John Linton .......but the screech owl and the dummies that allowed her to preside over the last days of our version of Rome in 44 bce remain pre-occupied with their 'super fast broadband at affordable prices'.
I have commented on the destruction of the Australian communications via the desperate whim of a grubby little man of zero knowledge and no ethics trying to prevent the populace from finding out about yet another of his blatant lies yesterday and previously - the stock market delivered its confirmation of that judgment yesterday after digesting David Teoh's "explanation" of TPG's financial projections for the coming twelve months. After extolling the huge successes that TPG had achieved over the previous twelve months he revealed that while TPG would grow in revenue in the new financial year it's profits would flat line. For the simple minded (like me) that seemed to indicate that TPG would have to sell more just to stay where it is today - in other words its overall business would become less profitable even if it did meet its new, increased, revenue targets.
The performance analysts immediately reacted changing their buy recommendations to their clients to either hold or sell. In turn the TPG share price (after David Teoh's presentation on how TPG had performed in the previous twelve months) fell by 9% having fallen more than 10% over the weeks leading up to announcements and briefing. The same analysts pushed Telstra's share price, already at a record low, another 3% lower as the evidence of a new fiercer stage of the ADSL price war became more evident (TPG trying to protect its customer base from Telstra's billion dollar funded 'welcome home' wars against all other Australian communications providers):
http://www.smh.com.au/business/little-joy-for-telstra-investors-20100922-15mzz.html
Now the ignorant populace (and the screech owl) probably don't read the financial press and also probably couldn't care less about prices of shares in companies they have never thought of buying nor think such things have any impact on anyone but 'the rich' who can own shares. They don't consider the impact on their own superannuation funds or the effect on Australia's "wealth" generally that pays for their CentreBet, sorry, CentreLink sources of income nor on the immense effect falling share prices have on every aspect of the Australian economy. I don't own shares in Telstra and I sold my TPG shares (on which I made a handsome profit thank you very much) a long time ago. But I do recognise that falling share prices in Australian communications companies do represent a loss of value in those companies which in turn represents a falling ability to finance future investment by those companies.
Ignoring the share prices, they are simply facts that support views that the 'NBN2' is destroying rather than enhancing the Australian communications industry, the reality is that TPG as the new 'shooting star' of Australian communications may well have reached its apogee and, another consequence of Telstra's 'welcome home' campaigns, will now struggle not only to maintain its momentum but to remain relevant in the very, very, high stakes gamble Telstra is now involved in courtesy of bus ticket planning. Irrespective of what happens in TPG's dealing with that scenario it underlines that ALL Australian communications companies are facing similar difficulties - simply stated - the whole industry is facing its own individual company's versions of Telstra's and TPG's falling worth....and the consequences of that quintessential aspect of company survival.
Australia no longer has a viable communications industry it has a back of the bus ticket political stunt driven by two pork barreled country con men and a screech owl desperate enough to sell her soul to keep her nose in the trough.
More bread, more circuses and more social service hand outs to keep anyone from noticing that something valuable is being destroyed with absolutely no plan as to how to replace it.
A small change to Australia's dreadfully mundane 'National Anthem' needs to be made - substitute "free' with "dumb" in the second line.
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