Ann: Sale of fixed line broadband customer base, page-5

First 5 Last

Share
Profile

Follow
Parma

2,869 Posts.

246

27/10/18

08:44

Post #: 36282361
Share

Originally posted by bayview ↑

"What I don't get is how can Southern Phone which was formed and is still owned by 35 local councils in NSW and employs a headcount of 160 profitably serve those 15k broadband customers to be acquired from AYS when the latter failed to do so despite its highly efficient do-it-yourself technology platform? When did government-owned labour-intensive businesses actually become more cost-effective than young innovative disruptors with highly automatized processes hosted in the cloud? Why would anyone pay $3m for AYS' broadband business converting into $200 per customer when that segment has actually been incurring losses, especially for a rather price-sensitive customer base?"

Those are questions for David Joss (MD) & the independent board of directors of Southern Phone.

"Southern Phone Company Ltd is an unlisted public company and only Local Councils can be shareholders. This means all profits are returned to the community through the Local Councils. No individuals may own shares in the Company".

Originally posted by theInquisitor
What I don't get is how can Southern Phone which was formed and is still owned by 35 local councils in NSW and employs a headcount of 160 profitably serve those 15k broadband customers to be acquired from AYS when the latter failed to do so despite its highly efficient do-it-yourself technology platform? When did government-owned labour-intensive businesses actually become more cost-effective than young innovative disruptors with highly automatized processes hosted in the cloud? Why would anyone pay $3m for AYS' broadband business converting into $200 per customer when that segment has actually been incurring losses, especially for a rather price-sensitive customer base? Why has the segment been sold at all just 18 months after launch and at a time when the political debate over NBN has reignited sparking hopes of lower wholesale tariffs that could completely change the underlying economics?
You would expect some proper explanation to shareholders for what looks somewhat chaotic. I hope this move indeed serves as preparation for the sale of the company as the Australian suggested in August. Perhaps there would have been insurmountable obstacles like change-of-control clauses in the wholesale contracts between AYS and their suppliers that would have impacted the broadband business in case of a takeover by a third party.

Expand

Personally, I think theyre clearing the decks in preparation for a sale.
Remove any impediments to facilitate a smooth takeover process.

AYS Price at posting: $1.15 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

FTL

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

RNU

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Most investors will get this earnings season wrong. Will you?

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

ASE

Astute delivers high-grade lithium hits at Red Mountain

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

SGQ

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

First 5 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Ann: Sale of fixed line broadband customer base, page-5

Top Stories

Firetail scoops up untested land around Excelsior – including juicy mineralisation target

Renascor produces graphite concentrate at Siviour, right on time to meet ex-China demand

What is going on here? Watch out for DroneShield, Pure Hydrogen, and Nel ASA

Most investors will get this earnings season wrong. Will you?

ASX Market Close: Fading miners drag bourse as iron ore price slumps | July 25

Astute delivers high-grade lithium hits at Red Mountain

Friday's HotCopper trends: Renascor concentrate, Larvotto raise | July 25

Rokeby, BHM, more: The 10 hot stocks HotCopper users watchlisted in Week 30

St George banks $5M from placement to ramp up Araxá Rare Earths Project

Listen: HotCopper Wire Podcast 019 – Dreaming of the 9,000s

Featured News