Telstra is a goer
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I'll be happy to take it off if its not Grandma
Broadband battle after national broadband network deal Mitchell Bingemann From: The Australian June 22, 2010 11:00PM Increase Text SizeDecrease Text SizePrintEmail Share
Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?THE battle for broadband customers will intensify over the next three years as Telstra and its competitors wage a marketing war.
The telcos will need to lock in new internet users ahead of construction of the national broadband network (NBN).
Since the non-binding $11 billion agreement between Telstra, the NBN Co and the government to secure the telco's participation in the $43bn national-fibre network, analysts say Telstra will need to differentiate its service products and evolve into a more agile player, if it is to remain the nation's dominant telco.
Financial analysts have conceded that to do this Telstra will need to sacrifice the notoriously high margins that have helped underpin its large profit performances over past decades and focus on new streams of revenue.
Goldman Sachs JBWere analyst Christian Guerra predicts Telstra's fixed-line margins will fall from current levels of about 60 per cent to about 25 per cent by 2030 as the open access, wholesale-only nature of the broadband network flattens the telco's competitors' barriers of entry to deliver new and superior broadband services.
The challenge facing Telstra and growing speculation that the Future Fund is preparing to sell down its 10.9 per cent stake depressed the telco's stock performance yesterday, which opened at $3.31 before losing 5c to close at $3.26 for the day.
Future Fund chairman David Murray is evaluating the NBN deal before deciding whether to sell any more Telstra stock, but sources indicate the sale could come much sooner than expected.
The slow trade is in contrast with Telstra's performance on the market on Monday, where it rose 22c, or 7 per cent, to $3.45 in early trade, to ultimately close the day at $3.34 on a four-month high.
Telstra said last night it would co-operate with a probe by the corporate watchdog into movements in its share price ahead of its deal.
There are concerns insider trading may have been behind a surge in the company's share price late last week.
More than $198 million worth of Telstra shares were traded on Friday in what was the busiest day for the stock in two weeks.
The Australian Securities and Investments Commission will investigate the movement in the share price after the matter was raised by opposition treasury spokesman Joe Hockey.
Although Telstra will secure long-term recurring revenues through the lease of its network of pits and ducts to the NBN and through the migration of its customers to the new network, analysts say the surest way to retain its dominance is to lock in new customers to its services.
Telstra already commands one of the nation's largest advertising budgets, with expenditure estimates at about $300 million a year, but that figure could skyrocket as the telco pours in extra cash to lock in more customers.
Should Telstra's agreement with the NBN gain shareholder and regulatory approval, the telco's chief financial officer John Stanhope says it will be three years before the transfer of customers to the new network begins.
That would allow Telstra to launch a marketing push to lock in customers into long-term contracts, according to Optus director of government and corporate affairs Maha Krishnapillai.
"We know Telstra will go very aggressively to lock in customers for the long term," Mr Krishnapillai said. "Telstra will be a mighty marketing machine left off its leash if this all works out the way we expect it to, and let the industry underestimate that at their peril."
Broadband battle after national broadband network deal Mitchell Bingemann From: The Australian June 22, 2010 11:00PM Increase Text SizeDecrease Text SizePrintEmail Share
Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?THE battle for broadband customers will intensify over the next three years as Telstra and its competitors wage a marketing war.
The telcos will need to lock in new internet users ahead of construction of the national broadband network (NBN).
Since the non-binding $11 billion agreement between Telstra, the NBN Co and the government to secure the telco's participation in the $43bn national-fibre network, analysts say Telstra will need to differentiate its service products and evolve into a more agile player, if it is to remain the nation's dominant telco.
Financial analysts have conceded that to do this Telstra will need to sacrifice the notoriously high margins that have helped underpin its large profit performances over past decades and focus on new streams of revenue.
Goldman Sachs JBWere analyst Christian Guerra predicts Telstra's fixed-line margins will fall from current levels of about 60 per cent to about 25 per cent by 2030 as the open access, wholesale-only nature of the broadband network flattens the telco's competitors' barriers of entry to deliver new and superior broadband services.
The challenge facing Telstra and growing speculation that the Future Fund is preparing to sell down its 10.9 per cent stake depressed the telco's stock performance yesterday, which opened at $3.31 before losing 5c to close at $3.26 for the day.
Future Fund chairman David Murray is evaluating the NBN deal before deciding whether to sell any more Telstra stock, but sources indicate the sale could come much sooner than expected.
The slow trade is in contrast with Telstra's performance on the market on Monday, where it rose 22c, or 7 per cent, to $3.45 in early trade, to ultimately close the day at $3.34 on a four-month high.
Telstra said last night it would co-operate with a probe by the corporate watchdog into movements in its share price ahead of its deal.
There are concerns insider trading may have been behind a surge in the company's share price late last week.
More than $198 million worth of Telstra shares were traded on Friday in what was the busiest day for the stock in two weeks.
The Australian Securities and Investments Commission will investigate the movement in the share price after the matter was raised by opposition treasury spokesman Joe Hockey.
Although Telstra will secure long-term recurring revenues through the lease of its network of pits and ducts to the NBN and through the migration of its customers to the new network, analysts say the surest way to retain its dominance is to lock in new customers to its services.
Telstra already commands one of the nation's largest advertising budgets, with expenditure estimates at about $300 million a year, but that figure could skyrocket as the telco pours in extra cash to lock in more customers.
Should Telstra's agreement with the NBN gain shareholder and regulatory approval, the telco's chief financial officer John Stanhope says it will be three years before the transfer of customers to the new network begins.
That would allow Telstra to launch a marketing push to lock in customers into long-term contracts, according to Optus director of government and corporate affairs Maha Krishnapillai.
"We know Telstra will go very aggressively to lock in customers for the long term," Mr Krishnapillai said. "Telstra will be a mighty marketing machine left off its leash if this all works out the way we expect it to, and let the industry underestimate that at their peril."
djuqa
Top Contributor
How could it be a problem????
a link to a website???
Last edited:
How to win friends and influence people
We think we're ok Grandma because if auda had a problem with a link then the whole of Netfleet should be shut down as people are trying to sell domains on the platform.
Gee I bet the boys there are happy with your interpretation of auda
If you have "crazy" for breakfast that is
We think we're ok Grandma because if auda had a problem with a link then the whole of Netfleet should be shut down as people are trying to sell domains on the platform.
Gee I bet the boys there are happy with your interpretation of auda
If you have "crazy" for breakfast that is
Honan
Top Contributor
Honan
Top Contributor
Sorry, I have no idea at all what you mean by any of that
