Telstra are finished. As new networks with new technologies get built there will be no need for copper. We can already see how cheap phone calls are around the world. It wasnt that long ago that 56K modems was the fastest speeds available to the layman customer. For the large companies it was expensive conenction through Telstra services. Now everything is digital data based, dirt cheap and fast. The margins are getting smaller and smaller. Anyone who thinks Telstra is gong to maintain the monopoly they've enjoyed in the past, doesnt understand the technological and infrustructure advances.
Telstra, by regularly raising wholesale prices is just encouraging competition to explore and introduce alternate infrastructure.
The only thing holding up Telstra is their dividend. They have had to delve into reserved funds to maintain this, reserved funds are finite. The real question is how the government will proceeed to offload the remaining ownership of Telstra. Once this is achieved and the dividend cut what is left for Telstra?
Just watch this evolve. Tricky times ahead for Telstra (and other telecommunication players).
Cheers
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