TLS 0.77% $3.86 telstra group limited

I have been scratching my head in disbelief at what has been a...

  1. 307 Posts.
    I have been scratching my head in disbelief at what has been a pretty anaemic opposition response to date to the Conroy plan.
    It seems only now is there going to be a concerted effort to derail Conroys vision. I think that finally they realize the importance to conroy of a quick resolution in the senate.
    They can now see real political opportunity in being the ones that stopped conroy from steam rolling this thing through.
    There are enough investors affected at the TLS level, and also enough people starting to really question the viability firstly, and secondly the wisdom of such a grand plan in todays recovery environment.
    Conroy has staked his political future on this plan. He was humiliated by Rudd when he came back from the school of Obamanomics to announce the new plan earlier in the year, and that the cheaper conroy plan was a non goer.
    To regain face he has put his own bully boy stamp on the negotiations with TLS. The political back lash to these measures are only just starting to come to light.
    These measures speak to many groups of people in a negative way

    Small investors in TLS.... enough said

    Large Investors in TLS.. even the future fund has acknowleged the negative impact.

    International investors.. the issue of sovereign risk in australia being discussed

    Tax payers.. Overstimulation by Rudd. We are now in a position to judge the Rudd "stimulus at all costs package". Clearly the unique position Australia is in with regards to china resources , strong banking system etc was ignored. We now have to face up to rising rates to counteract this.
    The massive spend of the NBN can be seen in the same light- a massive overreaction to a problem that just did not exist in Australia. This part of the stimulus should and is being reassessed in a new light. For Conroy of course that is irrelevant - he will press on regardless to save his political career.

    The opposition now get it. Raise enough doubts so that the thing has to (should be) debated.The resulting delay plays into Telstras hands. This is enough to give TLS the stronger position it needs. A delay into the new year will have re election ramifications. TLS will have the ability to negotiate a significantly better deal.
    This in itself will be seen as a victory for the opposition who will point out at the next election how conroy had to back down etc etc. This assumes that a favourable deal can be done quickly.
    Alternatively a quick deal favouring TLS will not be able to be reached and the whole thing will be delayed well into the new year- another victory for the opposition.
    Either way, giving TLS its support via delaying will reap rewards
 
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