Serious Business.., page-95

On bundling, everyone does that, Vocus bundles fetchtv and mobiles as well, anyone can do that, not anyone can do their own back-haul, thats what separates the tier1 telcos from the rest.

I enjoy a bit of passion in arguments, but i think your getting a bit carried away. You claim i arent seeing things right, and suggest i go out and start my own telco and send myself broke so i can prove a point about bundling that i didnt even make...

Bundling content delivery is good for content distributors like fetchtv/netflix, and its good for the telco industry because it adds more demand for bandwidth, not just for the reseller, but also backhaul, so most of the NBN only resellers, bundling content are pushing data through the teir1 providers. Vocus will get a piece of that.

I think the freebies your talking about might be the 6 months speed upgrade from 12/1 to 25/5 on dodo, the speical finished last month. I think its just regular marketing tactics. Reduced margins for 6 months from $25 down to $15 is still profitable, and it might prompt some to switch to the faster speed, which is where the NBN is pushing everyone to focus on now.

I arent saying Vocus is better off in an absolute sense because our margins are flat and TPG have been reduced to our level, what im saying is we are more competitive now because our costs are getting closer.

We dont all have to agree, if i lose on Vocus i will wear it.

And btw, im not a TPG hater, i think they will grow as well, but they have more limits on the growth because they are already pretty big, which is why they are pushing into mobile for growth, because they really dont have many other options for growth. I think in the long term their mobile strategy might be good for them, but they are going to take some pain for a couple of years, and it is a risky move.