If you look in my previous posts I have forewarned this.
There are additional costs for TPM, buying spectrum is like paying for cover charge at a nightclub. The fact that he is doing a rights issue for this cover charge means that the road is a long one.
The cost to build/lease towers and provide the infrastructure for 80% of the population would be capital intensive, Teoh wouldn't be able to fund it with his balancesheet, it would be too expensive to take out a loan especially with all this scrutiny. His best bet would be to go back to his trusty shareholders.
TPM would be a long play, c.10years for them to come up and compete fully with Optus/TLS. By then his spectrum would have expired, and the story repeats itself.
I really admire the deliberate play by Optus to jack up the price of spectrum and making this a hard journey for Teoh.
Teoh should learn to work together with others in the industry rather be trying to be the lone raging bull in this industry.
TPM Price at posting:
$5.45 Sentiment: Sell Disclosure: Not Held
