J. Beveridge said"Whilst internet connection prices remaining...

J. Beveridge said

"Whilst internet connection prices remaining steady is good news for the retailers and the public, it remains to be seen how the NBN will be allowed to fund and develop its network under government ownership and how it will meet the challenge of technological change.

While it has long been assumed that the NBN would be a monopoly asset, on the ground it is becoming increasingly vulnerable to competition in some parts of the big cities from telcos such as Telstra,TPG (ASX: TPG)and Optus using the 4G/5G mobile network, which in some cases is offering cheaper and faster broadband access already.

Competition has also arrived in the form of low-earth orbit satellites – such as Elon Musk’s Starlink.

In both cases it is very early days and competition is far from ubiquitous or without its problems but there is little doubt about the potential of competition that arrives in a box and can be set up by the consumer without the need for technicians on the ground.

Will new technology undercut the fixed network?

With NBN now set to remain in government hands for some time, it would be a brave person who forecast no new technologies arriving in the next decade or more – technology that could effectively erode or even extinguish NBN’s current monopoly status.

While we all learned something after Telstra was sold and effectively became a fixed line telephone wholesaler and retailer at a time when most internet traffic went along phone lines, there are other problems for NBN given the massive sunk costs it has paid in installing and improving on the fibre and other broadband networks"

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This s.m.a.l.l.c.a.p.s article (J. Beveridge 22.8.22) is now redundant, as the Fed. Govt. announced a few weeks ago ago that the NBN net loss of $31 billion will be, unofficially, written- off. Plans for a possible privatisation of the NBN have, also, been set aside for at least 20 years ( to determine if the NBN can ever make a profit, &/or be commercially attractive!).

I consider these linked comments from Beveridge interesting- mobile internet services are improving, generally, on a price & efficacy basis; & there may be new technological developments in the next 20 years which could improve these mobile advantages. The new Starlink & LEO satellites also offer many mobile benefits.
TLS, with its strength in mobile, & its many TLS towers (which should have increasing importance & value), should also benefit/become more profitable.


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