I see substantial disruptive capability in Telstra
I see substantial disruptive capability in Telstra. We asked John Abernethy, CIO of Clime Asset Management, which companies he followed that had the ability to disrupt. I don't perceive that any Australian companies that we follow at Clime have proven disruptive outlooks. However, I do see substantial disruptive capability in Telstra as it unshackles it itself from maintaining the national telecommunication network. Telstra today has massive recurrent cash flows (enhanced by NBN agreement), large market shares and excellent brand recognition. It may well have its business challenged as new distributors enter its market, but Telstra has the potential to diversify its business across media, financial services, entertainment and other online industrial verticals. At this point it just has not extended itself but I perceive that they can. Indeed many so-called online incumbents in Australia would be seriously challenged if Telstra joined forces with smart entrepreneurs or startups.