Elisa is sparking some scattered thoughts here:
- Competition is truly cutthroat. I’d say there’s some degree of a race to the bottom going on in the mobile sector. Through my work, I’ve seen the prices at which Telia will be selling subscriptions to the public sector in the future, and I have no idea how anyone can make any margin at those prices.
- Is Veli-Matti Mattila’s departure starting to show? Mattila built a significant lead over Telia during his tenure, and now perhaps we are returning to parity. Well, okay, Telia also bungled quite a few things by overextending into side projects, but still.
- Could Starlink still threaten operators in the long run? It’s a bit of a far-fetched idea if it does, but Elisa’s biggest asset and moat is the backbone network buried in domestic soil. If this turns out not to be such a big deal in the future, then heaven help Elisa investors.
- Cybersecurity is a good spearhead, but I doubt it can become something companies would pay for in the same proportion as network connections. In my opinion, this is partly because cybersecurity providers are happy to sell technology and services, but the responsibility always ultimately remains with the customer.
Well, I only have this as a small position in one portfolio, so I’m just watching it calmly, but I wouldn’t be adding more as I think there are too many grey clouds.