Where to now for long term investors of Telstra, page-113

Ianwill, the easiest way to explain it is if you go to page 20 of the official Telstra results which is in regard to FY18 guidance.

the bar graph presented is excellent as it has captions on 2017 and 18.
basically, when you strip out NBN one offs, you realize that the 70 to 90% option payout of underlying , ordinary EPS is going to be 70% , rather than 90%.

that's why Penn stuffed up big time with instos on results announcement. all he has done is to try and give a false picture with the 90% option payout.

all it means is that TLS is covering their backside, as they have to at least maintain 22 cent divvy, but if the EPS on mobile and fixed voice keep declining, Penn can enforce the 90% option to keep the divvy at 22 cents.

ps- the only 'extra' you may possibly get is the 40% forward sale of NBN maintenance charges. that equates to 5.5B ,but 1B of that is to be paid back in debt.

so you have a possibility of 4.5B as on or off market share buybacks.

add to that-you have 5G. no one from Telstra or Optus are willing to say what the plan costs might be. sure, 5G can stream movies instantly at massive data usage rates, but you can't even get 12GB of data for less than $50.

i think the whole thing is an absolute scam in regard to it's benefits. all consumers will pay the same amount as when the network was on 4G, but all Telstra and Optus are trying to do is to cut costs to their own bottom line, as the 5G network has huge cost savings for the telcos .

that also applies to NAS cloud computing and the internet of things. the main revenue will dry up after installation of the NBN, so 5G could turn this into something special.

cheers crazypunter