Maybe growth has already been funded? Telcos are big on new business but often forget the cost that comes with it, especially with fibre. Investor day had a good mention of account management, some efforts in this area could be quite fruitful in terms of selling the product stack to existing customers and reducing churn. Getting the wholesale channel right and fitting the right customers into the right space is I believe very much a WIP.
I think many are guilty of putting too much focus on NBN, an area that has a low barrier of entry and relatively little difference opinion COGs across the bigger players, it's a price game. More importantly there is significant revenue opportunity in the coming ISDN shutdown, Telesyte said ten years ago there was over 2 million SIOs, and the ASP is way above NBN, probably an average multiple of 4x. Sure some of those SIOs have gone, but there a lot of dormant customers still on ISDN in NBN areas, getting it right managing the transition of those to SIP without significant hardware change could be very profitable.
VOC also need to beef out their cloud play, Firewall as a Service is now a go, what about WiFi as a service for instance, as well as surveillance as a service, both of which need big pipes.
Note everything I see as upside would not have been plausible with a VOC from a few years ago, and those with a fibre only mindset don't understand the opportunity in over the top services, I am confident the recent changes have put in place a management structure and people that do.
VOC Price at posting:
$3.42 Sentiment: Buy Disclosure: Held
