I saw the headline for Vodafone, but i thought it was just to allow them to maintain their service during the NBN transition...
Mobile is a good backup if fixed line is down temporarily, but its no good if lots of people use it, it would slow down too much.
I think its a good move for Vodafone, they are trying to get a foothold in fixed line, and mobile is the only other card they have to play, and they are playing it.
Mobile is more expensive to than fixed line, it is good customer service for them, but bad for profits.
Dodo is strong in the 'value' segment of the market, and Telstra is strong with high end, needier customers, so i guess Voda's plan was more a threat to Telstra than anyone else, and thats why Telstra had to match them.
There has been other news about the big telco's getting nervous about NBNco moving into corporate, i see that as a possible threat to future earnings, at the moment the big players have their own lines, if NBN enter the market, suddenly all the tier2 players can try and compete with us.
If you look at the number montgomery uses in the post above, they always get it wrong, because they calculate it like a consumer only service provider, but we have reduced CVC costs as we can share it with corporate customers. We lose that advantage if NBNco move in, and in such a case Montgomereys numbers might become closer to reality.
PS. I hope to have some pretty graphs for when the ACCC NBN market share results come out tomorrow.
VOC Price at posting:
$3.51 Sentiment: Buy Disclosure: Held
