There are a lot of different business models in the retail and wholesale Telco markets. Infrastructure costs are huge so its all about sweating the asset.
It gets even more confusing when there are both retail and wholesale operations within the one corporate entity i.e. TLS. If you can get your head around this then it should be no surprise that Southern Cross Cables is actually owned by Telecom NZ, SingTel Optus and Verizon!
I would guess this new cable is a positive for VOC. If they can secure capacity on this cable it will provide extra geographic redundancy (since the SC cables run off the eastern seaboard) plus bonus of owning a Data Centre in Perth.
VOC Price at posting:
$2.50 Sentiment: None Disclosure: Held
