Australian Telecom Sector

Share market analyst UBS has provided some dialogue to the Australian telecom sector.The analyst has reported an underperformance in TLS and TEL shares.TLS underperformed by 4% and has now given up all outperformance (peaking at c9%) since the ALP announced Fibre plans on 22 Mar. TLS outperformance since T3 (9-Oct) is now 2%. TEL underperformed by 1%.

Sharemarket analyst UBS has given an update for the Australian telecommunications sector: TEL outperforms: TEL outperformed reversing last weeks losses as structural separation gathers momentum. TLS performed inline but has outperformed by 4% since the ALP announced its FTTN plan on 22 March ($2.1bn value creation). SGT gave up gains despite Bharti rallying 7%.

Market analyst, UBS has the following market commentary with regards to the Australian telecommunications sector. TLS has performed in-line with the market (ASX200INDXF) ytd (+1.7%) with a nominal re-rating (+8.2%) driven by H107 results and a lack of a competitive response. SGT has underperformed (-8.8%) after outperforming in CYQ406 (+21%) while TEL continues to be plagued by domestic woes despite YPG sale optimism (-10.7%). A draft ACCC cost model prices MTA 50% below current rates (12c); TLS would be a net beneficiary everything else being equal.