Two Telecom stocks to buy – Telstra & TPG
First mover advantage: Telstra Corporation Ltd (ASX: TLS) stock recently reported that they are supporting the Australian Competition and Consumer Commission (ACCC) legal initiative against Vodafone regarding their decision on wholesale domestic mobile roaming. ACCC went against Vodafone decision of leveraging Telstra’s mobile infrastructure in regional and remote areas, where it has the least network coverage as compared to its peers. Moreover, recently ACCC decided to regulate high-speed internet services supplied by non-NBN fixed line networks. 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 two per cent of Australia’s population. Telstra believes that ACCC decision would give all telecos to have the opportunity to invest in regional Australia and ensure more people can enjoy the benefits of future technology upgrades. Customers can enjoy the opportunities and benefits that 4G and in the future, 5G would offer to rural and regional Australia. Accordingly, 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. An RSP would also need to be bought to Telstra’s wholesale line rental service, which is a further $20.69 per month.
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