Shares in Aussie telco giant Telstra plunged to a six-year low today as it warned that full year profits were likely to be down at the lower end of guidance.
Telstra said it expected full year EBITDA to be at the bottom of the AU$10.1bn-10.6bn range, while income will be around the middle of AU$27.6bn and AU$29.5bn.
In a speech due to be delivered at a JP Morgan TMT conference in Boston tomorrow, Telstra chief exec Andy Penn will explain that the company is facing increasing pressure on its mobile and fixed line subscribers due to the roll-out of the government-funded National Broadband network.
He will go on to say that Australia's new NBN model has essentially "re-nationalised its fixed access last mile of telecoms infrastructure."
This has in turn turned Telstra into a reseller of broadband services along with other operators.
"This is having a very material impact on the economics of the whole industry and has triggered a step change in the competitive environment," he will state.
"In the last 12 months alone we have moved from three big players in mobile and fixed to a situation today where we face a fourth network operator entrant in mobile, an increasing number of MVNOs (mobile virtual network operators) and more than 170 resellers of fixed."
Shares in the company, which is listed on the Australian stock exchange, nosedived during trading overnight, finishing up at 3.04 AU$.