Telstra’s NBN guarantee

The new government is reviewing the NBN. What does that mean for the widest held stock in the land and its juicy 5.6% dividend yield?

If you haven’t done so already, send Sol Trujillo a Christmas card. The bristly former Telstra chief executive may have unwittingly laid the groundwork for Telstra’s current success. Trujillo’s antagonistic approach, in particular with government, meant his replacement, David Thodey, was almost guaranteed to appear accommodating and pragmatic.

This worked a treat when the then Labor government decided it was fed up with waiting for fast broadband infrastructure and commissioned the National Broadband Network (NBN).



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