Where to now for long term investors of Telstra, page-984

I agree with you on that and have said so previously. Where we disagree is where they should focus.

Strengths: cash flow, customer base, brand
Weaknesses: customer service, inability to execute on new businesses
Threats: margin erosion, competition, regulation

The obvious opportunity is to leverage their retail customer base and brand into other utility areas (gas and electricity). Why haven't they done it in 20 years? Who knows. Would have been easier when they had Sensis.

The benefits of combining with an established provider by leveraging the Telstra brand and customer base for an online RETAIL power offering (with discounts on bundled deals) is:

Clip the ticket on a new revenue source
Greater lock in for existing customers through the utility bundling
Low risk (the main skills are retailing, online and negotiation all of which they have)

If you want an example, something like powershop.
As for all of this electricity generation nonsense. Sounds like a potential boondoggle to me. I'd prefer they start with the straight dive rather than the reverse twist with double pike.