Investing in your ISP on the stock exchange
Many of the Internet Service Providers (ISPs) that provide broadband internet to your home are listed on the Australian Securities Exchange, or on overseas markets. As telecommunications is one of the fastest growing industries on the globe, which ones could you invest in?
In Australia, the four largest internet companies, TPG, iiNet, SingTel (Optus), and Telstra (BigPond) are all on the stock exchange. Plus, Vodafone and Virgin Mobile are global brands you can look at investing in on the larger multinational markets.
As of October 1, 2010, TPG shares opened at $1.53 per share, with a volume of 1,039,268 shares being traded on the previous day.
As of the same date, iiNet shares opened at $2.68 per share, with 46,237 shares sold on September 30.
The SingTel (Optus) share price opened at $2.46 with a total volume of 191,686 shares traded yesterday.
Meanwhile, Australia’s largest telecom Telstra (BigPond) opened at $2.64 per share, with a massive 22,871,398 securities being traded on and off-market yesterday.
TPG has recently attacked Australia’s broadband market with an aggressive approach, offering cheap prices for large amounts of download data. For example, one new TPG bundle plan offers unlimited ADSL2+ super-fast broadband for $29.99 when rented together with a $30 landline telephone.
TPG has also bombarded the community with advertising on TV, on trams and buses, as well as on humungous roadside billboards.
iiNet has taken its own powerful approach to the telecommunications industry by taking over several other Internet Service Providers, like Westnet, Netspace and AAPT.
Optus is the only company in Australia to have its own copper wire telephone infrastructure besides Telstra, and has been doing its utmost to prepare for the impending rush to fibre optic broadband.
Optus has also recently launched two satellites dedicated to broadband in order to pick up more market share in rural locations in the Outback.
Telstra is of course Australia’s telecommunications giant, as the Federal government previously owned it. Telstra has made recent deals with the National Broadband Network (NBN) Company, and has just changed many of its broadband plans in order to stay competitive in the industry.