Thanks for the copy paste from the ACCC's website. I can only...

Thanks for the copy paste from the ACCC's website. I can only suggest you take a course on statistics. TPG ex-iiNet has been adding broadband customers at a rate of 8-11% yoy since 2014. At July 2017 that figure was +8.1% yoy to be precise. Again excluding iiNet.

The dialogue we should be having is that for NBN connections at 12Mbps with 1Mbps CVC (you won't need 2) the monthly AVC + CVC cost is $38.25. With an ASP of $59.99, the gross profit margin is 36.2%

For 25Mbps plans with 1Mbps of CVC the cost figure rises to $41.25 or $47.50 for 2Mbps of CVC. The gross profit margin is 41.1% or 32.1%.

The pertinent point being the higher the plan, the lower the profit margin.

NBN Co reports to receive $43 on average. I estimate TPG's cost on average to be $42.7.
This is because they are winning at the budget end of town. 12Mbps customers are good customers and here TPG have no 1 market share. Similar for 25Mbps customers as long as an avg 1.5Mbps of CVC across the board keeps them happy.

The point is the margin impact isn't so severe as people think. Consumer broadband gross margin in FY17 was 51%. This may fall to 37% for the reasons I explained earlier but if TPG continue to add budget broadband customers aided by bundling EBITDA will be STEADY. All they need is 2.3 million broadband customers by 2020 up from 1.936 million today. They know this too.

Once NBN Co is sold to public markets in less than a handful of years, it's back to every man for himself mode as it will no longer be a government owned monopoly. TPG's assets and cost structure will be hard to compete with.