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Telstra and NBN if the Coalition Win Election

Discussion in 'Business, Investment and Economics' started by Blue voice dude, Aug 25, 2013.

  1. Blue voice dude

    Blue voice dude

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    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.

    BVD
     
  2. sydboy007

    sydboy007

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    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.
     
  3. Country Lad

    Country Lad Off into the sunset

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    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.

    Cheers
    Country Lad
     
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