BDL 0.00% 13.5¢ brandrill limited

BDL - NTA, page-10

  1. 4,941 Posts.
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    re: TLS - CSO1 Hi CSO1,

    As well as not treating their customers well, TLS treats their suppliers, and industry colleagues with similar disdain.

    Suppliers are regarded as the evil enemy, whose margins should be marginalised when dealing with Telstra.

    Wholesale customers are treated as competitors rather than as another source of revenue. Note here the parallels to the access regime debate going on in New Zealand where Telstra-Saturn recently threatened to take TEL to Court if they didn't introduce a more accommodating access regime. Pity the poor wholesale blighters back here in Australia trying to get like-for-like treatment from Telstra.

    Pity also the retail customers of Telstra most of whom are treated with limited courtesy or respect.

    That said, Telstra is a huge organisation and is involved in many different things, most of them unconnected (ie: at least in a billing management /CRM (or Customer Relationship Management) perspective.

    It is in no small part due to the monolthic size of Telstra that many of their problems are being encountered. A loss of focus, a shimmering of direction, and a gleeful Government is all it takes to ensure that Telstra is under continued and sustained business pressure out there in the marketplace.

    In some instances, Telstra's interests would be better served by having the organisation broken up into various component parts, all of which would be partially floated off (thereby liberating capital, freeing up access, and allowing for investors to make their sector selections, as well as their stock selections). Will it be broadband, wireless, fixed telephony, or Pacific Access that I will be investing in, rather than all of the above.

    Some out there say that Telstra is rapidly approaching Utility status. I, however, would prefer to consider that Telstra could be in the formative stages of developing a conglomerate status in all things to do with communication. But to secure this status, Telstra needs to be fully privatised and that will not now happen until well into 2004, or beyond. If done any sooner, however, I fear that the Government will disgorge Telstra such that the final offering is unsustainable in the medium to long term.

    For now, Telstra's share price is under stress, and continues in a downward leg. The fundamenatls suggest, however, that Telstra's share price should now stablise in the $4.50 - $4.60 range.

    But issues such as brand, image, reputation, governance, and comemrcial /business integrity could all soon start weighing on investor's minds.

    Because of these and related factors, I would not be all that surprised to see Telstra bottom out at $4.20 within the next 2 weeks. Thereafter, the long haul back up will be slow and tortureds and not without its fair share of risk.
 
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