Structural separation boosting the share price

Report Cover Image

Last updated: 30 Aug 2011 Update History

Report Status: Archived

Report Pages: 7

Analyst: Stephen McNamara

Telecom Investment Research Note


The first results of structural separation look promising. Telstra in Australia and Telecom in New Zealand are both in the process of a structural separation. Like every other incumbent telco in the world these two companies initially resisted any reforms that would lead to structural separation. However both have now not only accepted their fate but have positively reacted to the change.

Now, a year later Telstra announced their transformation strategy, it is evident that this new approach was a masterstroke and that Telstra has re-established itself as the competition’s market leader. This has taken the industry by surprise as few thought that the incumbent would be up to such a task. Now, bolstered by its success, Telstra could become even more successful in times to come.

Driven by a combination of higher revenue and tight cost management the company has released a stronger than expected FY11 result. The result was driven by the core NZ operation, and in particular strong cost management.

What has been promising is that both companies saw a stronger second-half performance and that is creating the confidence needed to move into 2012.

Companies mentioned

Companies mentioned in this report include – Telstra, Sensis, Optus, Telecom New Zealand, Chorus, AAPT, Vodafone, 2degrees.

Related Reports

Share this Report

Purchase with Confidence

Paul has been a relentless advocate and tireless activist for making the world a more connected place.

His passion for broadband and his firm belief in its transformational impact on societies across the globe is unrivalled.

I am honoured to call Paul a friend and I trust he will keep up the fight for better broadband and better access to broadband for all people, wherever they live and whatever their background, into the future.

Senator Stephen Conroy, former Communications Minister and Deputy Leader of the Opposition in the Senate

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:

Research Methodology

Sample Reports

A selection of downloadable samples from our Annual Publications catalogue.

Download a Sample Report

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.