very different spectrum, and very hard to make a direct comparison.
"We have said repeatedly we'll be funding any payment on spectrum through debt, and we'll just do that within our normal debt raising program." There is also the pending election on the horizon.
Telstra is getting $11 billion to transfer its fixed line phone network over to the National Broadband Network.
David Thodey was asked what would happen if the Coalition is elected to government.
"NBN and the political situation, we have legislation and a contract in place and that's what we're focussed on," he responded.
"We talked to all sides of politics, as you'd expect, but nothing has changed in what we do on a day-to-day basis, and that really will be my message probably for the next, you know, six, nine months." Over the half-year the company also saved money by closing call centres and sacking people.
Telstra maintained its interim dividend at 14 cents a share, and says its final dividend for the 2013 financial year would remain at that level, but David Thodey would not promise that the payout to investors would continue at that level beyond then.
Telstra shares ended the day up 1.3 per cent to $4.64.