Telecom Investment Research Note
Telstra is now a company in transition. It has made a firm commitment to change, based on a structural separation of the organisation. The future of its infrastructure business has, in principle, been secured through the Heads of Agreement it has signed with the government. The $9 billion deal will secure the company an annual flow of around $1 billion.
However, it will now also have to protect/safeguard/preserve its other business, and interesting strategies have been mooted during recent announcements. These all clearly indicate to BuddeComm that the company is transforming itself in order to maximise the new opportunities that are ahead.
Since it will have to take into account the present as well as the transitional period ongoing regulatory conflicts with the industry seem inevitable, at least for the foreseeable future.