From the presentation, p21 "A higher density of small cell sites...

From the presentation, p21 "A higher density of small cell sites will be used for the initial 4G LTE rollout and will also provide key infrastructure assets for the longer term 5G evolution."

I agree that they are building a 4G network, BUT, they are setting the network up to be 5G upgradable with minimal CAPEX. (from my understanding, the other 3 networks will not have this late build advantage).

Again, are they over leveraging? That is an opinion not a fact. with their FCF, reduced dividend, band debt facility and CAPEX spend forecast of approx $600m per annum, does not to me, sound like over leveraging or a stretched balance sheet to me.

We also need to remember that "TPG is currently spending hundreds of millions of dollars to build more fibre. So far, the costs are being recorded but the revenue is not, obscuring the benefit of new spending. Once built, fibre expansions will attract high margins and are backed by contracted revenue. This is money well spent." (Invest Smart quote.) This will also generate significant FCF that will continue to support the network rollout.

The NBN is killing margins for all Telco's, but for TPG to forecast only a 2.5% to 4% Ebitda drop for this year shows just how good the business is.

I would suspect that you are looking at TPM with a distinct negative bias. (maybe I am looking at it with a positive bias - but I am backing up my belief with data).

HT1