Telstra has slashed its final dividend after a sharp slide in profit for the year to June 30 and shareholders have been warned to brace for an even bigger impact on its bottom line next year as a result of the NBN.
The 3.6GHz auction was in line with expectations although UBS observes regional prices were higher. Telstra won the most, with 143 lots for $386m. Dense Air was a surprise bidder, winning 29 lots. NBNCo was unable to bid except in regional WA.
Citi believes the future for 5G is bright, with incremental revenue from new business, particularly in the enterprise segment. However, most services will need much higher bandwidth and this cannot be delivered until additional spectrum becomes available, expected in FY21-22.