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Shares set to benefit from the NBN

Discussion in 'ASX Stock Chat' started by octain, Jul 4, 2011.

  1. octain

    octain

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    With the NBN almost assured now to go ahead with the telstra and optus deals making it very expensive to wind back, it now seems to me to be a good idea to work out the areas that will best benefit from NBN.

    I like investing in the tech space. Simply because a lot of traders don't understand the technology. Which means those people who do understand have the opportunity to capitalize on technologies which are emerging.

    VOIP or voice over IP as it is known is the technology which utilizes the internet to carry your land line telephone service. Currently all landline phone by telstra are deleived via the copper cables they own and run some 50 or so years ago. They run into almost all Australian homes and have been the back bone for telstra since their inception many years ago. From the years of them as PMG and telecom.

    But all this is about to change......

    Under the NBN all the copper cables are to be decommissioned and replaced by fibre Optic cables. With this your internet will be delieved via the fibre as will you landline telephone service. Which means essential we are all moving to VOIP to deliever you landline telephone service. So your telephone will be delievered though the internet. Most people won't even realise the change as essential you phone number will stay the same and you'll still plug into the wall at the same spot. All it will mean is that the technology that deleivers the service will be completely different.

    This opens a whole level of competition to the market meaning you no longer are reliant on Telstra to receive a phone service. This open up the market to all the VOIP providers to compete on par with Telstra. While there is no doubt this will be a diffcult task for VOIP providers as Telstra have the been the dominant provider of landlines for well.... ever....

    However with many still just small startups with only a handful of employees, even taking 1% of the market share off Telstra will mean they will grow 1000% from their current size. I believe the smaller players will be able to offer better customer service due to their smaller size and better pricing structure which will ultimately take the customers from Telstra.

    So who are the players likely to win from VOIP. Well there are a few listed on the ASX however most of the companies are subsideries of other companies and or offer many other services. One I like who focus on VOIP and are considered one of the biggest players in the market in Australia and by all accounts have a pretty good reputation is Mynetfone.com.au (MNF).

    They have been slowly ticking away and increasing their profitibility slowly which I like and have proven themselves in a tough market. Indicating to me that they have a good management structure. They recently had their SIP service certified by Microsoft. The first provider in Australia to do so!

    So while the NBN may take 8 to 10 years to roll out completely this stock seems to be a decent good long term play to put a few thousand in and hope it makes you rich in 10 years.
     
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