Think of it this way, where Telstra is providing services with no competition prices are regulated by ACCC, so there is a ceiling, and thats the best it can get for Telstra.
If Telstra is going to lose that advantage, and get overbuilt, its better for it be overbuilt by a common carrier that anyone can use, that way its hard for the ACCC cant claim that it should still be regulated.
It also means TPG, VOC, Optus are less likely to overbuild, and other emerging competitors like Aussie Broadband or Superloop are less likely to start any significant rollouts and get their foot in the door, so it helps hold off long term threats.
There is a lot of overbuilding in Metro areas, but not much in regional areas i suspect, so Telstra can hold out their advantage there, where they probably have stronger brand value due to better geographic mobile coverage as well.
A bigger issue than NBN overbuilding is the cost profile of their business services, Telstra has been charging too much for a long time, and competition is the inevitable result, this is least worst.
TLS Price at posting:
$2.83 Sentiment: Hold Disclosure: Held
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