Telstra Corporation Ltd in home energy battle with utilities

Could Telstra Corporation Ltd (ASX:TLS) begin offering energy solutions along with broadband bundles?

| More on:
a woman

You鈥檙e reading a free article with opinions that may differ from The Motley Fool鈥檚 Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Telstra Corporation Ltd (ASX: TLS) has signalled its intention to enter the home energy market, potentially offering solar and battery storage solutions to millions of Australians in direct competition with the major utilities.

As Telstra’s head of International & New Businesses, Cynthia Whelan writes on her corporate blog, “We see energy as relevant to our Connected Home strategy, where more and more machines are connected in what is called the Internet of Things.

Research has forecast an estimated 10 billion plus connected machines by 2019, from smart dishwashers that run themselves when energy costs are lowest, to an app integrating weather data with home thermostats, Ms Whelan added.

Telstra is installing solar systems and battery storage at a number of its exchanges, so it’s not like the telco has zero experience here.

Ms Whelan notes that Telstra connects more Australians to the things they love and enjoy than anyone else, via its broadband internet, landline phones, mobile networks and its half share in pay-TV operator Foxtel. The company obviously sees connecting Australians to other ‘smart appliances’ such as batteries and solar systems as a next step.

Telstra says that the number and diversity of ‘things’ to connect is rapidly increasing. Ms Whelan is putting together a team led by Ben Burge – who comes from online renewable energy company Powershop. The team will look at opportunities to help customers monitor and manage many different aspects of the home – including energy.

A number of commentators have warned that energy utilities face increasing competition from technology companies and unless they embrace new technologies, including renewables, they will be left behind to wither and die.

Origin Energy Limited (ASX: ORG), AGL Energy Limited (ASX: AGL) and Energy Australia are now offering renewable energy solutions to their customers in light of the looming threat to their traditional power businesses.

Foolish takeaway

We don’t yet know how Telstra will integrate energy solutions into its existing offering, but we’ve already seen M2 Group (ASX: MTU) – now part of Vocus Communications Ltd (ASX: VOC) – offering energy deals as part of its bundles through its Dodo brand.

That appears a logical first step for Telstra to take.

Motley Fool writer/analyst Mike King owns shares in M2 Group, Vocus and Telstra.聽You can follow Mike on Twitter聽@TMFKinga Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering adiverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on 鈴革笍 Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
鈴革笍 Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
鈴革笍 Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more

asx investor daydreaming about US shares
鈴革笍 How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more

person reading news on mobile phone
鈴革笍 Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more