Blue-Chip

Is Telstra Corporation Ltd an absolute bargain at $4.13?

August 07, 2017 | Team Kalkine
Is Telstra Corporation Ltd an absolute bargain at $4.13?

Telstra Corporation Ltd


TSL Details

Recently, ACCC’s announced to set wholesale prices and other terms and conditions which would lead customers with several options to choose from. Telstra has a huge first mover advantage as the group invested more than $8 billion in the last six years for building Australia’s major and best mobile network with 15% of this investment directed to cover the last 2% of Australia’s population. Telstra is further investing $1 billion to strengthen their regional mobile coverage and expanding their 4G coverage to reach 99 per cent of the population. For the coming years, the group would see a further 1.4 million square kilometers of 4G coverage for regional and rural Australia. As a result, over 600 base stations would be upgraded from 3G to 4G, enabling the Australian population access to world-leading 4G networks. As per ACCC, Telstra’s fiber network prices would be $16.03 per port per month (Zone 1) for 2017 to 2018 and $21.10 per port per month (Zone 2) and $29.27 per mbps per month for aggregation. Given the ongoing investments to increase the market share and favorable regulatory environment, we maintain a “Buy” recommendation the stock at the current market price of $4.13


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