Telstra shares slump as TPG Telecom plans own mobile network

SINGAPORE (April 12): Telstra Corp., Australia’s former phone monopoly, slumped to a five-year low in Sydney trading after rival TPG Telecom spent A$1.26 billion ($1.32 billion) on airwaves as part of a plan to build a fourth mobile network in the country.

Telstra dropped as much as 7.2% before trading down 6.9% at A$4.245 at 11.28am local time. It’s heading for the lowest close since December 2012. Mobile services accounted for about 40% of Telstra’s earnings in the latest six-month period.

TPG, which offers fixed-line broadband services as well as third-party mobile services, plans to spend an additional A$600 million over three years rolling out its own network to cover 80% of Australia’s population, the company said Wednesday in a statement.

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