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TLS - Telstra Corporation

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fiftyeight said:
Why do carriers allow companies like Boost to use their network?
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I think if you could dig deep enough you would find Boost is Telstra. The thing is Telstra know they will lose market share to telco's that are not price gouging to the same extent, so by having a sub-company like Boost, they get to keep market share and just accept a more normalised margin for those customers. Better to make a bit less than lose them altogether! There are some hints, even the billing is run by Telstra, my Boost recharges show up as 'Telstra' on my credit card.

Dont forget the taxpayer largely subsidised the Telstra Mobile Network too, so it doesnt owe them much. Thats how they were able to get the penertration into the remote and regional market ahead of other telcos.

Another example is Belong for NBN, cheap and nasty NBN ISP, but its a similar arrangement to boost, its Telstra really and this way they get to make margin where otherwise the customer would have gone to a non-telstra, cost effective alternative. There are only so many people you can fool into paying 30-40% more for the same service with inferior support!
 
galumay said:
I think if you could dig deep enough you would find Boost is Telstra.
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I originally assumed that, but a quick look their wiki page suggested different. Could be wrong.

Founded by Peter Adderton and was originally on the Optus network made me think at least at first it was not owned by Telstra.

Definitely can see the business case for the 2nd tier to their business model (if Telstra do own Boost or a at least a large part of it) that is more reasonably priced but surely would restrict it somehow to preserve your regional and remote dominance?
 
fiftyeight said:
but surely would restrict it somehow to preserve your regional and remote dominance?
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I think they would run foul of the ACCC if they tried to discriminate against regional/remote just to preserve their price gouging.

Also remember a significant % wont look elsewhere, I still here people say all the time "Telstra is the only provider that works here for mobile service", so they keep their ripoff margins with all those customers, the ones that go to Boost, they at least still get the wholesale revenue and it discourages Optus/TPG etc from investing in remote infrastructure, because unlike Telstra there is no taxpayer subsidy and they can see there is already availability of a cheap alternative via Boost.
 
Telstra is now less than half its market capitalisation than three years ago. And that's with the high margin monopoly it was handed by the LNP for the NBN. Dividends are tipped to be about 10cps in 4 years.

Some would say the NBN deal killed off the lucrative wholesale side of the business, but that would have happened anyway, especially if Labor's plan had been embraced.
 
Users will be departing in droves.

3 years back I disconnected my phone, 18 months ago connected to Kogan. Now have phone (unlimited calls and texts) and ipad with 16 gig tethered to the phone, for $21 a month on a 12 month contract. Only use about 9 gig so I'm laughing.

Feel for many innocents with such firms in their super. But then who cares for others, just party
 
Thodey maintained the public appearance of positioning Telstra as a company that valued customers and would provide them with better service than they previously received. Trujillo never understood government relations but he invested in building a network that would put Telstra ahead of its competitors. But the competitors have caught up and customer service is slipping. Penn has a lot to answer for in terms of the destruction of shareholder wealth.
 
IMO Telstra shot itself in the foot years ago, by not looking to diversify, it got too locked into Foxtel.
Which in turn made it locked in to Murdoch, who really only has his own interests at heart.
They should have off loaded Foxtel and bought into a T.V station, then had a vehicle ready and integrated for internet t.v, be it over the air or hard wired.
Just my opinion, but now all they are is a re seller, with higher customer costs due to Country coverage.
Where they are going to get growth from is anyones guess, Vodaphone and Optus don't require much margin, they have large overseas markets.
 
Their four key pillars as outlined in their Market Release announced today don't sound too revolutionary or innovative:
  • Radically simplify our product offerings, eliminate customer pain points and create all digital experiences
  • Establish a standalone infrastructure business to drive performance and set up optionality post the nbn rollout
  • Greatly simplify our structure and ways of working to empower our people and serve our customers
  • Industry leading cost reduction programme and portfolio management
It's a tough sector to be a part of these days. TLS are just too big and too unwieldy to compete effectively with smaller, more efficient companies IMO. The big margins are gone from telecommunications. It's a different world in 2018.
 
no expert here, a lot of value gone, but the structural separation was was due to be done next week (government enforced thing) has been delayed till 2020 or something so makes it confusing for me. It is not till then that the NBN restrictions and legacies will be gone (unless NBN funding/ownership falls in a hole in 2020 and what happens then?) If this infraco thing flies - on the back of telstra 5G (and 6G?) then future prospects are prolly good as telstra can stop being an NBN lapdog and compete....just unsure when that future is atm, and what it looks like - but it will certainly have to be more lithe.
 
Telstra lost the battle 25 years ago, the advent of ADSL was the beginning of the end for them, they had enjoyed a monopoly moat, they missed the point that legislative moats can disappear at a whim, they could have built a moat with customer service and support - instead the services they offered were generally not superior and the customer service for all of my adult life has been absolutley appalling.

Any business that is so arrogant as to dismiss customers as irrelevant annoyances will eventually wither and die. Its too late now, the monopoly is gone, they have no moat with either brand or customer service and support so its just a slow uwind to the end IMO.
 
In stead of being part of the solution they chose to be part of the problem, dragged kicking and screaming into the future, going forward they are best positioned to maintain their leadership in mobile, 5G is a whole new ball game and they have the resources (deep pockets) and expertise to deliver.

This is one of the once in 20 year things, the whole telco sector has fallen like 55% or so, its a cyclical low. The S&P/ASX 200 Telecommunication Services Index - XTJ has fallen 55% top to bottom, back to near post GFC lows = its time to go deep and go long.
`
 
So_Cynical said:
its time to go deep and go long.
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Maybe, if so which company would you back to give you significant returns? I cannot see any chance of it being TLS. Its a crappy sector with tiny margins, I think there are much easier hunting grounds!
 
You are right So Cynical, but if Telstra spend big on 5G, will the ACCC step in yet again and re regulate access?

I wouldn't be suprised in 20 years, if Telstra isn't bought out by Optus(Singtel), or Vodaphone.
 
So what will be the drivers of growth for TLS in the future? They currently have a market cap of ~$33 billion. What is the telecommunications market worth and how would Telstra go about clawing back market share?
 
iinet support staff are south African - you can understand them and they can understand you. Maybe that will be the new thing for TLS - support staff who speak and understand English. Sound crazy, I know.
 
greggles said:
So what will be the drivers of growth for TLS in the future?
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The industry in general? It's pretty hot still.
I'm thinking this was a low. Not expecting sky rockets but people will want the div for a little while longer you'd think.
 
notting said:
The industry in general? It's pretty hot still.
I'm thinking this was a low. Not expecting sky rockets but people will want the div for a little while longer you'd think.
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You could be right, Ive thought along that line, but it is risky. IMO
TLS still own the infrastructure and from my understanding, NBN lease it.
So maybe the wholesale section is worth something, that is unless the NBN are buying the backbone, rather than leasing it.
How you value it, is beyond me.
 
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