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- 28 March 2006
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@sptrawler TLS looking good so far.
It certainly looks as though you were right on the money Boggo, still in the range, well called.@sptrawler TLS looking good so far.
Well as usual Boggo, you have called it right, just back of holidays and TLS is bouncing.It's finally come back to life. My TLSIOO warrants were looking like heading towards decay for a while there.
Next question... is there another 40 cents in it ?
(Weekly at Wed 27th - click to expand)
View attachment 98776
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My guess some are moving from Banks to TLS, for dividend growth?
How has the volume been?
The share price is still holding well Boggo, I suppose the next step one way or the other, will be when it gives a market update on earnings?Yes, it's slowly plodding in the right direction @sptrawler.
The more reliable patterns tend to move slowly, hopefully it will continue and if it does it could take til mid Feb to continue to the potential target area.
Nothing significant on the volume that I can see on the weekly anyway, tech/a may see some clues in there.
Cheers @sptrawler.
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ATM though there is obviously a positive sentiment.
Probably just rolling debt. But a good idea to lock it in for a while. (as long as currency is hedged?)Telstra to issue 500m Euro 10 year bonds, they seem to be building a bit of a war chest ATM, I wonder if it for impending problems or a buying spree.
Although other reports, from Andy Penn, no less, are less pessimisticA view is, as we go longer in lockdown, that this has "driven business and entertainment online, but left telcos spending to service surging demand, and, with fixed pricing structures, no quick way to monetise the investment." "At the same time, roaming revenue has dried up as people travel less, and telcos are bracing for a slump in new contracts accompanying a wave of unemployment as businesses shut."
"The fact that actually we can even contemplate large sectors of the economy and the population working and studying from home is in of itself a pretty impressive fact, given the technology and the capacity that’s had to be created and invested in to get us to that point.”
“We are seeing an increase in mobile traffic, we’re seeing a shift in the peak time of mobile traffic, which was typically around 5:00 pm, it’s now trending more towards 2:00 pm in the afternoon. We’re seeing, obviously, volumes on the network more generally increase.”- Andy Penn, CEO
Telstra ... entered an agreement to sell its data centre complex in Clayton, Victoria, to Centuria Industrial REIT for $416.7 million. The sale includes a triple-net lease-back arrangement which means Telstra will retain ownership of all IT & telecommunications equipment, as well as ongoing operations and responsibility for building upgrades and repairs, future capex requirements and security. The sale has no impact for Telstra customers.
The 3.2 hectare complex is 25km from the Melbourne CBD, and incorporates 10 buildings, including Telstra's newest 6.1MW data centre and its adjacent 6.6MW data centre and associated energy centre. The transaction is expected to be completed by the end of August. The transaction will generate $416.7 million in proceeds. Due to the long tenure of the lease-back, the transaction will not be treated as a sale under accounting standards, therefore no accounting gain will arise.The lease is for an initial period of 30 years with two 10-year options for Telstra to extend the lease. Telstra CEO Andrew Penn said the sale was another marker of progress on the company’s T22 strategy. “As part of T22, we have an ambition to monetise up to $2 billion worth of assets to strengthen our balance sheet. This deal means we have now reached over $1.5 billion. “Data centres are an incredibly important part of the digital ecosystem and we continue to own and operate world-leading facilities in Australia and overseas."
That may be about to change after a restructure announced last year, which resulted in Telstra splitting its infrastructure assets into a separate business segment called InfraCo. InfraCo consists of exchanges, ducts, data centres, subsea cables, fibre and 8000 towers that host networking equipment. We have just seen a data centre at Clayton leased to a REIT (#2379).Infrastructure is probably the most attractive on the assumption that it can be successfully separated from the retail assets. Telecommunications infrastructure provides a long-term steady cash flow, which is highly valued by the market. Unfortunately, in Australia, there are no pure play communication tower investments. Telstra's communications infrastructure is part of the overall business and has not yet been demerged as a separate business; similarly with TPGs cable infrastructure.
Expect an Infrastructure entity to emerge; high yield, low growth, geared? .... especially in this 'low interest' era.Towers and other parts of InfraCo generate revenue from servicing Telstra alone. If this division was separated from Telstra, these assets could increase revenue by servicing other telcos. A tower that now services only Telstra could service all three mobile networks. Competitors would have to supply their own networking gear, but the infrastructure owner could earn three times as much revenue. Mobile network towers are a natural monopoly and it makes little sense to duplicate a network once it has been constructed. There is no duplication of water pipes or electricity wires and the same can apply to mobile towers. This is an important opportunity for investors to grasp.
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