True. The churn off the other customers could provide uplift in customer numbers for TPG. However I was more reiterating on the margin story. TPG would never be able to get the margins it once got from renting Telstra's copper wires at $15 per customer per year.
The real difference between TPG and the other 3 carriers is that they have an extensive network of towers where they can deploy mobile data for people on the go. TPG can't do that as a full bundle for their customers. Currently they are piggybacking off Voda as MVNO. We all know what Vodafone's coverage is like.
I still think it's a wrong move from Teoh to ditch Optus and jump into bed with Voda. However if his real intention is to do a reverse take over of Voda, then it could be the right move. One step forward, two steps backwards.
TPM Price at posting:
$7.18 Sentiment: None Disclosure: Not Held
