The Australian telecom sector has seen its economics severely impacted by the introduction of the NBN. Investors will lament various different factors, however the overwhelming negative impact on the sector has been the way the NBN has been implemented in this country.
Through government policy, politicians have sacrificed shareholders for the benefit of voters. However they fail to realize, that particularly as it relates to Telstra, their voters are those same shareholders. The voting public who are for example either Telstra, TPG and/or Vocus shareholders must make their voices heard.
The telecom sector has been forced to adopt new operating conditions, which have been forced upon them. So I ask if the operating conditions have been changed, why have the competition regulations not been amended to reflect these new conditions.
If politicians want to take revenue and profitability away from telecom companies, then allows these companies to merge so that they have some hope of maintaining appropriate returns on equity for their shareholders. This has to be a process of give and take, not just giving by these telecom companies and their shareholders.
VOC Price at posting:
$2.44 Sentiment: None Disclosure: Not Held
