qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer tyuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklzx cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmrty uiopasdfghjklzxcvbnmqwertyuiopasdf

ghjklzxcvbnmqwertyuiopasdfghjklzxc
Telstra Report 10/20/2012 Swinburne University

SANKET DAGA ALI.N.CHEEMA ZOHAIB YOUSAF October 20th, 2012 Swinburne University of Technology (Graduate School of Business) Dear Ewa Banasik, Please find attached the report of the detailed analysis on Telstra Corporation that emphasizes on the financial methods used by the company and the implications of these financing decisions on the operation of the company. This report also highlights some of the key aspects like the analysis of profit/loss/balance sheet, share price fluctuations, competitiveness of the company, economic analysis, and finally addresses the Global Financial Crises and how this affected Australia. We also will be discussing the after crises period for Australia. Members of this group were Ali Cheema(7012918), SanketDaga (7263104) and ZohaibYousaf (1786008). This report is written as a part of the course work. Thank you for giving us the opportunity to work on this report.

Sincerely,

SanketDaga (On Behalf of the Group)

Table of Contents
Executive summary: ...................................................................................................................................... 5 Introduction: ................................................................................................................................................. 6 Purpose ..................................................................................................................................................... 6 Methodology............................................................................................................................................. 6 Assumptions.............................................................................................................................................. 6 Limitations ................................................................................................................................................ 6 TELSTRA CORPORATION: .............................................................................................................................. 6 Background: .............................................................................................................................................. 6 Technology and innovation and growth: .................................................................................................. 7 Sector analysis: ............................................................................................................................................. 7 The Billion Dollar Market: ......................................................................................................................... 7 Broadband market: ................................................................................................................................... 7 Mobile market: ......................................................................................................................................... 8 Market Highlights:..................................................................................................................................... 8 Ratio Analysis ................................................................................................................................................ 8 Return On Equity....................................................................................................................................... 9 Earning Per Share (EPS)........................................................................................................................... 10 Return on assets ..................................................................................................................................... 10 Dividend Yield ......................................................................................................................................... 11 Payout Ratio ............................................................................................................................................ 12 Interest Coverage Ratio .......................................................................................................................... 13 P/E Ratio.................................................................................................................................................. 13 Evaluation of Share Price for Intrinsic Value use constant growth model ............................................. 14 Global Financial Crises: ............................................................................................................................... 15 Background: ............................................................................................................................................ 15 The Bubble Burst:.................................................................................................................................... 15 The Australian effect: .................................................................................................................................. 16 Real Estate: ............................................................................................................................................. 16 Regulatory Control: ................................................................................................................................. 16 Currency and Unemployment:................................................................................................................ 17 The Australian Strategies: ....................................................................................................................... 17 3

ASX :Australian Securities Exchange ....................................................................................................... 17 BANKS: Risk Management ...................................................................................................................... 18 Government Response: .......................................................................................................................... 18 Economic level: ....................................................................................................................................... 18 Similarity between Australian Strategies and Keynes Theory: ................................................................... 19 Global Economic Outlook: THE FUTURE ..................................................................................................... 20 Global Outlook for Growth of Gross Domestic Product, 2012-2025 (January 2012) ............................ 20 Conclusion: .................................................................................................................................................. 21 References: ................................................................................................................................................. 22

Executive summary:

This report mainly concentrates on the company selected Telstra Corporation Limited. The report begins with highlights and background of the company. Followed by information on how Telstra is still the market leader due to the companys high investment in technology and innovation. Optus being the biggest competitor of Telstra we then focus on the sector analysis and the investment decisions made by Telstra. In-spite of minor economic slowdown Telstra has still managed to expand its business to more than 15 countries. A detailed ratio analysis report has been presented comparing Telstra and Optus. The share price calculation and shares purchase details have also been presented. Finally we addressed the Global Financial Crsises, how the crises affected Australia, how Australia sustained the crises, the link to Keynesian theory and finally the future global economic outlook has been presented.

Introduction: Purpose The main purpose of this report is to analyze and clearly demonstrate thorough research about the telecom industry in Australia. The company we have chosen s TELSTRA which is based Australia and is a global player in the telecom sector. We address the Global Financial Crises (GFC), how GFC affected Australia, we also analyzed the issues the organization facing in terms of competitiveness. This report includes analysis of the telecom industry, financial ratios and share price fluctuations of TELSTRA Methodology All the information used in this report is from secondary sources. A number of readings from academic journals, prescribed textbooks, company reports and various articles have been taken in order to analyze the key financial ratios, share price fluctuations, profit/loss/balance sheet of the company and also in order to address the GFC issues. Assumptions It was assumed that the information provided in the companys website and other reports are accurate and reliable. Furthermore, the secondary sources that support the theories and concepts are presumably relevant to the case of TELSTRA. Limitations There has been a dearth of primary information due to confidentially of such data, including internal strategies of TELSTRA that make it difficult to perform a detailed analysis. Therefore, the outcome may not reach the expectations as desired. TELSTRA CORPORATION: Background: Telstra Corporation Limited is an Australian multi-billion dollar telecommunications and media company which has a significant presence in telecommunications networking, mobile services, internet services, directories, publishing, advertising and subscription television. Telstra has managed to remain the largest service provider in the Australian telecom industry. The companys headquarters is based in Melbourne (Australia) and employs approximately 40,000 people. Telstra was founded in 1975 and was originally a part of the public sector along side with Australia post.

The companys total revenue for the year ending 2011-2012 was $25.4 billion. In 2011-12, Telstra generated $5.2 billion of free cash flow and paid $3.5 billion in dividends to shareholders. The company also has more than a million shareholders. (telstra.com.au) Technology and innovation and growth: Telstra handled 3.0billion local calls, 16 billion mobile calls minutes, and approximately 12 billion text messages. Telstra believes in investing in technology and innovativeness which has made the company spend millions of dollars and expand their network reaching to 99%of the Australian population and developing the Next G network. The company also has one of the most secure IP networks for their internet services in the world. Telstra has invested in the publishing sector by their wholly owned subsidiary which is Sensis which currently has a significance presence print, online and voice directories. Telstra also owns half of FOXTEL, Australia's no 1 pay T.V Company. Telstra global has a significant presence in the Asia pacific market and currently serves approximately serves 200 top companies out of the world 500 top companies. The company has access to 230 countries and territories and more than 1,300 Points-of-Presence throughout Australia, Asia Pacific, Europe and the U.S. the company has an international presence spanning 15 countries, including China. (telstra.com.au) Sector analysis: The Billion Dollar Market: The Australian telecommunication industry has been a significant player in contributing to the economic growth of Australia. The three major players in this industry are Telstra, Optus and Vodafone. While Telstra still dominates the market with just under a 60% market-share. Followed by Optus which has an approximately 20-22% market share. Vodafones network expansion and the merger with Hutchison is also rapidly growing. Broadband market: The broadband market has grown more than any of the previous years. In the last two years the increasing number of broadband customer was because of the drop in the dial up sector. As the new technology provides faster and cheaper internet connections it is widely attracting new users and is also noticing customer switching from dial up connections to broadband. Telstra expanded its is customer base by signing up more than 275,000 customer and crossed the 1 million customer base which was a growth of 73% when compared to previous years while
7

Optus not far behind of Telstra has a customer base of approximately 800,000 customers. (Biggermann & Kennedy, 2010) Mobile market: The fast growing mobile market which is now worth more than $17.5 billion is constantly growing at approximately 8-9%. This continues because of the latest additions of devices like iPads, iPhones, Android phones and various other tablets. Due to the expansion of broadband and the high tech mobile devices the growth in the fixed line market is become stagnant and was only around 2.7% in 2010 and is expected to reduce in future. (Biggermann & Kennedy, 2010) Market Highlights: The multi-billion dollar telecom industry in Australia has been achieving a constantly rapid growth. Some of the key highlights of the industry are given below: More than 10 million people regularly use mobile broadband to access internet. In the year 2011 there were around 450 service providers ranging from dial-up through to digital subscriber line, fiber and wireless solutions. Some internet service providers only service small numbers of fewer than 100 users Total mobile services revenue earned by the major mobile operators in the 2010/11 financial years continues to grow, but at a slower rate than the growth seen in the last years of the previous decade. With the rapid change in technology and more people using smart phones this industry is expected to double by 2020 to around an $80 billion mark. Mobile services now represent considerably more than 50% of overall industry revenues in Australia. ( Budde & McNamara, 2011)

Ratio Analysis A further more detailed analysis has been done by calculating the various ratios. A comparison can be made between Telstra and its major competitor which is Optus. Below are the different ratios which have been calculated and represent return on equity, earning per share, return on assets, dividend yield, payout ratio, interest coverage ratio and valuation of shares.

Return On Equity

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Table 1: Return On Equity 2012 29.66% 17.0% 2011 26.76% 15.49% 2010 30.58% 16.59%

Telstra Optus

Telstra is enjoying a very good financial position because their return on equity is more than 25% over the last three years. The revenue has been increased slightly year after year but the maximum EPS was 31.3 cents in 2010. The good news for the investors is that, Telstra did not issue new shares during these periods and had paid 25% less interest expense in 2012 as compared to the last year which means the company is paying off their debts through generating enough profit. In regards to the Optus there present situation is also getting better just like Telstra compared than 2011, although there revenue is also continuously increasing over the three years especially in 2012and the return on equity was 17% in 2012 but they had paid out interest expense almost 15% extra since 2010 which is not a good sign for investor, which reflects that the company has borrowed more money from the market. Optus did not issue new shares to increase the equity over these years.

Earning Per Share (EPS)

The EPS calculation gives an indication of the amount of earnings available to the each share. It is a summary of total company profits on per share basis. It is found by using

Table 2: Earning Per Share 2012 27.4 19.07 2011 26.1 17.11 2010 31.3 17.94

Telstra (cents) Optus(cents)

Earning per share for Telstra in 2012 has dropped slightly up to 27.4 cents, where it was 31.3 cents in 2010 but the company is paying constant dividend of 28.0 cents to the shareholders but the question rise here that the EPS is less than the company payout dividends would not this reflect to the present share value of the company? In regards to Optus, their EPS is continuously growing and went up to 19.07 cents in 2012. The point to notice here is that, the company their paid out dividend was 12.25 cents. Therefore, the Optus have volatility in the dividends figures.

Return on assets

10

Table 3: Return on assets 2012 10.48% 10.54% 2011 10.91% 10.26% 2010 11.81% 10.88%

Telstra Optus

Telstra has noticed a decrease year over year in return on assets, landing at 10.48% in 2012.On one hand side the long-term debt for Telstra has been decreased by less than 5%. On the other hand side the short-term debt has been increased almost 100%. The investors might have a concern about it but Telstra is spending a lot of money on ASD technology to improve their services. As compared to the industry average its a pretty good ratio. Although this ratio dropped from 2011and 2010that was 10.91% and 11.81% respectively. However, the Optus has return on assets slightly increase in 2012 as compared to last year but their long-term debt has increased almost thrice from the last year. The reason behind it that they had short term debt of $2070.30 million now it is only $100.3 million. The changing of short-term debt to long-term debt can lead them to decrease their interest expense.

Dividend Yield Dividend yield is used to calculate the earnings on investment (shares) considering only the returns in the form of total dividends declared by the company during the year

Table 4: Dividend Yield 2012 7.6% 5.1% 2011 9.7% 8.7% 2010 8.6% 4.5%

Telstra Optus

The Dividend Yield figures for the Telstra looks very attractive from the investors point of view because the company has higher yield and the investors are getting over 7.5% for each dollar invested in their equity over the three years of time and the highest they get it was 9.7% in
11

2011.But if the investors look up the last 3 years of Telstra EPS and dividends, this scenario makes them worry that the figures of the EPS is lower than the figures of the dividends. However, the Optus has a different approach towards their paying out their dividends and have a very higher volatility in these figures. The Optus is a new company as compare to Telstra and the strategy they are using indicates, they just want to make sure that the company will keep growing and the shareholder will also gets some benefits out of it.

Payout Ratio

The amount of earnings paid out in dividends to shareholders. Investors can use the payout ratio to determine what companies are doing with their earnings.

Table 5: Payout Ratio 2012 88.9% 64.2% 2011 107.3% 109.9% 2010 89.5% 59.0%

Telstra Optus

Payout ratio looks very good for the Telstra as compared to the Optus. A Telstra payout figure over the 3 years indicates that they have a kind of policies to pay out almost 100% dividend. So far the investors/shareholders point of view it looks fabulous but the lower the ratio, the more secure the dividend because smaller dividends are easier to pay out than larger dividends. Moreover, this could affect their share value as well because it indicates that the company does not have enough plans to keep the company growing. Although in 2012 Telstra payout ratio is decrease the reason behind it that the company is heavy spending money on ASD technology to improve their services. However, the Optus has a very low payout ratio as compare to Telstra, which indicates that a company is primarily focused on retaining its earnings rather than paying out dividends mostly for their growth purpose.

12

Interest Coverage Ratio

A ratio used to determine how easily a company could pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period

Table 6: Interest Coverage Ratio 2012 6.556 13.324 2011 5.014 14.161 2010 6.750 15.527

Telstra Optus

The Interest Coverage Ratio for Telstra indicates that the company can pay over 5 times interest during the following years. In 2012, the Telstra had paid almost 25% less interest expense as compared to the last year whereas, Optus can paid interest more than 12 times during the following these three years period. The 2012 the figure was the lowest and had continuously declined since 2010. The basic reason behind this was that Optus long-term debt has grown up for almost double as compared to the last year.

P/E Ratio

13

Table 7.P/E Ratio 2012 13.46 12.55 2011 11.07 13.44 2010 10.38 13.99

Telstra Optus

The P/E ratio figures for Telstra looks bit of worry for investors because they are getting higher over the last three years of time. The increase of Telstra P/E ratio indicates that shareholders are paying extra money for generating every dollar of earnings. Therefore, its quite clear that the company does not have sufficient strategy to keep the stock cheaper. For Optus P/E ratio figures are decreasing constantly. So heading towards the lower P/E ratio indicates that the Optus have better policies and better potential as compared to Telstra.

Evaluation of Share Price for Intrinsic Value use constant growth model

K=Rf + (Beta x (Rm-Rf)) K=2.62+(0.5*(10-2.62)} K= 6.31%

D1 = D0(1 + g)

g is annual dividend growth rate.

D1=0.28(1+0.0326) D1= 0.289

Whereas g = ROE x rr (Retention Rate) g= 29.66*0.11=> 3.26% And rr = 1 Dividend Payout Ratio

14

rr =1-88.9%=> 0.11 Value of Share = V = D1/K-g V=$0.289/0.0631-0.0326 V=$9.47 At present the share price for the Telstra is $3.94 Share Price = EPS x P/E ratio Share Price =$0.29*12.5 => $3.625 After finding out the intrinsic value for the Telstra shares it is quite clear that the present value of the shares is overprice. Moreover, after having a very close overview it is not certain whether the company will achieve their projected goals. Therefore, according to the present conditions the investors should not invest their money or buy the shares of Telstra. Global Financial Crises: Background: The Global financial Crises (GFC) like all other previous crises had not developed overnight. We are aware that the deregulation that took place in the 1980s was the roots of the GFC. The main objective was to encourage competitiveness and innovation in the financial system reducing the government intervention all over the world (Bloxham & Kent, 2009). The competition and reduced intervention led to easy access to credit facilities, different credit products, less margins and easy lending. The overall situation made it extremely difficult for regulators to measure the asset situation and creditworthiness of the banking institutions mainly (Pomfret, 2009a). The Bubble Burst: After the excessive lending all though the late nineties and in the early years in the 21st century the bubble finally burst out in 2007-2008 when the large mortgage lenders began to fail and were being taken over by Bank of America in an attempt to control and sustain the situation. Governments were bailing out banks that had invested large amount of money in the banks that had failed and lost credit worthiness. The situation worsened when the fourth largest investment bank in the US filed for bankruptcy which was followed by many other institutions which defaulted on their obligations. (Rotheli, 2010: 120).

15

Growth, Inflation & Interest rates: GFC immensely affected the growth rate and inflation. Countries which were constantly reporting stable growth and inflation were affected. The nominal GDP in countries like UK, Japan, USA and Australia drastically increased. This was one of the reasons for the property prices to hit the sky as there was an enormous investment involved in this sector. In order to control inflation the central banks kept the interest rates low and ignored the role of interest rates as the price of capital, thus stimulating the asset bubble (Pomfret, 2009b). Low interest rates encouraged investors to seek high yield securities creating a market for new investment products developed by various investment banks such as Collateralized Debt Obligations (CDO)and Credit Default Swaps (CDS). (Debelle, 2008). The Australian effect: Real Estate: From the 1990s until 2008, Australia witnessed a constant overall economic growth in which The countrys real estate market witnessed a boom. The total level of household debt increased from $A190 billion in the early nineties to $A1.1 trillion in 2008. The average household wealth and average household indebtedness increased significantly (ABS, 2009). The average debt which was around 66% of household income in the late mid-nineties increased drastically to 150% of household income. (Williams, 2009). The vast increase in household debt was because of two main reasons firstly because of the deregulation in the banking industry and secondly because of the real estate market was expanding and the house prices increased by approximately 10% between 2000-2008 opening investment opportunities for high income households to invest in investment properties to earn fixed rental income. (ABS cited in Williams, 2009).

Regulatory Control: In-spite of the deregulation in the banking industry all the financial institutions and banking industry were constantly monitored by the Australian Prudential Regulation Authority (APRA) which maintained a very conservative position on capital adequacy credit assessments and strict regulations for non-conforming loans. (Bloxham & Kent, 2009). These regulations reduced the risk associated with less credit worthy client issues as they could not be easily transferred to other institutions which led financial institutions to be extremely cautious while making any lending decisions. The lack of control was the only issue which gave shape to the sub-prime mortgage crises in the US.
16

Currency and Unemployment: The most dramatic effect of GFC was evident on Australian Dollar. It declined from $0.98 US in July 2008 to $0.60 in October 2008 (Pomfret, 2009a: 256). Household consumption reduced and uncertainty forced people to save, hence saving rates rose to 8.5% from 1.2% just within 6 months, March 2008 to December 2008. Unemployment in 2008 was 4.1% whereas in 2009 it was recorded at 5.8% which was a major concern for the Australian economy. It eventually declined to 5.3% later in 2010. (ABS, 2010). Manufacturing, construction and retail sectors witnessed heavy lay-offs whereas sectors like health and social assistance remained as a growing source of employment. Losses of full-time jobs in some sectors were partly offset by increases in part-time employment (ABS, 2009).

The Australian Strategies: Australian economy was less affected when we compare it with other developed economies of the same or similar size. Strict regulations and cautious management decisions had definitely played a significant role. Policy responses by the Australian authorities can be grouped into a few categories:

Reserve Bank of Australia Interest rate reductions came into place for various reasons to offset the crises induced slowdown in the economy. RBA and the government planned to unfreeze and restore liquidity to financial markets. The RBA also expanded the range of acceptable securities as collateral for repurchase agreements to include securities from the private sector like the residential mortgage backed securities (RMBS). (Kearns, 2009)

ASX : Australian Securities Exchange The ASX responded by introducing regulations to prevent activities in the secondary market and institutions that could affect the economic situation and further cause instability.
17

The ASX also announced a ban on short selling in the market which took effect from September 2008. The ban was applied to all stocks until November 2009 and to the most important sector which was the financial sector until May 2009.

Strict regulation on margin lending was also suggested. (Davis & Brown, 2008)

BANKS: Risk Management Major banks were involved in sustaining the economic situation by improving their risk management system to satisfy and meet the Basel II prudential regulation framework.

Government Response: Federal Government declared a guarantee scheme for borrowings by both State and Territory Governments to ensure their access to debt capital markets for funding infrastructure. On October 12, 2008 a government backed Blanket Guarantee was announced to support international wholesale market funding of Australian Banks (for debt and deposits less than $1 million) from 2008 till 2011. Another approach adopted by many other countries but was of Governments providing debt or equity funding to distressed financial institutions, popularly known as Bail Outs, especially for highly leveraged financial institutions. This approach was not adopted in Australia to save the public and placing more pressure on the financial institutions itself to reduce their own risk.(Davis &Brown,2008)

Economic level: The strong real economic growth of China and increasing trade volume safeguarded Australian economy against this crisis initially, but also caused inflationary pressures. While current account deficitshook International investors confidence in Australia.

18

But fact is that most of international debt was private debt rather than public and Government budget was always in surplus during these years.

Slowdown of Chinese economy and simultaneous drop of resources boom put pressure on exchange rate after July 2008, which ultimately helped to moderate the downturn in economic activity. (Davis & Brown, 2008)

Similarity between Australian Strategies and Keynes Theory: Global financial crises witnessed by the entire world led to major economic disasters in many countries, leading large multinational corporations filing bankruptcy, Australias major economic decisions and strategies which were similar to the Keynesians theory saved countless jobs, businesses and major economic disasters. The strategies that Australia implemented was firstly to increase public spending, secondly improve savings and increase investments and finally stepping back and letting the private sector recover on its own. Some of the main policies which Australia followed were: 2008: Economic Security Strategy which provided $10.4 billion in stimulus payments to pensioners, carers and families as well as the unemployed to continue the rotation of money supply in the market.(Swan,2011) 2009: Second stimulus package of $42 billion announced and starts getting implemented for nation-wide restructure and investments for economic growth. $14.7 billion for schools $6.6 billion for 20,000 new homes $3.9 billion to insulate 2.7 million homes $890 million for road repairs and infrastructure $2.7 billion in small business tax breaks $12.7 billion for cash bonuses: $950 for every Australian taxpayer who earned less than $80,000, to be paid out in March and April 2009

Source: (Canstar, 2009), http://www.canstar.com.au/global-financial-crisis/ 2011: private sector shows signs of recovery, unemployment reduced, the government reduces public spending and lets all the sectors gradually recover aiming to put back the budgets in surpluses for future. Just similar to the Keynesians theory which was applied immediately just after the crises, it was

19

applied after the recovery as well by reducing the public spending and getting back on track aiming for surplus budgets. ( Swan, 2011) Global Economic Outlook: THE FUTURE Global Outlook for Growth of Gross Domestic Product, 2012-2025 (January 2012)

*EU-15 refers to states that joined the European Union before 2004. **Other advanced economies include Canada, Switzerland, Norway, Israel, Iceland, Cyprus, Korea, Australia, Taiwan Province of China, Hong Kong, Singapore, New Zealand and Malta. ***CIS is Commonwealth of Independent States which includes all former republics of the Soviet Union, excluding the Baltic states. Source: The Conference Board Global Economic Outlook, January 2012. Source: http://www.conference-board.org/data/globaloutlook.cfm

20

Conclusion:

In-spite of the competition and new strategies implemented by Optus and Vodafone, Telstra has been a market leader in the telecom sector keeping the market share still over the 60% mark. If Telstra keeps developing new strategies to bring in the latest technology and being the market leader in innovativeness it can retain the no 1 position in years to come. When we talk about the GFC, there were various reasons for the GFC and we also know that it was not developed overnight. We can only say that if the right policies are implemented at the right time and at the right place a country or a company cannot eliminate the crises but at least can minimize its risk exposure it faces due to the crises. Australia played a role of being a role model for the world by implementing some of the best strategies and not getting affected as the other countries. But one can always argue that not all the strategies applied in an economy will be the best to overcome every crisis in the years to come.

21

References: ABS (Australian Bureau of Statistics) (2009) Australian Social Trends 4102.0. accessed on 18th October 2012 from www.abs.gov.au ABS (Australian Bureau of Statistics) (2010) Labour Force, Australia 6202.0 accessed on 18th October 2012 from www.abs.gov.au Ark.B.V (2012), The Conference Board CEO Challenge 2012. RISKY BUSINESS FOCUS ON INNOVATION AND TALENT IN A VOLATILE WORLD. Accessed on 17 th October 2012 from http://www.mbc.com.ph/engine/wp-content/uploads/2012/02/2012-03-13-Bart-Van-ArkRisky-Business-Focus-on-Innovation-and-Talent-in-a-Volatile-World-Part-1.pdf Bingermann., M & Kenedy.S. (2010) accessed on 16th October 2012 from http://www.theaustralian.com.au/archive/business-old/wireless-internet-eats-intofixedbroadband-market/story-e6frg9hx-1225829348902 Bloxham, P. and Kent, C. (2009) Household Indebtedness The Australian Economic Review, Vol 42(3): 327-39. Budde. P & McNamara, S. (2011) accessed on 17th October 2012 from http://www.budde.com.au/Research/Australia-Telecoms-Industry-Statistics-and-Forecasts.html
Company Profile: http://www.telstra.com.au/abouttelstra/company-overview/fast-facts/

Davis.K & Brown.C. (2008). Australias Experience in the Global Financial Crisis The Sub-Prime Crisis Down Under, Journal of Applied finance. Debelle, G (2008) A comparison of the US and Australian housing markets Bulletin June 2008 RBA Available at: www.rba.gov.au/publications Accessed 16th october 2012 Kearns, J. (2009) The Australian Money Market in a Global Crisis http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_jun09/Pdf/bu-0609-2.pdf No Name, (2009). Global Financial Crisis - What caused it and how the world responded http://www.canstar.com.au/global-financial-crisis/

Pomfret, R. (2009a) The post-2007 financial and policy challenges facing Australia Economic Papers Vol. 28(3): 255-263.

22

Pomfret, R. (2009b) The financial sector and the future of capitalism, Economic Systems Vol. 34: 22-37. Rotheli, T. (2010) Causes of the financial crisis: Risk misperception, policy mistakes, and banks bounded rationality The Journal of Socio-Economic 39(2010): 119-126.
Williams, R. (2009) Household debt: Is it a liability? The Australian Economic Review Vol. 42(3): 321326. Swan.W(2011). Keynes the key to maintaining Australia's economic health accessed on 18 th October

http://www.theage.com.au/business/keynes-the-key-to-maintaining-australiaseconomic-health-20110408-1d7sz.html#ixzz29wYyafcp
2012 from

23