On a positive day for much of the ASX, Telstra is down 2.48%, trading at $2.95 at time of writing.
Telstra has experienced a modest revival since it hit a low in late July:
The latest news out of the company is that it is investing heavily in 5G.
Telstra’s move to 5G starts with spectrum auction
The company announced on Monday that it had successfully secured between 30–80 MHz in the 3.6GHz auction held by ACMA.
The total investment amounted to $386 million and now leaves Telstra with 60MHz of contiguous 5G spectrum in all Australia’s major capital cities.
CEO Andrew Penn hailed the auction results, saying:
‘This is an extremely significant moment for Telstra and as we set out last week at our Investor Day, 5G will bring enormous opportunities for growth.’
Telstra has now switched on 130 5G-enabled sites across Australia and is aiming for 200 by the end of the year.
5G is the fifth generation mobile cellular network technology, which promises to substantially increase data speeds.
Analysts lukewarm on share price, Telstra changing approach
UBS has recently placed a $3 price target on the Telstra share price with a ‘neutral’ view.
Under its T22 strategy the goal is to simplify their business model to make the company more resilient against competitors.
Some of the proposed moves include cutting 8,000 jobs, removing corporate red tape and introducing transparent pricing for customers.
One thing holding Telstra back however, is its mountain of debt, which totals more than $15 billion.
There are also now fears that Telstra will eventually be forced to cut its dividend, which currently stands at 5.86%.
Markets & Money thinks there are other dividend stocks available that offer attractive yields and share performance.
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