could be a rough patch for voda... this came from a goldmands report
These changes effectively replace the 50% discount promotion available since July. GS&PA COMMENT: (1) Continues Telstra's repricing; Improves value of Telstra mobile plans. The improved data allowances make Telstra's plans more competitive. For example for: (1) $49 cap: Telstra offers 1GB, Optus 1.5GB, Vodafone 1.5GB; and (2) $79 cap: Telstra 2GB, Optus 3GB, Vodafone 2GB. We understand all existing customers can move onto the new data plans (although initiated by customers). For example, customers previously on the $49 cap (200MB, or 500MB which includes 50% promotion) can move onto the revised $49 cap and receive 1GB for no charge. One of Telstra's key weaknesses in Telstra's mobiles business is the relatively low smartphone penetration (Telstra 28% vs Optus 50%). We expect the improved pricing to drive: (1) Telstra's smartphone adoption; and (2) data revenues. (2) We expect Telstra's strong momentum in mobile to continue. At its AGM last week, Telstra indicated total mobile sub net adds for the September 10 quarter was +364k compared with: (1) 2H10 +175k, 1H10 +196k; and (2) September quarter net adds for Optus +189k and VHA +58k (although VHA does not include wholesale customers). We expect Telstra's momentum will likely continue into the December quarter given: (1) continued improvements to pricing plans; (2) launch of Bigpond Ultimate wireless BB product in October; and (3) Vodafone network issues evident since October.
HTA Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
