$30b farewell gift from Telstra CEO
The split of InfraCo Fixed has the potential to create a business worth at least $30 billion, considering that it is seven times that of InfraCo Towers. Chanticleer’s $30 billion estimate assumes an EBITDA valuation of 20 times conservative. Those wishing to judge Penn on the decline in stock prices since his May 2015 appointment should not ignore the brutal external environment in the telecommunications sector during that period. Scramble for mobile market share In the last decade, the industrial economy has been very bad. Capital investment in fixed and mobile telephone infrastructure has doubled, but revenues have remained the same. Some observers will blame this on Penn and its partners, who are involved in the struggle for share of the mobile phone market. Penn made a conscious decision to maintain Telstra’s share of mobile and this helps explain why average revenue per user plunged in the four years leading up to 2020. Only in the last 18 months to two years the dynamics of th