New article in the AFR. TPG talking tough. I like it. The NBN was essentially forced into fibre because of the threat of 5G. An NBN write down is also coming imo, it's the perfect time to push it out with the other big spending measures fro the Coalition.
TPG Telecom says NBN Co's surprise plan to splash $4.5 billion on upgrading its network will not deter its own plans to pick off customers with 5G fixed wireless, unless the government-owned wholesaler reduces its prices.Under the $4.5 billion plan, announced on Wednesday, NBN Co will upgrade just under half of existing fibre to the node connections to the far superior fibre to the premises, as long as customers agree to pay for the more expensive plans.
TPG Telecom group executive legal and external affairs Trent Czinner said the company was "fundamentally supportive of copper being replaced by fibre to deliver services to meet the needs of Australians in the 21st century."However, in order to truly unleash the full potential of the NBN for customers, a long-term sustainable pricing model without CVC is required," he said.TPG, which merged with Vodafone Hutchison Australia in June, is the second-biggest NBN retailer after Telstra."Customers are increasingly preferring the flexibility of having both mobile and fixed services at home and we offer them this choice. As well as being the second-largest retailer of NBN services, we have an extensive fibre network, providing high-performance, great-value alternatives in select areas," Mr Czinner said."We expect fixed wireless services, particularly 5G, to be attractive where providers can offer a service to compete with the NBN at a lower cost. That is likely to remain the case unless a significant change in NBN pricing is made."
TPG Price at posting:
$7.55 Sentiment: Buy Disclosure: Held
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