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Telstra has faced competition since the early 1990s from Optus (Australia's second largest communication company) and a number of smaller providers.

Telstra once retained ownership of the fixed-line telephone network, But since the nationwide upgrade to the National Broadband Network (NBN) The Australian Government now has legal ownership of these lines, Though Telstra has played a big part in this upgrade supplying resources to the government, which has earned Telstra priority on the new network.

In 1992, the Overseas Telecommunications Commission, a separate government body established in 1946, was merged with the Australian Telecommunications Corporation into the short-lived Australian and Overseas Telecommunications Corporation (AOTC) which continued trading under the established identities of Telecom and OTC.

The AOTC was renamed to Telstra Corporation Limited in 1993.

The Australian Telecommunications Commission (ATC), trading as Telecom Australia, ran domestic telecommunication services.

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