$2.58 to $1.38 - what happened?, page-4

TPG margins should be maintained or improved even though they cut prices to continue to win market share.

The savings through pipe's infrastructure was passed on straight away to subscribers on the new unlimited broadband deals, as the main cost of broadband is the international capacity, which they now own.

The only winners going forward in the battle for customers will be telstra, Optus & TPG given they own alot of assets.

TPG is close to the best served in sector ,given they have low staffing costs with a large number of people working in Manilla. Their infrastructure in voice, IP network which soul owned plus add in Pipe's fibre network & PPC-1 gives them a sound footing.

Plus David Toeh is viewed as the smartest person in the telco sector and runs a very lean company in terms of operating costs. This can be seen with the high levels of free cash flow being generated year on year.