Report
Brian Han
EUR 147.86 For Business Accounts Only

Game of Groans as Convergence Moves in U.S. Spell Nervous Times for Domestic Telecoms

Our advice for Australian and New Zealand telecom companies in light of AT&T's proposed takeover of Time Warner is this: Don't do it.
In theory, a distribution company buying a content entity makes strategic sense. However, operating synergies and cultural integration are much more difficult to achieve in practice than on spreadsheets and PowerPoint slides. Domestically, there are specific reasons why we would take a dim view of a telecom company following in AT&T's footsteps.
First, the...
Underlying
Telstra Corporation Limited

Telstra is engaged in providing telecommunications and information services for domestic and international customers. Co.'s operating segments are Telstra Retail, Global Enterprise and Services, Telstra Operations, and Telstra Wholesale. As of June 30 2016, Co. provided retail fixed data services to 3.4 million customers, retail fixed voice services to 5.7 million and domestic retail mobile services to 17.2 million customers.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Brian Han

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