Yes if every one of Telstra’s competitors thinks this is great news I fail to see how it’s likely to be a positive for TLS shareholders. I’m of course happy to consider any convincing argument in the affirmative. I don’t hold, not ramping one way or the other nor do get any pleasure in seeing people lose hard earned savings.
Did Telstra shareholder buy its assets or not. It appears they did not because it has been a political football since they bought the first lot and now they are being told what type of company they are supposed to be. If this company was dramatically failing to provide service there might just be an argument for intervention. If it is overcharging for less than best practise then normally that would provide an opportunity for new players to get involved.
No one seems to want to play that game instead government seeks to pull it apart spend large amounts of taxpayer money on new infrastructure and then hand it’s competition whatever preferred model they currently want at Telstra shareholders expense. Who’s to say any of these competitors will be ultimately happy with that? If whatever comes out of this doesn’t fit their profit profile and investment scenario why wouldn’t they demand the government rearrange the playing field yet again?
The market seems to be moving away for copper landlines to wireless anyway.
Good Luck holders and watch the shorts
TLS Price at posting:
$3.11 Sentiment: None Disclosure: Not Held
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