My view is that there will be minimal overlap between the NBN and AMM's fibre network. I don't believe the aim of NBN will be to control every last mile of fibre in the country. The initial aim will be to roll-out faster internet to as many voters as possible i.e. residential. Or at least to dig a lot of holes around the burbs before the next election.
NBN will be a big deal for IIN eventually but whether it will affect them positively or negatively is crystal ball stuff. Kohler tried to scare everyone off the small ISP's a couple of years ago with a big article saying FTTN was going to make all ISP's low growth utility companies. IIN has shown with their moves on content that this will be far from the case. IIN has done well with their ADSL2+ network build and they always knew it would become obsolete one day. The whole scare of FTTN and now NBN has just helped their cause by limiting new entrants and competing networks from springing up in the meantime.
I disagree that IIN makes up 9c an Amcom share. My calc would be less than 5c a share. They purchased the IIN investment primarily using debt, so to take the asset in isolation is misleading. If they went out and borrowed another $30M to buy more IIN shares would the IIN investment now account for 15c an Amcom share i.e. 100% of the share price? Their net asset position wouldn't have changed.
Anyway lucky there is an NBN to talk about. If it wasn't for the NBN, the GFC and a share register full of useless AMMO, then there would be nothing to talk about on this board. AMM's directors play their cards pretty close to their chest, so don't give us much to discuss. Just steady as she goes from an operational perspective.
AMM Price at posting:
10.7¢ Sentiment: None Disclosure: Held
