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Dave 4th May 2006 11:32 AM

Telecom Shares
If I was a Telecom shareholder I would probably be a bit miffed right now, given the plummeting share prices and the fact that Telecom has brought the current situation on themselves.

I understand that even if Telecom had done the right thing and given access to the local loop voluntarily, their share prices would still have taken a hit. But having the Government force the issue on them has made things a lot worse. Telecom knew this was coming but they chose to ignore warnings and let it happen. Now any control of the situation has been taken from them (and rightly so, since they haven proven themselves undeserving of retaining control).

I'm sure their share prices will bounce back though. In fact I'm so sure that I'm considering buying some shares during this downturn.

One other thing.... it seems that within minutes of the Government deciding to unbundle the local loop, Telecom's senior management had received a leaked copy of the decision. I think we should be worried about this. Exactly how far do Telecom's tentacles spread?

[Edit]: After I posted this entry the leak became headline news and has since been well covered in the media.

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