Should be good results, page-94

Some would argue the market has overreacted. Others will say that Teoh is famous for his conservatism and his capacity to under promise and over deliver.
The optimism, however, should be tempered by the fact Teoh is being forced to crank up the company's capital expenditure. That was another surprise for analysts already worried about their modelling of TPG's profits.

He issued capital expenditure guidance of between $370 million to $420 million when the market had expected about $320million.
Ian Martin, senior telecoms analyst at independent research house New Street Research, says the problem facing TPG is that its expenditure on fixed-line access charges will increase from about $500 million to $1.2 billion over the next three years as broadband users migrate to the NBN Co via retail service providers.
He says over the next three years the access charges paid by TPG will rise from about $15 a month to about $43. He estimates that by 2020 the charges will hit about $52. Included in that access charge is the controversial CVC charg


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