Where to now for long term investors of Telstra, page-866

I don’t know what it achieves comparing out of date mobile broadband with NBN costs as 5G will change the cost of mobile broadband dramatically. The data throughput capacity for 5G transmission is so dramatically higher than 4G (OVER 50 times) that costs per GB will fall dramatically. Your claiming mobile data is $7 per GB!! Well Telstra sells $80GB per month for $150 - that’s four times less than your claim.

With 5G it will be economical to provide 1000GB plans with a good profit margin for about what we pay for a mobile plan now - around $50 per month though. Most likely packages will be offered for mobile plus home access in a combined plan with say 500-4000GB of combined data for around $100 - one plan, one bill, full data allowance out and about on your phone! No provider can provide that on the NBN as once the NBN connection cost for their slowest real speed (25/5) and CVC cost is taken out there’s nothing left!

The simple fact is that installing and maintaining a 5G tower/transmitter network is cheaper than installing and maintaining millions of km of underground cables and connections into homes, and hundreds of thousands of nodes. FTTN won’t even provide the capacity of 5G, nowhere near it. The only NBN which could compete with be FTTP though they’ll have to drop wholesale costs for connections, increase data rates to 1Gbps, and Brooke cost of CVC data dramatically to stop consumers deciding that they’re already paying for a mobile plan with plenty of speed and data so why should they also pay for an NBN plan.

Most people do most of their browsing/e-mail/watching video/banking etc on their phone now. With the improvement that 5G will offer a very large proportion of people will just let NBN go as superfluous and limiting (as they can only use it when in range of their home WiFi) in the same way as 25% of households no longer have a fixed phone, and I’ll bet most that do have fixed phones only have them because it’s part of their NBN contract and they’ll happily drop it if they take their data onto 5G.