Moore's Law revolved around the concept of doubling of...

Moore's Law revolved around the concept of doubling of transistors within a physical footprint roughly every 2 years. We have seen Moore's Law fail to come to fruition for the first time recently, and we can expect it to fail on a regular basis moving forward.

With Telecommunications and many other IT services, this concept revolved around improving speed / performance / capability and dropping prices over the past 30+ years. Maybe not doubling speeds and halving costs every 2 years but definitely faster and cheaper which ultimately degraded their margins in the industry.

In the real world, you can only select two of the below... which would you pick?

• As a consumer, I do not want my normally fixed cost phone bill increasing by almost $20 in the past year for mobile & broadband.
• As a shareholder I want to see Telstra return to over 10c fully franked twice a year, ideally to where we were 10-20 years ago when we were getting 14c+.
• As an Australian, I would like to see their products remain best in market and their philanthropic actions, such as free payphone calling, remain.

It was always going to have to be Telstra that bit the bullet and increased pricing first, this allows their competitors to follow suit and slowly return the industry to an overall reasonable return.

Telstra's profit margin (net) has declined from 16%-20% last decade to 11%-13% this decade. For such an infrastructure heavy business, how much lower can it go?