Bill will scare off vendors: Telstra

Original article by Supratim Adhikari
The Australian – Page: 27 : 19-Jul-19

The federal government’s encryption laws have attracted criticism from a range of sectors, including the technology industry and civil liberties groups. In its submission to the Parliamentary Joint Committee on Intelligence & Security, Telstra claimed that the legislation will make international vendors reluctant to share new devices and technology with Australian telcos. Telstra also contends that the legislation has the potential to disrupt network services.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA. PARLIAMENTARY JOINT COMMITTEE ON INTELLIGENCE AND SECURITY

Vocus has no regrets as turnaround proves too risky for EQT

Original article by James Fernyhough
The Australian Financial Review – Page: 13 & 20 : 6-Jun-19

Vocus Group CEO Kevin Russell says he is not aware of any other potential takeover approaches for the telco, after EQT Infrastructure chose not to make a binding offer for the company. EQT undertook due diligence on Vocus after approaching it with a non-binding offer of $5.25 per share. The Sweden-based private equity firm’s decision to walk away from a deal prompted a sell-down of Vocus shares on 5 June, with the stock closing almost 18 per cent lower at $3.77. Russell says Vocus is making progress in its turnaround strategy.

CORPORATES
VOCUS GROUP LIMITED – ASX VOC, EQT INFRASTRUCTURE, M2 GROUP LIMITED, AGL ENERGY LIMITED – ASX AGL, SINGTEL OPTUS PTY LTD, GREENCAPE CAPITAL PTY LTD

Telstra set to axe 10,000 contractors

Original article by James Fernyhough, Max Mason
The Australian Financial Review – Page: 13 & 16 : 5-Jun-19

Telstra CEO Andy Penn has advised that the focus of the telco’s ‘T22’ strategy cost-cutting will shift to its indirect workforce from 2019-20. Telstra boasts about 40,000 indirect workers, who include contractors, call-centre workers and customer service staff. Penn has signalled that the telco will shed about 25 per cent of these workers over the next two years. Telstra unveiled plans in mid-2018 to retrench some 8,000 direct employees over the next several years. The ACTU has accused Telstra of putting profits ahead of people, jobs and service.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, ACTU, NEW STREET RESEARCH

Huawei ban rules out tilt at mobile: TPG

Original article by James Fernyhough
The Australian Financial Review – Page: 17 & 22 : 10-May-19

In the wake of the ACCC’s decision to block a proposed merger with Vodafone, TPG Telecom has indicated that it has no plans to build a mobile network. TPG terminated work on its own network in early 2019, after the federal government banned Huawei from supplying equipment for Australia’s 5G network. TPG argues that the Chinese company is the only supplier of 5G equipment that is compatible with the 4G technology that TPG has already installed.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, VODAFONE HUTCHISON AUSTRALIA PTY LTD, VODAFONE AUSTRALIA LIMITED, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NOKIA AUSTRALIA PTY LTD, ERICSSON AUSTRALIA PTY LTD, AUSTRALIAN COMMUNICATIONS CONSUMER ACTION NETWORK LIMITED, IBISWORLD PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED

NBN bleeds as revenue targets prove elusive

Original article by James Fernyhough
The Australian Financial Review – Page: 15 : 7-May-19

NBN Co has advised that it recorded revenue of $2 billion for the nine months to 31 March, although it posted a net loss of $3.4 billion for the period. As of March, 8.8 million Australian households were ready to connect to the NBN, with fibre-to-the-node the most common form of connection technology. NBN has set an average revenue per user target of $51 per month by 2022, but its ARPU is currently only $45 per month, up from $44 a year ago. NBN Co may need to seek a bailout from the federal government if it does not meet this target.

CORPORATES
NBN CO LIMITED, AUSTRALIAN LABOR PARTY

5G ‘overhyped’: Credit Suisse telco chief

Original article by Eric Johnston
The Australian – Page: 27 : 28-Mar-19

Optus launched 5G broadband services in February, while Telstra intends to begin selling 5G handsets within six months. However, Colin McCallum of Credit Suisse has downplayed the merits of 5G technology for consumers, arguing that existing 4G networks can cope with the demands of streaming video. He notes that deploying 5G technology will require significant capital expenditure, while the opportunities for increased revenue from consumers are quite limited at present.

CORPORATES
SINGTEL OPTUS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, CREDIT SUISSE AG, SAMSUNG ELECTRONICS COMPANY LIMITED, APPLE INCORPORATED

Telcos slam NBN’s marketing push

Original article by James Fernyhough
The Australian Financial Review – Page: 13 & 18 : 26-Mar-19

Telcos such as TPG Telecom have accused NBN Co of targeting their business customers. Their view is that NBN Co is meant to be a wholesaler and it should not be having direct contact with end users. The Australian Competition & Consumer Commission has observed that NBN Co is permitted to directly promote its services to end users, but that it is not permitted to recommend retail service providers to end users. The ACCC’s view has been backed up by the federal government.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SINGTEL OPTUS PTY LTD, COLES GROUP LIMITED – ASX COL, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE TELECOM GROUP LIMITED – ASX MAQ

TPG calls for reduction in damaging NBN price

Original article by James Fernyhough
The Australian Financial Review – Page: 14 & 20 : 20-Mar-19

TPG Telecom has posted a 2018-19 interim net profit of $47.4m, which is 76.3 per cent lower than previously. The result was marred by a write-down associated with a decision to shelve plans for its own mobile network. TPG has advised that earnings from its core residential fixed-line broadband business fell 4.8 per cent to $243m during the half-year. CFO Craig Levy has warned that TPG will have to scrap its entry-level national broadband network plan unless NBN Co reduces its wholesale prices for budget plans.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NEW STREET RESEARCH, GOLDMAN SACHS AUSTRALIA PTY LTD, VODAFONE AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Mobile Virtual Network Operators taking market share from Mobile Networks

Original article by Roy Morgan
Market Research Update – Page: Online : 11-Mar-19

Mobile Virtual Network Operators (MVNOs) are continuing to take market share from the traditional Mobile Network Operators (MNO) in the prepaid mobile market, according to the latest research from Roy Morgan. Over 6.7 million Australians (32.6%) now have a prepaid mobile phone, and a rising share of these prepaid mobile phones are bought via a MVNO, such as those operated by the likes of Aldi Mobile, Amaysim, Kogan, Boost, Lebara, Lycamobile. MVNOs are now used by nearly 2 million Australians, or 29.4% of consumers who have a prepaid mobile phone. This market penetration for MVNOs is up a significant 2.5ppts in the last year alone, and up by 6.3ppts from four years ago in the six months to July 2014. Roy Morgan CEO Michele Levine says the increased market share taken by MVNOs in the prepaid mobile market is driven by a range of factors, including Australians looking for a better phone deal.

CORPORATES
ROY MORGAN LIMITED, ALDI STORES SUPERMARKETS PTY LTD, AMAYSIM AUSTRALIA LIMITED – ASX AYS, KOGAN.COM LIMITED – ASX KGN, BOOST MOBILE, LYCAMOBILE PTY LTD

The 2018, 8th Annual Roy Morgan Customer Satisfaction Awards: Telecommunications and Utilities Winners

Original article by Roy Morgan
Market Research Update – Page: Online : 8-Mar-19

Australia’s most satisfying home phone, mobile phone, internet, and utilities service providers were recently announced at the 2018 Roy Morgan Customer Satisfaction Awards. Optus is the Home Phone Service Provider of the year, with six monthly awards, while Virgin Mobile was named Mobile Phone Service Provider of the year, also with six monthly wins. Meanwhile, iiNet has been named Internet Service Provider for a fourth consecutive year and the Apple iPhone took out the award for Handset Provider for an eighth consecutive year. Red Energy took out the award for Electricity Provider for a fourth successive year, while Kleenheat is the Gas Provider of the year.

CORPORATES
ROY MORGAN LIMITED, SINGTEL OPTUS PTY LTD, VIRGIN MOBILE (AUSTRALIA) PTY LTD, IINET LIMITED, APPLE PTY LTD, RED ENERGY PTY LTD, KLEENHEAT GAS PTY LTD