Telstra forecasts profit may fall 10 per cent

Telstra said it expected a decline of between seven per cent and 10 per cent in earnings before interest, and tax this year. The news sent Telstra's share price tumbling by more than five per cent to $4.34, the stock's lowest price since May 2003. Telstra blamed the accelerating decline in revenues from its fixed line business and increased competition from capped mobile phone plans, as well as regulatory measures.