Ann: FY14 Results Investor Presentation, page-37

Without wishing to sound pompous, it is a big no brainer question. It depends on the costs of capital of each company. I presume this is your main point.

I am glad you set out the exact purpose of the CS Investing link.


Perhaps i can just reiterate my simple proposition. I have an existing customer with locked in cashflow. Why would the valuation of net present value of this stream of cashflow be affected by how much it costs for me to connect and service the next customer? This is in essence what VOC is doing. Every new customer for fibre comms is signed up before they lay a cent for capex.

I am not trying to be difficult. I am just failing to grasp the logic of why in VOC case, their growth capex spend is to be deducted in deriving free cashflow. I would be happy to get an answer so that i can see whether there is any error in reasoning.