Teoh seems to have realised very early on that telcos are the new 'utility'. In much the same way as we all whinge about our water and electricity suppliers, as long as we have a cheap price we don't care too much.
Everything TPG does is run lean, except the acquisition of infrastructure.
One only needs to look at the almost insulting deal that SOL have offered HHL as a takeover bid ($1 per share!), then juxtapose that with the fact that Robert Millner dropped nearly $1m on TPG stock at nearly $9 a share to realise that TPG is the closest thing to a bargain on the ASX at the moment.
TPG is already ahead of the NBN - clearly FTTB was cheaper to implement and even cheaper again to operate, so the only thing the govt could think of is to tax it. This is proof enough that it's a great idea.
Towers are the final piece in the puzzle. Vodafone would be smart to do a deal with TPG, as their coverage is now (according to some surveys) as good as TLS, but they need a customer base to build from.
Get the popcorn out I say as it will be very exciting from hereon in.
TPM Price at posting:
$7.33 Sentiment: Buy Disclosure: Held
