In what is being hailed as a victory for common sense, The Australian Consumer and Competition Commission (ACCC) has rejected NBN Co's pricing and access proposals for the National Broadband Network (NBN).

The decision is a victory for Optus – owned by Singapore Telecommunications (ASX: SGT) and Telstra Corporation (ASX: TLS), who have been vocal in their protests over NBN access and pricing. Optus called the decision a "victory for common sense", and said that the company was pleased the ACCC understands the concerns raised by industry and suggested some important changes that need to be made to pricing and access arrangements.

The ACCC has called for further changes to NBN Co's special access undertaking (SAU), the document that outlines pricing and access arrangements for the next 30 years. The commission suggested that it needs to include measures enabling it to enforce caps on broadband prices and to review usage charges over time. As Optus' director of corporate affairs and regulatory affairs, David Epstein told the Australian Financial Review that, "We can't predict the shape of technology or the thinking of NBN executives for 27 years, such agreements need real reviews periodically."

One of the key issues of contention between NBN Co and industry players was oversight of NBN Co. One of the variations includes explicitly noting the ACCC's ability to directly regulate pricing in future.

As iiNet Limited (ASX: IIN) chief regulatory officer Steve Dalby said, "The regulatory uncertainty and the unreasonable term of the SAU have always been a concern." Macquarie Telecom's (ASX: MAQ) Matt Healy is also reported to be pleased with the ACCC's decision on key issues.

Foolish takeaway

With the NBN rollout months behind schedule, issues with its subcontractors and unlikely to meet the targets it had originally set for June this year, this latest news is yet another setback for NBN Co. With an election due in September, NBN Co will be under the pump to lift their game.

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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned.

The post NBN agreement rejected by ACCC appeared first on The Motley Fool Australia.

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Apparently the National Broadband Network (NBN) rollout is on target.

NBN Co, the government owned organisation responsible for building the NBN says that it has exceed its target to have construction commenced or completed in areas covering 758,000 premises before the end of 2012.

The total number of premises was 784,592 by year end, although NBN Co notes that construction commencement is measured when the company issues instructions to its contractors for a Fibre Service Access Module (FSAM), not when the contractor actually starts laying fibre.

The company did not say how many users had been connected to the NBN, which so far have been a disappointment. The company says it usually takes 12 months from the start of work until homes and businesses can connect.

In December last year, Communications Minister, Stephen Conroy said the take up rate was around 25%, or 1 in every 4 people. Opposition MP, Malcolm Turnbull has criticised the government suggesting that 75% of people haven't been convinced to switch over, and the take-up rate is well below the NBN's corporate plan released in 2010.

For telecommunications companies including the big four, Telstra Corporation (ASX: TLS), Optus – owned by Singapore Telecommunications (ASX: SGT), TPG Telecom (ASX: TPM) and iiNet Limited (ASX: IIN), the NBN offers an opportunity to provide faster services to their customers, but also a complication.

With wireless broadband services becoming ever popular, and the speed of 4G networks even outpacing copper ADSL broadband, users may opt to pass on fixed broadband, and use wireless instead. Despite the NBN's predominantly fibre broadband being able to offer much higher speeds, users may choose the flexibility of wireless over speed.

The Foolish bottom line

2013 is election year, and the Federal opposition is no fan of the current NBN plan. Should we have a change of government later this year, we could see the current NBN rollout grind to a halt.

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Motley Fool writer/analyst Mike King doesn't own shares in any of the companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post NBN rollout on track appeared first on The Motley Fool Australia.

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Giant Telco, Telstra Corporation (ASX: TLS) has highlighted expansion into Asia as one of the company's strategic priorities.

According to the Australian Financial Review (AFR), Telstra plans to target big corporate customers expanding into Asia. With the Australian Consumer and Competition Commission (ACCC) signalling it will block moves by the telco to expand its Australian media business, the company's move into other markets and its cloud computing business are becoming increasingly important.

Telstra is reported to have considered a bid for Consolidated Media Holdings (ASX: CMJ) but the ACCC kyboshed the deal, most likely because it would have taken Telstra's  stake in Foxtel to 75%, and a 50% share in Fox Sports. Telstra already owns one of the nation's largest media portfolios, with its existing 50% stake in Foxtel, Yellow and White Pages and a suite of BigPond websites and products. The portfolio is estimated to be worth up to $5 billion, according to the AFR.

News Corporation (ASX: NWS) looks set to takeover Cons Media, after getting the green light from the ACCC recently, giving it a 50% share in Foxtel, with Telstra holding the other 50%. The ACCC's decision to block Kerry Stokes' Seven Group Holdings (ASX: SVW) bid for Cons Media, also indirectly prevents Telstra from expanding into free-to-air television.

Telstra also faces some additional risk to its chances of receiving payments of $11 billion from NBN Co, as part of its agreement to lease infrastructure to NBN Co and gradually move its customers off its ageing copper network onto the high-speed optical fibre National Broadband Network. Should the Coalition gain power at the next Federal election, those agreements may be in jeopardy, with the party planning to scale back the NBN, which would likely result in lower payments to Telstra.

Still, Telstra's mobile division is powering ahead, and appears to be stealing market share from Optus and Vodafone. Its superfast 4G network has no peers in Australia, with Optus only just now rolling out 4G services in one or two capital cities and just to business customers, while Vodafone won't have a 4G network ready until 2013.

Foolish takeaway

Combine the results of its mobile operations with its other businesses, potentially higher dividends in future, and its expansion plans and Telstra certainly looks worthy of adding to your watchlist.

If you only invest in one company this year, make it our "Top Stock for 2012-13". Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Telstra's Asian strategy appeared first on The Motley Fool Australia.

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After paying 28 cents a year in dividends for the last six years, an increase in Telstra's dividend could be on the cards.

Australia's largest telecommunications company, Telstra Corporation (ASX: TLS) re-affirmed that it would pay a fully franked 28 cent dividend in the 2013 financial year.  In 2014, dividends will be considered on a half-yearly basis, and Chairman Catherine Livingstone has said that the company aims to increase dividends over time.

Telstra is transitioning from a business delivering voice over phones, to one delivering data over devices. Mobile network traffic is doubling every year – not hard to see when 50% of mobiles are smartphones, and smartphones and tablets are more popular than PCs. Telstra also announced that the day after Apple launched the iPhone 5 was its biggest retail trading day ever, and the company has sold 100,000 iPhone 5s since then. Its fastest mobile network, 4G covers 40% of the population and Telstra is investing $1.2 billion to expand coverage to two-thirds of the population.

Telstra have stated that mobile broadband is more popular than fixed broadband – despite the slower speeds available on mobile versus fixed – which could have consequences for the NBN fixed network. Despite the popularity of mobile, the company's fixed line network is experiencing more than 50% annual growth in data traffic, primarily driven by video in the consumer market. Telstra has now sold more than 400, 000 T-boxes, a device which allows users to access Foxtel and download movies from Bigpond over a broadband connection.

The company also confirmed that it is accelerating the delivery of infrastructure to NBN Co, across this year and FY 2014, to bring forward benefits from the NBN Agreements (Call me sceptical, but is that so that revenues are received before the next Federal election, and to mitigate risks of Liberal government taking office?)

All-in-all, Telstra is taking the fight to its competitors, Optus – owned by Singapore Telecommunications (ASX: SGT) and Vodafone – part owned by Hutchison Telecommunications (ASX: HTA). Vodafone doesn't even have a 4G network yet, and Optus has only just started rolling out its own. With the company due to receive $11 billion in compensation as the NBN rolls out, continued phenomenal growth in mobiles and data, should see Telstra maintain or even increase its edge over its rivals.

The potential for higher dividends in future is the icing on the cake.

If you only invest in one company this year, make it our "Top Stock for 2012-13". Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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