The NBN is a debacle because its really unfair. I'm guessing you are lucky enough to get 95MBPs, however, a lot are paying the same price without the additional speed booast/benefit. The whole point of Penn's statement is that even if a good service is provided, the margins for TLS is close to zero for telcos. There isn't a good business case for providing services for the NBN, which will lead to lesser innovation/improvement for the sector.
Where to now for long term investors of Telstra, page-5989
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