Forum Archive Index - March 2004

["Karyn W" <karyn_in_oz@hotmail.com>]

There are several reasons why TLS shares have gone down lately, whilst TEL 
have gone up:
- Analysts believe Telstra has no clear strategy going forward, whereas TEL 
is working to its stated strategy and delivering on it.
- Media coverage of TEL in Australia has become highly favourable (an 
amazing thing considering how derogatory the press used to be towards TEL 
and TG), whereas TLS is receiving a seemingly  never ending stream of 
negative press.
- The recent ACCC competitive notice issued has set TLS up for multi-million 
dollar fines, and TLS actions are being read as encouraging other telcos to 
start building their own networks out again, really screwing the TLS 
wholesale strategy.
- Excellent results being recently reported by competitors that show steady 
market share gains from TLS, and improved profitability (eg. Uecomm, 
Powertel, Primus, SP Telecommunications, Optus).

Aust funds are moving into TEL for its consistency and yield, and into the 
others mentioned above for the growth prospects.  A good short term strategy 
would be to follow the money :-)

Karyn

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