The SatCom Shakeout
The satellite communications sector of the marine market has not been immune from the corporate consolidations that have swept all other corners of the industry, and while this particular niche has been widely regarded as fragmented, it is yet to be seen what the end effect will be for the communication users. However, it can be assumed that competition is still keen, and the name of the communication game continues to center on quality, reliability and capabilities. With an increasing emphasis on the transmission of data rather than traditional voice or fax, it can be assumed that continued efforts will center on widening the information "pipeline" between vessel and shore.
Reprieve Expected to Aid Telstra's Offshore Issues
Now that British Telecommunications' jumbo $10 billion global bond issue is out of the way, Australian Telstra's offshore issues, clear losers in recent sessions, can expect a slight reprieve, analysts said on Wednesday. But while their spreads were unlikely to narrow much near-term, buying opportunities were emerging for medium to longer term investors, said National Australia Bank's senior analyst Phillip Strano. Telstra's offshore issues not only offered considerable margin pick-up over comparable domestic issues, but also superior credit protection over many of its European counterparts, Strano said. For example, the telco's U.S. dollar issue due 2005 was trading at around 80 basis points over swap while its domestic 2006 issue was trading at some 50 basis points.
