Australia's Telstra to cut costs

Telstra Corp chief executive Sol Trujillo, less than a week into the job, has appointed external consultants Bain & Co to review costs at Australia's biggest telephone company, where expenses have risen more than sales over the past five years.

Trujillo, who joined the company on July 1, has appointed consultants from Boston-based Bain, led by partner Andrew Klein, to review Telstra's costs. Greg Winn, who worked with Trujillo at Graviton and US West, has been appointed on a short-term bias to review Telstra's operations.

Telstra is struggling to maintain profit margins as customers switch to mobile phones and internet calls, reducing demand for more profitable fixed-line services.