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post Posted: Oct 10 2004, 10:04 AM
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In reply to: michaelirish on Sunday 10/10/04 07:29am

Certainly a positive for TLS - however wouldn't expect a return to T2 pricing anytime soon.

Depends how much of a "services to the bush" anchor TLS has to drag to ensure votes of National Party senators.

Maybe could even convince the Greens to support the sale if it was tied to the environment (not) - LOL.

One thing is for sure - there will be less Senate committees convened in Canberra smile.gif

post Posted: Oct 10 2004, 07:29 AM
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In reply to: theking on Sunday 10/10/04 07:15am

The Coalition has 38 seats in the Senate from July 2. I seat to the FPP and they are favourable to the Coalition.
I expect the price to rise.

post Posted: Oct 10 2004, 07:15 AM
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THE KING says all of TLS will now be SOLD.. king.gif

post Posted: Oct 10 2004, 12:00 AM
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Will we see a jump on monday?

post Posted: Oct 9 2004, 10:14 PM
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looks like the lib/nats will have 38 of the 76 senate seats and need only one to pass legislation from when the senate chages on July 1 next year.

Thye will get their extra one from the independant who is really alib (name escapes me at the moment)

Given this, expect to see Telstra with "for sale" signs in the second half of next year.


What suitable strategies do posters percieve for TLS, knowing the above and the current/foreseeable state of the company?

At what price will T3 be offered?

My early thoughts are either long dated ITM (in the money) options (quite high cost), perhaps balanced out as a spread of some sort or ITM installment warrants with at least 2years to run.

Life does not have to be empty or faced alone
post Posted: Sep 6 2004, 09:18 AM
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Telstra’s national media inquiry line is 13 1639 and Media Centre is located at:

Telstra today announced it had signed an agreement to acquire leading business solutions provider Damovo Australia for an enterprise value of $64.3 million, positioning it well in the fast growing IP Customer Premises Equipment (CPE) sector.
Damovo is a large national multi-vendor CPE maintenance provider covering leading
CPE brands including Ericsson, NEC, Fujitsu, Nortel, Mitel, Cisco, Siemens and Alcatel. Damovo also resells PABX and IP enabled PABX products and applications for Ericsson, Mitel and other leading vendors and also provides call centre solutions for large and medium sized companies.

This acquisition underpins Telstra’s strategy to deliver growth by offering business
customers the ability to source the full range of telecommunications and IT services
through a single provider.

Telstra Business and Government Group Managing Director, David Thodey, said Damovo provided Telstra with additional capability to provide PABX services as a part of an integrated telecommunication solution and also the provision of services such as voice and call centre solutions that Telstra manages on behalf of our customers.

“Additionally, as businesses consider IP in the coming years, Damovo will give us significant CPE maintenance and product capability alongside our industry leading IP networks and applications such as telephony and multi-media.”

Telstra’s Business and Government Managing Director, Business segment, Christine Holgate, said Telstra’s ability to package IP CPE with carriage and applications was critical at a time when many businesses were upgrading their CPE. “Damovo allows Telstra to tailor end to end communication packages for small and medium businesses that provide them with the productivity and competitive advantages of new technologies,” Ms Holgate said.

According to analysts, Frost and Sullivan, IP PABX is expected to make up more than 50 per cent of the CPE market from the current 35 per cent by 2007. Damovo is well positioned to take advantage of this trend as a leading provider of CPE equipment and maintenance services supported by a well-respected national dealer network. “Telstra will have a strong platform from which it can benefit as many businesses commence upgrading their CPE capability in 2005 when the six year life cycle for PABX systems finishes following Y2K upgrades,” Ms Holgate said. “Telstra will complement its core strength in telecommunications with Damovo’s capabilities in designing, installing, maintaining and managing customers’ CPE
requirements using its well established sales and maintenance businesses and dealer networks.

The acquisition recognises Telstra’s customer feedback that they want a single point of contact for all CPE and network related issues.” Ms Holgate said customers were seeking a staged transition to IP environments that maximised the use of their existing PABX equipment. “The move to IP has been supported by significant investments in PABX functionality and this has ensured that both CPE and network based IP services remain important solutions for customers,” she said.

The acquisition met Telstra’s investment criteria providing operational control, being EPS accretive and cash flow positive in year two and was consistent with its capital management strategy. The acquisition price represents an EBITDA multiple of approximately five times Damovo’s latest management forecasts.
Damovo currently manages more than 4000 business customers including ANZ Bank, Australian Taxation Office, and Department of Foreign Affairs. It also partners with Telstra on several of its largest services contracts including National Australia Bank. Completion of the transaction is subject to some contractual conditions and Telstra expects to complete the acquisition in the coming weeks.
Telstra media contact:
Warwick Ponder
02 9298 4619


The Kiwi
Internet Infobahn

post Posted: Aug 19 2004, 04:31 PM
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It appears the consensus view is that the next year will be tight regardless of a good bottom line. May not see $5 again for a little while yet unless the buy back has a disproportionate effect, which I doubt.


post Posted: Aug 17 2004, 03:18 PM
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From Alan Kohler on new wireless network competition for TLS.


Telstra loses its licence to print money
By Alan Kohler
August 17, 2004

Telstra's share price has been sagging like an elderly dieter's jowls since last week's record profit. Why? Because its best is behind it: last week's may have been the last profit increase Telstra ever reports.

Most of the analyst commentary has focused on Telstra's poor effort as a cost dieter, which was, indeed, a bit like having salad for lunch and a pie and sauce for afternoon tea: every dollar cut from costs was matched by $1.80 in new costs somewhere else.

In general, CEO Ziggy Switkowski has made an impossible promise: to increase sales and cut costs at the same time. Telstra cannot do both, but he has unwisely staked his job on pulling it off (and the least said about this the better).

Costs are not the real problem with Telstra; the real problem is that it has lost its monopoly.

Telstra's has always been the best sort of monopoly to have. It's the sort based on capital barriers to entry, like railways and electricity, rather than political patronage, like casinos. Government licences run out eventually, even for licensees named Packer, but the need for prohibitive amounts of money and real estate to build access networks - whether roads, railway lines or wires - goes on forever.

When the T2 float was priced at $7.40 in October 1999, the national customer access network looked a unique, irreplaceable monopoly asset. Now it turns out you don't need wires to provide all telecommunications - air will do nicely.

Telstra's "natural monopoly" of owning the wires is evaporating into thin air because there are about to be several overlapping "local loop" networks - sometimes called 4G - connecting every home through wireless spectrum.

There are already two wireless broadband networks covering virtually all of Sydney: Peter Shore's and David Spence's unwired network, and Jim Cooney's Personal Broadband Australia.

Unwired's network will be officially launched this Thursday by the communications minister, Helen Coonan. It cost $33 million and took six months to build. Of that cost, $4.5 million was for back office stuff that won't have to be duplicated when networks are built in other capital cities.

Unwired covers 90 to 95 per cent of all homes and flats, and the spaces in between, from Bondi to the Blue Mountains. Modems are now on sale in Harvey Norman stores for $189. The monthly access charge is $34.95, which includes 200 megabytes of data, after which the speed slows from 512mbps to 64mbps (there is no extra cost).

Telstra's cheapest ADSL plan is $29.95 a month for 200 MB and 15c per MB after that. But it's fixed. Unwired is fully mobile, so you can use it in the local park and when you move house, it comes too.

In December David Spence is planning to launch "voice over IP" (that is, phone calls) over his network using a $50 box that goes between the modem and the ordinary telephone handset.

But there are already a few broadband voice-over-IP services around, such as Mobile Innovations, run by Ilkka Tales out of Sydney's French's Forest.

Tales has had a commercial pilot running for a few months and plans to officially launch next week. The price is from $19.95 a month, with 10c each for untimed local and long distance calls, 5c a minute for international, and free calls to others on the network.

Businesses like Tales's are sprouting like daffodils in spring. The main selling point is cheap untimed calls and free calls to others on the same network, so families and friendship/business groups are encouraged to sign each other up.

Personal Broadband Australia, 54 per cent owned by mobile phone network expert Jim Cooney, has almost finished its Sydney wireless network and is planning to roll out in Melbourne, Brisbane and Canberra next month. Adelaide, Perth, Darwin and Hobart will follow soon afterwards. Total capex budget is $350 million.

PBA is a wholesaler and its prices, through a range of resellers, are dearer than Unwired's. Also the business plan is more about mobile laptop access for professionals than desktop computers in homes. The card for the laptop costs up to $500 and the cheapest access is about $99 a month. Cooney says he has no plans at this stage for voice calls.

Meanwhile last week in Perth Western Power announced that its experiment in using power cable trenches to provide cheap fibre access to Perth homes was a failure and its subsidiary, Bright Telecommunications, would be closed.

Bright seems to have been a total stuff-up: the company spent $23 million to get optic fibre cable past only 1000 homes. That's $23,000 per home which would give a business plan investment payback of about 100 years. God knows what they spent the money on.

That doesn't mean fibre to the home, which Telstra is now piloting in Queensland, will be a dud, but it is being rapidly overtaken by nuisances like David Spence and Jim Cooney.

post Posted: Aug 13 2004, 04:46 PM
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From InvestorWeb


This week, Telstra Corporation (TLS) announced a record net profit of $4.12 billion for the year ended June 30, up 20.1% from the previous year. Sales increased by 1.2% to $20.74 billion while total revenue fell 1.7% to $21.34 billion. Earnings per share were 32.4c, a rise from 26.6c. A fully franked final dividend of 13c was declared, up from 12c, bringing the total payout for the year to 26c, down from 27c last year (which included a 3c interim special dividend). The directors stated the net profit reflected the company's continued focus on margins whereas sales were increased by growth across mobiles, Internet and IP solutions, PSTN products, advertising and directories.

post Posted: Aug 13 2004, 11:09 AM
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The share price will range trade for a while with flat revenue growth year after year. Telstra never fails to dissappoint. Very painful dividend play indeed.


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