TLS have a huge advantage in being able to cherry pick the prime clients from the NBN. That is the starting point.
We all know how long it will take for the NBN to be built- if at all. Whatever the length of time it is, one thing we can be sure of, is that the speed requirements for middle class households will continue to surge exponentially. I expect a similar law to moore's law for cpu speed to hold over the next decade.
One of the key advantages for TLS is speed. The NBN is locked into a pedestrian 10 mbs. This will not be sufficient for average use say in 3-5 years time.
A key strategy IMHO for Telstra to follow is to create the demand for extra speed ASAP.
What they need to create is a new product that virtually ensures that those with the dollars will want to be TLS customers.
To this end I think that a deal with content owners giving TLS exclusive rights to their product makes sense.
Obviously this content has to be in great demand and not be able to distributed in other ways.
My thoughts fall back onto the great australian passtime -watching sport.
Imagine if High def streaming of AFL and NRL was available for all matches 24/7 on demand. live stats, special feeds into for example coaches boxes , GPS embedded into players jumpers, ability to track individual players etc etc.
Australia has a sporting obsession. The demand is there.
This product cannot be delivered by FTA or even cable.
The strategy is- create the demand with a popular albeit specalized product and the speed bar will be raised overnight. Even though you wont get 21 million people signing up for HD-AFL you will get people starting to demand other types of similar product. This will entice other commercial players to develop similar products- all dependant on a 100mb/sec connection.
Telstra already has a presence in the field with Bigpond and foxtel.
They would have ready and willing partners with the AFL in particular that want to expose their sport to an international audience. A deal could be struck where all internet rights were given free to telstra for a period of say 5 years whereby it is conditional upon making the product available to international distributors. The obvious partner here would be Murdoch.
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