Will Subsea Cables Save The Telstra (ASX:TLS) Share Price?

Telstra is Australia’s largest and oldest telecommunications business, … the Australian Government sold Telstra to Australian investors via the ASX.

Could subsea cables save the Telstra Corporation Ltd (ASX: TLS) share price?

Telstra is Australia’s largest and oldest telecommunications business, having built the first telegraph line in 1854. Today, it provides more than 17 million retail mobile services, nearly 5 million retail fixed voice services (e.g. home phones) and 3.6 million broadband services.

It also has operations stretching across eHealth, network applications and subsea cabling. Starting in 1997 (until 2006), the Australian Government sold Telstra to Australian investors via the ASX. The second batch of Government share sales, called “T2”, was conducted in 1999 at $7.40 per share.

Telstra’s subsea cables

Telstra is committing to a major upgrade of its submarine cable network according to the Australian Financial Review.

Australia’s largest telecommunications business has cables that run from Australia to many countries in the Asia Pacific region including to the United States of America.

Telstra will use US business Infinera to upgrade its huge network of submarine cables, which should increase the capacity of the cables by 160% whilst lowering the power usage.

These cables are important for the high volume of data from services like Netflix and Youtube. Around 40% of all Asian data traffic may be transmitted on Telstra’s cables, which is valuable.

It’s good to see that Telstra is continuing to develop its ‘InfraCo’ infrastructure business. Telstra doesn’t have to rely on just job cuts to send its profit higher. Initiatives such as huge data packs and soon-to-be-released 5G phones could boost profit over the next few years.

However in the meantime, the NBN is still causing damage to Telstra’s profit margins so it’s not all good news. Competition from peers like TPG Telecom Ltd (ASX: TPM) and Amaysim Australia Ltd (ASX: AYS) is really heating up.

Is the Telstra share price a buy today?

Some value investors believe that Telstra now represents good value, even if its earnings take a hit in FY19. Some analyst estimates put Telstra’s earnings dropping by at least 25% in FY19, so it could be valued at around 13 times FY19’s earnings.

There some compelling reasons to buy Telstra, such as 5G, automated cars and the Internet of Things. However, until we find out what the pricing structure of those services is I can’t see sustainable growth of Telstra’s bottom line. There may be more reliable ASX shares out there for your portfolio such as the ones mentioned in the free report below.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

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Telstra partnerships boost subsea cable infrastructure

Telstra’s customers across Asia Pacific will soon be able to take advantage of major major boosts to Telstra’s network services and subsea cables.

Telstra’s customers across Asia Pacific will soon be able to take advantage of major major boosts to Telstra’s network services and subsea cables.

The first partnership is between Telstra and Infinera, which will upgrade Telstra’s subsea infrastructure to include Infinera’s Infinite Capacity Engine 4 (ICE4).

The ICE4 subsea solution is being rolled out across Telstra’s entire Asia Pacific subsea infrastructure, which will allow for a 160% fibre capacity boost and a 140% port capacity boost.

Telstra says the upgrade will not only increase the network’s capacity, agility, and reliability – it will also allow the company to rapidly activate new capacity for customers.

“Our commitment to our Asia Pacific customers means we are always adapting and creating capacity where it is needed. This means we are continually working to deploy new technologies that enhance our existing network and complement our latest capacity investments,” says Telstra network planning principal Andy Lumsden.

“With Infinera’s ICE4 optical engine, we are deploying the latest technology across our network. We can now provision new services faster than ever before, which is critical in a region when capacity demand on our international networks has almost doubled over the past two years.”

The new ICE4 technology will support customers’ future connectivity needs, which could bring capacity per wavelength of up to 200 Gigabytes per second.

According to Infinera’s vice president of sales, Andrew Bond-Webster, early testing on the ICE4 rollout had delivered strong results.

“ICE4, our latest optical engine, enables Telstra to deliver multi-terabit capacity cost effectively with low power consumption and with the reliability required for subsea networks to perform,” he says.

“We have partnered with Telstra for a decade, and work collaboratively to co-create solutions that respond rapidly to changing data consumption and the growth of bandwidth-heavy applications.”

Telstra expects the ICE4 network upgrade to be completed in the coming months.

Telstra also says it is one of the largest providers of 100 Gigabit per second network services globally. It also has one of the largest subsea cable networks worldwide, spanning more than 400,000 kilometres.

Recently Telstra announced additional capacity to its New Cross Pacific cable, and investment in the Faster cable. Both investments will strengthen Telstra’s reach from the Japan to the United States route.

In December, Telstra entered into agreed terms to purchase a 25 per cent stake in Southern Cross Cable Network (SCCN). Subject to definitive agreements and regulatory approvals, the agreement includes capacity on the existing Southern Cross network and new Southern Cross NEXT subsea cable – set to become the lowest latency path from Australia to the US.

Telstra has also partnered with Ericsson and Ciena to build a rapid restoration service on its busiest subsea cable routes in Asia. The service is now available on three of Telstra’s intra-Asia routes.

The Asian region presents one of the most challenging environments for subsea cable systems. Busy and shallow shipping ports in Hong Kong and Singapore, high-levels of fishing activity and an ecosystem prone to natural disasters, all threaten to disrupt or damage underwater infrastructure,” explains Telstra’s head of connectivity and platforms, Nadya Melic.

“Damage to a subsea cable can take weeks or even months to fix. But with our new continuous connection service, we are able to reroute customers impacted by potential damage to another subsea cable path on our three path network in less than 30 minutes.”

“Through Telstra’s large subsea cable footprint and Ciena’s innovative technology, we are able to help remove the pain of an extended outage from our customers, with almost seamless restoration of their services.”

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Telstra Deploys Major Upgrade to Network Services in Asia Pacific

Telstra and Infinera (NASDAQ:INFN) on Sunday unveiled a major upgrade to Telstra’s network services in Asia Pacific for a significant increase in fibre …

As part of an ongoing partnership, Infinera’s fourth-generation ICE4 optical engine is being rolled out across Telstra’s Asia Pacific subsea infrastructure, increasing the capacity, agility and reliability of Telstra’s network.

The ICE4 subsea solution allows Telstra to rapidly activate new capacity for customers, delivering multi-terabit capacity with low power consumption and high reliability.

ICE4 increases Telstra’s fibre capacity by 160 per cent and port density by 140 per cent, while also decreasing power consumption, allowing Telstra to continually improve network services for customers.

Telstra is one of the largest providers of 100 Gigabit per second (Gb/s) network services globally and the ICE4 technology positions the company to support customers’ future connectivity demands, activating capacity per wavelength of up to 200 Gb/s.

Telstra’s Network Planning Principal, Andy Lumsden, said that Telstra was committed to continually developing its network to support the increasing demand for data right across the Asia Pacific region.

“Our commitment to our Asia Pacific customers means we are always adapting and creating capacity where it is needed. This means we are continually working to deploy new technologies that enhance our existing network and complement our latest capacity investments,” Mr Lumsden said.

“With Infinera’s ICE4 optical engine, we are deploying the latest technology across our network. We can now provision new services faster than ever before, which is critical in a region when capacity demand on our international networks has almost doubled over the past two years.”

Telstra has the largest subsea cable network in the Asia Pacific, reaching more than 400,000km and enough to circle the world almost 10 times.

Infinera’s Vice President of Sales, Andrew Bond-Webster, said early testing on the rollout had delivered strong results.

“ICE4, our latest optical engine, enables Telstra to deliver multi-terabit capacity cost effectively with low power consumption and with the reliability required for subsea networks to perform,” Mr Bond-Webster said.

“We have partnered with Telstra for a decade, and work collaboratively to co-create solutions that respond rapidly to changing data consumption and the growth of bandwidth-heavy applications.”

Telstra’s ICE4 network upgrade will be completed in the coming months.

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Boost Mobile Sign On as Title Sponsor for Opening Event of 2019 Women’s Championship Tour

Boost offers 3G and 4G services on the Telstra Mobile Network. The Telstra Mobile Network offers 4G in all capital CBDs and associated airports, most …

World Surf League: Coolangatta, QLD / AUS (Monday, January 21, 2019) – The World Surf League (WSL) is excited to announce that Boost Mobile has signed on as Title Sponsor for the opening event of the 2019 Women’s Championship Tour (CT) on the Gold Coast. The Boost Mobile Pro will run at Snapper Rocks from April 3 – 13 and make history as the first CT event to award equal prize money following WSL’s groundbreaking commitment in September of 2018.

“We’re really happy that Boost Mobile has come on board to support the season opener and are thrilled that they are partnering with us to put on one of surfing’s most iconic and historic competitions,” WSL CEO Sophie Goldschmidt said. “The 2019 women’s Championship Tour is set to be our most exciting season yet with the introduction of equal prize money being rolled out across our events, the first of which will be the Boost Mobile Pro on the Gold Coast”.

Current World No. 6 Sally Fitzgibbons (AUS), is no stranger to success at Snapper Rocks with four Semifinal appearances and one Final at the famed point break.

“What an epic new look having Boost Mobile partner with WSL for the women’s Gold Coast Snapper Rocks event,” Fitzgibbons said. “It is such a significant time in women’s surfing and I feel empowered to be part of the sport and what it represents. With the added energy of youth brand, Boost Mobile as a sponsor, it’s sure to be one awesome show for Stop No. 1 on the 2019 Women’s Championship Tour!”

11-time WSL Champion Kelly Slater (USA) is excited to return to full-time competition at stop No.1 on the Gold Coast, particularly given the historical significance of the event.

“The women on the tour deserve this change,” Slater said. “I’m so proud that surfing is choosing to lead sports in equality and fairness. The female WSL athletes are equally committed to their craft as the male athletes and should be paid the same. Surfing has always been a pioneering sport, and this serves as an example of that.”

Boost Mobile has a long and supportive history with professional surfing, one that will continue to make waves in 2019. Boost Mobile will endeavour to bring fans closer to their favourite sport, no matter where they are, with some of the most competitive new prepaid plans on the Telstra Mobile Network*.

Boost Mobile General Manager Jason Haynes said, “We’re excited and proud to continue and grow our partnership with the World Surf League here in Australia in 2019, kicking off as Title Sponsor for the Boost Mobile Pro. The gender equity policy changes in surfing are important, they matter to our customers, competitors and the community at large. We look forward to supporting this historic event, whilst giving our customers and fans an incredible experience and access to the world’s best surfers as they compete to become WSL Champion, and are rewarded as they deserve.”

The Boost Mobile Pro will run from April 3 – 13, 2019 on the Gold Coast and open the women’s Championship Tour season. For more information head to www.worldsurfleague.com.
About the WSL

The World Surf League (WSL) is dedicated to celebrating the world’s best surfing on the world’s best waves through a variety of best-in-class audience platforms. The organization, headquartered in Santa Monica, is a global sport with regional offices in Australasia, Africa, North America, South America, Hawaii, Japan and Europe.

The WSL has been championing the world’s best surfing since 1976, annually running more than 180 global events across the Men’s and Women’s Championship Tours, the Big Wave Tour, Qualifying Series, Junior and Longboard Championships, as well as the WSL Big Wave Awards. The League possesses a deep appreciation for the sport’s rich heritage while promoting progression, innovation and performance at the highest levels, and in doing so crowns the undisputed Men’s and Women’s World Champions across all tours.

Showcasing the world’s best surfing on its digital platform at WorldSurfLeague.com, the WSL has a passionate global fan base with millions tuning in to see world-class athletes like Kelly Slater, Stephanie Gilmore, Tyler Wright, John Florence, Lakey Peterson, Paige Alms, Kai Lenny, Carissa Moore, Gabriel Medina, Courtney Conlogue, Mateus Herdy, Kirra Pinkerton, Steve Sawyer, Soleil Errico and more battle on the most dynamic field of play of any global sport.


For more information, please visit WorldSurfLeague.com

About Boost Mobile
Since humble beginnings in August 2000, Boost Mobile has established itself as a leading mobile youth brand. We’re here to give you more…

Dedicated to putting customers first, the team at Boost Mobile is always pushing hard to bring consumers the best network coverage, fastest speeds, best data plans, no lock-in contracts and great service – all on the 4G Telstra Mobile Network – a network you can trust. We’ve teamed up with this country’s hottest artists, athletes, parties and events to bring you more rewards, content and VIP access just for being with us.

Disclaimer:
Boost offers 3G and 4G services on the Telstra Mobile Network. The Telstra Mobile Network offers 4G in all capital CBDs and associated airports, most surrounding suburban areas and in over 600 regional towns. You’ll automatically switch to our fastest available 3G in other coverage areas around Australia. Check coverage at telstra.com/coverage.

All inclusions are for use in Australia.

For terms and conditions, please visit www.boost.com.au

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Telstra remains Australia’s most valuable brand, while Qantas is the strongest

Telstra has held onto the crown of Australia’s most valuable brand for the fourth year running, while Qantas has surged to become the country’s …

“We’ve really started to put forward the improvements we’ve made in the customer experience, the removal of the data overages, the ability for customers to add on services easily,” Mr Nicholas said.

Telstra is in the middle of its massive Telstra2022 transformation project. Customer experience is a key area the telco is revamping with greater digitisation and automation.

In terms of brand marketing, Mr Nicholas said the telco continued to use a broad mix of channels.

Banks under fire

Last year’s No.2 and No.3 most valuable brands – Commonwealth Bank of Australia and ANZ – slipped off the back of renewed negativity towards the finance sector thanks to the banking royal commission, recording brand values in 2019 of $10.6 billion and $9.1 billion respectively.

Jumping up ahead of the two big banks were supermarket giants Woolworths, coming in second with a brand valuation of $11.2 billion, and Coles, at third with a brand valuation of $11 billion.

“There is a view banks were profiteering, there previously has been other negative publicity. Some of that consumer reaction has been ‘not surprised’. This decline in brand strengths is a very significant [part] of how they might lead to a decline in brand revenues,” Mr Crowe said.

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“As much as there has been downward pressure on the banks, the retailers have performed strongly. What you’ve seen is strong customer metrics and very positive brand investment, both scoring well in promotions.

“If current growth trends were to continue, Woolworths will again challenge Telstra for the most valuable Australian brand in coming years.”

National Australia Bank managed to hold onto sixth ranking, with its brand value actually increasing to $8.6 billion, while Westpac slipped to eighth, from seventh last year, to a brand valuation of $7.3 billion.

BHP took out seventh spot with a brand value of $8.3 billion, while Optus came in at $5.3 billion and Rio Tinto at $4.7 billion.

Qantas takes off

Meanwhile in brand strength, Qantas surged into No.1 position, taking the title from Commonwealth Bank, which fell to seventh. Brand strength is based on marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation.

“Qantas’ brand performance is quite exceptional given that enterprise value has decreased by 8 per cent,” Mr Crowe said. “This result highlights the importance of the iconic brand to the company as it deals with increasing competition on its domestic and international routes.”

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Qantas’ brand strength surged in 2019.Peter Braig

“Brands in the airline sector have been to the fore in Australian aviation with both Jetstar [owned by Qantas] and Virgin Australia also recording strong increases in value.”

Mr Crowe said Qantas had benefited from the rebranding it did in 2016 and significant marketing investment.

“We’ve spent almost 100 years building our brand but a large part of that is making sure you deliver every day for customers,” Qantas chief customer officer Vanessa Hudson said.

“The expectation of a brand has to meet the reality and we invest a lot in making sure we improve on both.”

Virgin Australia came in as the third-strongest Australian brand, behind Harvey Norman at No.2.

Optus at fourth pipped rival Telstra at fifth in terms of brand strength, while Westfield jumped from outside the top 10 to sixth.

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