History repeating itself, we did have 4, Hutchison merged with Vodafone to create VHA because the market couldnt support four.
VHA has a subscriber base of 5.7m, ARPU of $46/month and are still losing money, planning on spending $2B in 2017 calendar year. They had almost 800m D&A for their last FY
TPG have an ARPU of $22/m (by my calc), and they think they can break even with 500,000 customers.They plan on spending $600m over 2 or 3 years, so about a half to a third of what VHA writes down in D&A per year.
Teoh is no doubt a smart man, but even if he has an alternative plan to use it to bypass the NBN, i think he has still bitten off more than he can chew. I expect mobile will be draining cash from TPG for a decade.
VOC Price at posting:
$2.42 Sentiment: Buy Disclosure: Held
