Telstra and NBN if the Coalition Win Election - Aussie Stock Forums

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  1. #1

    Default Telstra and NBN if the Coalition Win Election

    Hi All,

    I wondering what the general feeling is towards Telstra if the coalition win the election.

    Labor have opted for fibre to premise and agreed a contract worth 11 billion with Telstra for the rollout of the NBN.

    Liberal prefer fibre to the node and say it will be cheaper.

    David Thodey has said he will discuss any option with the new government but it can't be less than the contracted value with Telstra.

    I think the share price will drop significantly if the coalition win as they could tie Telstra up in the courts for years and delay the NBN until Thodey agrees to their wishes.

    I was curious what other opinions people have to offer on the subject.


  2. #2
    sydboy007's Avatar
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    Default Re: Telstra and NBN if the Coalition Win Election

    I dare say Telstra are in the box seat.

    I fear MT is going to have to dom some sweet heart deals for Telstra to handover the copper to NBN.

    I'd say at a minimum:

    * NBN takes over all Asbestos liabilities

    * Telstra gets lots of juicy construction contracts.

    The true cost of this will be hidden away and probably not know for many years.

    Telstra are on a roll anyways with their mobile division.

    As for MT being able to hold up construction, he can't. His mantra has been cheaper and faster. He's handed Telstra his cajones and it's really only a matter of how hard Telstra has to squeeze before MT gives in.

    Personally I think it'll take a year before the first node gets installed. You have to have the vendor beauty pageant to determine who's equipment you'll use, and maybe you will need to have multiple vendors as there will be varying requirements for nodes.

    TBH I think Tony has been rather smart giving MT this portfolio. Unless MT can move out of it before the 2016 election he's toast politically as I've got a better chance of winning lotto than he does of meeting his 2016 target.
    A budget tells us what we canít afford, but it doesnít keep us from buying it.

  3. #3
    Off into the sunset Country Lad's Avatar
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    Jul 2005
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    Default Re: Telstra and NBN if the Coalition Win Election

    Quote Originally Posted by Blue voice dude View Post
    I was curious what other opinions people have to offer on the subject.
    Leaving aside all the political nonsense, the market will know of the impending coalition victory so it appears the implications of that is now in the price. I wouldn't be too concerned about protracted actions in the courts, whatever outcome is required will come out of negotiations. The question mark is the amount of $s involved.

    Country Lad
    2013 - celebrating 30 years trading and just about getting the hang of it.

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