I'm truly shocked TLS hasn't moved into retail energy yet also BUT perhaps we should have some patience....
Why would TLS make a move like that when we are still under so much Government regulation?
Wait for TPM/HTA merger to be approved and for TLS to no longer be considered wholesale monopoly, NBN should officially take over that crown soon, IMO there is a reason Penn holds onto this "blackhole" theory that everyone seems to swallow without thinking critically about it, basically it's because TLS are still not in a position to admit how badly they screwed the Government with the sale of it's copper!
Surprising how long this is taking to play out but it now seems likely the Government will change, NBN will be written down and TLS will finally be de-shackled from over regulation.
In 6-12 months time we will still have all these favourable economics to enter energy, we are maintaining fixed line market share and building slightly in Mobile, we will also be officially operating in the new separate business segments taking away the other target of "corporate behemoth" that also seems to plague us at every turn.
It's always "Big Bad Telstra" boooohoooooo they need to be stopped, yada yada yada.
IMO FY 2020 is going to be the one where people realize what's been built in their own backyard in plain sight!
When it's all said and done I would put a bet on the fact that the entire "blackhole" and "margin decline", etc, will all add up to a VERY similar number as the price-tag of building a world class 5G network to span the entire Country
All conveniently hidden in the newly separated entities, all with good financial muscle, one could enter WHOLESALE energy (ie; production and networks) AND one could enter RETAIL!
Why not?
Look at the companies that came out of the US monopoly being split up, TLS is voluntarily being split up into different segments after being "bailed out" from their copper network at a great price, long-term we as shareholders should be able to benefit from an enormous amount of unlocked value.
The strength of each segment should not be underestimated at all, Infraco will take a substantial amount of the debt and still be very well capitalized, Mobile and NAS will have excellent economics including starting out with a conservative amount of very well priced debt, Infraco could be building out power generation and distribution with very well priced debt, NAS could providing network management solutions and Telstra retail could be retailing energy, possibly after taking out another platform like Red as others have suggested, no harm in going into Insurance, Home Loan broking, Banking, etc.
Why not take out ISU?
Plenty of opportunity once we get a few monkeys off our backs, and notice I haven't even mentioned the 5G advantage we will have? Which is being expanded everyday that TPM merger is not approved LOL
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