my 5c worth

IMO

The Board of TLS did not want to participate in the tender for the National Broadcast Network (NBN) becuase under the terms and conditions of the Tender Telstra would have to effectively be broken up into seperate trading entities and forgoe the substantial economies of scale which Telstra enjoys.

Telstra no longer is a Government Organisation, it is run for profit and shareholders. The Board's decision is of benefit to shareholders in that at the end of the day, there is no other infrastructure group which would be able to complete this project with the same level of compentency as TLS.

TLS knows that it is in the driving seat and that timing is not an issue for the Government and as such TLS has made it not an issue for itself either. A willing participant with cash and bodies and skill TLS is biding its time. As Sol notes:

"Even after decisions in legislation there's a lot of time left to run before anyone else starts building, in which ant real impact on Telstra, even assumining we don't respond.... is years away.

... WE RESERVE OUR RIGHTS REGARDING FUTURE ACTION. IT IS TOO EARLY TO RULE ANYTHING IN OR OUT... WE HAVE PLENTY OF OPTIONS... "

TLS on up-tick is a STRONG BUY for LONG TERM HOLD and I will accumulate at that juncture.

NOTE: Accumulation of 50% only will occur pre-Thursday February 26th when TLS. Post 26/2/09 second tranche will accumulate as TLS will higly likely report that traffic for use of service has declined and revenue accordingly has suffered.