Talk about IT - What is Telstra's core network worth? (4 posts)

What is Telstra's core network worth? The ACCC says it sits at just under $8 billion while the telco says it comes closer to $33 billion. One IDC analyst has said the equities analysts usually say it is between $8-20 billion. What is more likely in your opinion?

When valueing an asset for compulsary acquisition it is normal to include reasonable future earnings of that asset by way of compensation for investment made in that asset with expectation of a commercial return. By that reasoning, Telstra is owed much closer to the higher end of estimates than the lower.

What people forget is that a big percent of the system was constucted years before telstra shareholders existed.I remember digging trenches by hand fifty years ago,all at taxpayers expence.Those trenches ,pipes and manholes still exist to this day still doing sterling service. Perhaps that should be taken into account when valuing telsta. Waybe the taxpayer is going to be charged twice.

$T = -$2 After separation I

$T = -$2

After separation I think the lower end of the estimates...

Soo good points raised here for $8-10bn http://www.brisbanetimes.com.au/business/telstra-will-eventually-cop-the-cash-20091027-hj50.html