HYR Discussion, page-12

Sell off because Telstra's future prospects are slowly but steadily declining.

Their biggest strength was (and still is) their mobile network. But Optus and Vodafone are both investing heavily, and the Telstra advantage to justify their premium pricing is gradually being eroded.

Pay attention to slide 14 of the deck.

Mobile revenue across all segments was pretty much flat. The bump in total revenue came almost entirely from hardware sales.

That's not a good thing for a carrier given the world is moving towards outright purchase. Consider that Apple introduced their iPhone upgrade program last year. Not avail in Aus yet but it's only a matter of time.

ARPU across all mobile segments has been steadily declining for the the past 18 months. This corresponds with increased competition primarily from Optus MVNOs, in particular the likes of Amaysim. Those MVNOs (and even Optus direct) have really stepped up their price aggression in the last 3 months so we're likely to see continued ARPU decline.

Growth in fixed line broadband is interesting, though I note that page 6 of the commentary says "Our Belong offering was an important part of our fixed data performance". Belong is Telstra's price competitor for fixed broadband which makes me wonder what it's doing to their margins.