Ann: M2 delivers 60% increase in underlying net profit to $93.3M, page-19

Horsetrader1, I think you misunderstood my post a little. I was being sarcastic about the organic growth achieved.

nih123, when I had dodo, the connection was rock solid and I never had a problem.

They are just a reseller as you say. They have no enduring competitive advantage. Telstra, Optus and TPG have the competitive advantage of owning part or all of the infrastructure which gives them lower costs. Telstra and Singtel are probably a bit too big and diversified to compare to M2, but if you compare the margins of M2 to TPM, it's night and day because of the competitive advantage TPG have that M2 don't.

I would even argue ever since TPG bought Pipe Networks, this has forced the hand of M2 to buy up smaller companies and consolidate in the hope of surviving on the slimmest possible margins. However, the idea of economies of scale is just an illusion for a company like this. The more customers they get, the more their costs increase (in proportion as they have no fixed costs) and it's akin to a mouse running on a wheel - you can run for a while, but it's tiring and eventually you're just going to give up and hop off.