Latest TPG updates, page-151

@zadah

Where is the margin for tpm?
Nbn is killing tpm broadband margin so no growth. In fact shrinking margins.

As a new entrant with no existing margin to protect, any kind of revenue is better than nothing. You can think of the new mobile network that TPG is building as a new empty highway. It is in the interests of TPG to attract as many vehicles (mobile users) as possible to the new highway (mobile network).

Other toll roads owners such as Telstra, Optus and Vodafone will be affected as the number of users on their highways decrease. Not only that, they will also lose some margins on the remaining users.

The only product that TPG has announced so far is $9.99 per month for 1GB data per DAY. If they can attract 1,000,000 customers to this plan, then the annual revenue is $120m.

With time I'm sure TPG will release other products with higher pricing to attract different types of customers.

Not only that, soon TPG will be in the position to offer Fixed Wireless service to customers in selected locations. This aggressively priced product is designed to attract customers with lower budget who do not need the fastest internet connection at home. Think of those thousands of international students living in the suburbs surrounding university campuses in most Australian major cities.

By bypassing NBN, TPG will be able to restore some of their lost margins caused by the NBN.

A inferior mobile network and once people realise the network is crap and not much cheaper than the compition Singapore and Australia They will struggle to return to tpm.
Hence your eg: floptus, Vodafail

Let's agree to disagree. TPG will have newer mobile network equipments than the incumbents. Their network architecture is the current best and latest. As I said in my previous post, in terms of Small Cells deployment in metropolitan areas, TPG is currently ahead of Optus/Vodafone.

As data consumption keeps growing, it's becoming more and more crucial to have all of the mobile towers connected by fibre. Being the second largest fibre network operator in Australia will give TPG the advantage in the future.

Please also note that the kind of customers that TPG will attract is those who don't go to the country side that often.

So the wishful thinking of mobile waffer thin margins does not materialise.
Where is profit??
You can have all the fibre in the world but no margin.no profit= Crash bust or a cheap
takeover target

By offering prices at such a low level, what TPG is doing is stimulating new market demand that was previously suppressed due to high pricing charged by the incumbents. For example:

- Think of how many iPads will now be equipped with TPG sim card simply because it's now very affordable?

- Children/young people are generally more willing to embrace newer technology. I notice that a lot of them now already place phone calls through Whatsapp and not through the traditional telephone line. A family of 4 can now have 4 sim cards at a total cost of $40/month, less than the cost of one mobile service previously.

- Through broadband & mobile bundling, TPG will also be able to attract new broadband customers who are first attracted to TPG through its cheap mobile offering.

- TPG can also offer these cheap mobile plans to the employees (and their friends/relatives) of its corporate customers.

As for you assertion that TPG is a takeover target, I totally disagree. Teoh & Soul Pattinson are not going to give away their very successful 10 year-old partnership for a short term gain.

Theo will be $$$ fine shareholder get paid last if at all.
Optus and Vodafone have been where tpm is about to travel the inferior network zone.
both have returned in coverage strength. More avenues of$$ return hence look at the numbers. ++. All at tpm expense
Optus, Vodafone and Tls will force Tpm to the brink of collapse.
ACCC cannot donate or finance Tpm loss making venture. It just compition.

Unlike you, TPG's competitors such as Telstra & Optus took TPG's threat very seriously.

Allan Lew, Optus CEO, said that Optus needs to be much leaner than before to survive in the future.

Andy Penn, Telstra CEO, announced Telstra2022 strategy to ensure its future survival.

They are both insiders in the industry and they all know that taking TPG not seriously (like what you are doing) is simply too risky for their businesses.

ACCC doesn't donate to or finance TPG at all. If they did, they would have declared roaming and make TPG's life much easier. Again, your assertion is not correct.


Vodafone is hovering in the best position and will buy Tpm at fire sale prices or merge at Vodafones selected conditions.
Due to Tls, Optus will not be allowed to.
Both eyes open. Happy punting

Again, I disagree with you, in my opinion Vodafone is the most vulnerable. It's caught in no man's land. It doesn't have the premium branding of Telstra and it doesn't have the low cost base of TPG.

Vodafone also doesn't have its own fibre network. Luckily for Vodafone, the CEO had the foresight to sign a deal with TPG back in 2015 to prepare itself for 5G. Without that deal, its network will be much more inferior than currently. TPG got the better deal as Vodafone underwrote its fibre extension capex and TPG is still able to use any unused capacity for its own use.

I also want to remind you that since we are already in July, this is the third month that TPG has billed Vodafone for using the new fibre extension (It started on 1 May 2018).

If TPG & Vodafone ever merge, then I have to seriously look at selling my TPG investment as the deal will negate all of the cost advantages that I believe TPG will enjoy in the future.

Yes, happy punting to you. As for me, I'm not punting at all, I'm investing. Big difference.