Question 1

Why is Telstra expanding into the Pacific market now?

Accepted Answer

The $US1.6 billion acquisition of Digicel Pacific secures a 2.5 million subscriber base and an impressive 54% EBITDA margin. This move is a cornerstone for Telstra’s T25 strategy, providing the necessary scale to reach its $7.5-$8.0 billion EBITDA target by FY23.

Question 2

Is 5G fixed wireless a genuine threat to traditional home broadband?

Accepted Answer

5G Fixed Wireless Access is forecast to seize 13% of the Australian household broadband market by 2025. Telstra’s new $85 monthly 1TB plan directly challenges the NBN by offering average evening speeds of 378Mbps at a $10 discount relative to standard NBN 50Mbps pricing.

Question 3

How is the satellite market shifting for enterprise users?

Accepted Answer

NBN Co is pivoting toward the enterprise and mobility sectors by filing for Earth Stations in Motion regulations with the ITU. This move counters Starlink’s aggressive entry, which currently offers 100-200 Mb/s speeds for a $139 monthly fee despite ongoing hardware supply constraints.

Question 4

What are the main risks associated with the Digicel acquisition?

Accepted Answer

The primary risk is technical debt and vendor misalignment, as Digicel’s current infrastructure relies on Huawei and ZTE. Telstra must execute a costly roadmap shift to replace these Chinese vendors and integrate the network with its own core technology partners.

Monthly Telco Roundup of Oct 2021

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team