Telstra indicated its cost savings for the first half were $172 million while cost pressures, or the cost of chasing market share and revenue growth, were $274 million. "Telstra's costs of chasing market share exceed its cost reductions," it said. "This tells us two things - the cost reduction target of $600-$800 million will not be achieved while Telstra is chasing revenue growth and it will need to keep investing if it is to improve its revenue growth profile.