TLS, TPG, CNU: Why did these telecom stocks remain in news today?

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Highlights

  • Today, the benchmark index ASX200 traded 1.630% lower at 7469.000 points at 2:13 PM AEST.
  • The S&P/ASX 200 Communication Services Index (ASX:XTJ) was down 0.344% at 1503.600 points at 2.03 PM AEST.
  • The number of internet users in Australia is expected to cross 23.3 million by 2025.

On the last day of this week, the benchmark index ASX200 traded 1.630% lower at 7469.000 points at 2:13 PM AEST. A total of 10 out of 11 sectors traded negatively today. The S&P/ASX 200 Communication Services Index (ASX:XTJ) was down 0.344% at 1503.600 points at 2.03 PM AEST. 

Although the Australian telecom industry is open to competition for carriers and service providers; however, most segments are led by just a few companies. The Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA) regulate this industry in the country.

Internet-supported mobile devices are used for daily activities like banking, news, social media, digital content, etc. Australia is actively progressing on a path to implement 5G technology across the country, giving rise to new opportunities and accelerating competition in the country’s broadband network. 

As per a report on digital and mobile trends, the total number of mobile connections in Australia reached close to 31.9 million in 2022.   

Over the last few decades, Australia has made considerable efforts to have a robust telecommunication network. 

The Australian telecom industry is seen as one of the most mature telecommunication markets globally. The number of internet users in Australia is expected to cross 23.3 million by 2025.

In the past, the government had also shown its commitment to developing the telecom infrastructure in the country. 

In this article we will talk about three ASX-listed communication stocks that have recently remained in the news. These include Telstra Corporation Limited (ASX:TLS), TPG Telecom Limited (ASX:TPG), and Chorus Limited (ASX:CNU).

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Telstra Corporation Limited (ASX:TLS)

Telstra shares were spotted trading 0.247% higher at AU$4.050 per share on ASX at 3:21 PM AEST today (April 22). The ASX-listed Australian telco giant has a market capitalisation of AU$47.11 billion. In the last one year, the share price of Telstra Corporation Limited has gained 19.12%, while the stock has fallen 4.03% year-to-date (YTD). 

The company paid a fully franked interim dividend of AU$0.080 per share to its shareholders on 1 April 2022. 

Last month, the telco struck an AU$187 million five-year deal with the Queensland government to provide faster internet speed at 1258 Queensland state schools. Meanwhile, the company is also targeting to extend the 5G network coverage to 95% of the country’s population by 2025.

TPG Telecom Limited (ASX:TPG)

The share price of TPG Telecom Limited (formerly Vodafone Hutchison Australia) was spotted trading 0.164% lower at AU$6.080 per share on ASX at 3:42 PM AEST on Friday. The ASX-listed telecommunication services provider has a market capitalisation of AU$11.32 billion. TPG shares have risen 4.20% in the last one year, while the stock is up 3.14% YTD. 

The company is believed to have made a distribution of AU$0.085 per share as a final dividend to its shareholders on 16 April 2022. Total dividends declared for 2021 were 53% of Adjusted Net Profit After Tax (NPAT), against the TPG Telecom’s policy of paying at least 50% of Adjusted NPAT.

The company’s proposed partnership with Telstra will give TPG access to Telstra’s 3700 mobile network sites. However, this is subject to ACCC approval. 

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Chorus Limited (ASX:CNU)

Today, Chorus Limited shares were spotted trading 0.296% lower at AU$6.730 per share on ASX at 4 PM AEST. The share price of Chorus Limited has gained 8.20% over the last one year, while the stock has fallen 2.18% year to date. Chorus Limited is an ASX-listed New Zealand based telecommunications infrastructure company with a market capitalisation of AU$3.01 billion. The company paid an interim dividend of AU$0.130 per share to its shareholders on 12 April 2022. 

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