What a shame - major Telcos around the world face the same legistlative scrutiny on competition but they trade on per valuation. Whereas Telstra, it's become farcical. It's such a cash cow and profit machine with a trusted brandname that it seems ridiculous it has failed to trade on valuation since 2004.
Price in Next G Network [wireless & future growth] Price in Mobile [growth for data and content] Price in Foxtel [growth patterns over 5 years] Price in corporate and government customers Price in innovative growth of products such as Tbox & Thub Price in $6.2 billion free cashflow
Subtract PSTN architecture but also subtract total workforce attached to the PSTN. Over five years we probably have a neutral result.
Hell, Foxtel alone is worth $10 billion and growing and at current capitalisation it represents a whopping 30% of Telstra's capitalisaion.
I say put it up for sale because I am sure someone like Deutsche telekom would like a tilt at Telstra without the fixed line network. These are take-over prices and I will be suprised if some bohemeth global telco doesn't take a look at it.
TLS Price at posting:
$2.66 Sentiment: None Disclosure: Held
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