TLS telstra group limited

where was telstra's pr team on this?

  1. 210 Posts.
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    News article appears on Australia's number 1 news site bashing Telstra and other big telcos using flawed reasoning. Article is found here:

    http://www.news.com.au/finance/busi...d/news-story/3a993d174effe6093fe4721853e92d58

    Author essentially accuses Telstra of ripping Aussies off because of its 40% operating profit margin. It ignores the fact that the 40% profit margin doesn't take into account costs to sustain and upgrade their telecommunication assets, nor does it consider the fact that shareholders are entitled to a fair rate of return on invested capital. The article also goes on to point out how TPG will be the Aussie consumer's saviour in the face of the big bad telco's, by offering lower prices.

    Writer of the article invited Telstra for comment but Telstra declined to comment.

    It probably would've taken 30 minutes tops for someone at Telstra to refute the notion that Telstra's "too profitable" . Instead they've chosen to let it go unchallenged, so challengers like TPG gets a free leg up in the form of favorable press. How it could possibly be in Telstra's interest to decline to comment on this widely read piece of commentary? It's things like this that makes me pessimistic about management calibre and their ability to turn things around.
 
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