In the old days, TLS used to pay a considerable amount of REM on...

In the old days, TLS used to pay a considerable amount of REM on the handsets sold with every connection. Then a fair few years back once they introduced new plans, tls needed to capitalise on it's profits so it moved away from providing margin (or very little) on handsets, and providing higher REM on connections. As the plans changed, so too did the REM structure. For eg. A new TLS customer would earn the most to encourage new sign ups. then as the structure changed again, REM as a BYO existing customer (same usage plan) and a new handset customer would earn the same and an existing upgrade customer would earn less. With BYO new plans earning the most.
Now it appears after all these years they are going back to a similar model that previously existed.
in short, I wouldn't be concerned about this new change to the tls side of the business.
IMO I can almost guarantee that Maxine, Andrew, Pete have already started communicating the new structures to employees and have devised ways to sustain or even increase their profits. VTG's store front leadership team are extremely smart and very capable when it comes to executing new strategies and are usually the innovators in helping to drive profits. For instance expect to see less apple sales and recommendations when visiting VTG owned stores as apple provides horrible margin, at best 5-7%, (it's even less on iphones). Expect an increase in more android sales, in particular the higher margin handsets.

my concerns however are as follows.
- no mention of NIMA profits
- look at the previous history with Next Byte and VTG expanding too quickly.
- Sprout Acc. can only be sold so much, while it's an important business to VTG it's hard to grow YoY on it's own in a competitive market place with cheaper alternatives.
- VTG has many businesses but the retail ICT which IMO is also the driving force behind sprout sales, consistently outperforms, hence the strong sprout sales, but what about the other businesses?
- VES has plenty of opportunity to tackle the managed services industry, and earn big $$ but no real progress or YoY growth appears to be happening
- I like SQD athletica (personal taste I might be the only one lol), but no margin updates or profits released to the market.
- the legacy rem changes of 12-13 million PA stings.........
- SP continues to be volatile and follow a similar trend for the past 3 years. (backtesting)

I sold out a while back on its latest run, made a little profit.

Honestly, I'm going to wait on the sidelines, I speculate the SP is in for some more pain short term, I hope for the sake of LT holders it's not, I don't want to see anyone lose their $$$$ or stress. But if it does go even further lower, and makes a bottom, I will buy back in.

This is all IMO. DYOR.

In short, if all you're worried about is the new REM changes I wouldn't be.