Value Investor: The NBN and two growing telcos

The NBN has lowered barriers to entry in the telecommunications sector, leaving two of Telstra's biggest rivals well placed to nab some of its market share.

The introduction of the National Broadband Network marks a transformation in the telecommunications market, with the government replacing Telstra as the monopoly network provider. This market structure is expected to increase competition among retail service providers due to lower barriers to entry.

Retail service providers with scale, a differentiated offering and/or low marginal costs will be best placed to take market share post the NBN rollout.

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