How a JV with Vodafone could work, page-33

Yes I have been very critical of TPM's foray into mobiles.
The reason...
Their network is rubbish.. Not enough spectrum, virtually no macro cells. Coverage was going to be awful.
$2B into a big hole.... The armchair experts saying how great this mobile network is going to be, when it really wasn't.
So we have a clever company building a very stupid network.... Why????

Then there is Vodafone, spending hundreds of millions on a tiny slice of 700MHz spectrum. A slice too small to be commercially viable...
Another clever company buying a spectrum asset which is unusable..... Why????

Individually both companies have made decisions which on the surface look outrageously stupid...
The rampers and fanbase have cheered these decisions, demonstrating a severe lack of knowledge..

I started this thread because if Vodafone and TPG didn't merge, they would have both wasted $3B between them.

They are not that dumb...

This merger of mobile networks, spectrum sharing, or whatever else it is they are negotiating was obviously going to happen, based on both companies actions.

If you look at my Sentiment on TPM it has moved from Sell to Buy and then Hold.

I am now changing it to sell because I feel the initial enthusiasm on the announcement has passed and there is a high risk that the share price will drift back. This is an investment website, for sharing points of view, Its not a fan club.

I do however feel that after the drift back, a merger or sharing of assets is very likely, and a spurt in the share price will happen again.


Before people discredit my comments maybe they should look a little deeper, and if they had followed my sentiment where would they be now.