Don't you think it is interesting that in Dec 17, TPG bought...

Don't you think it is interesting that in Dec 17, TPG bought 10Mhz of 1800Mhz spectrum for $970,000 or $0.188/Mhz/pop.  This is nowhere near the $2.75/Mhz/pop they were forced to pay for 700Mhz nationwide spectrum.  Prices are all over the chart and Telstra is partly responsible (throwing someone else's money i.e. shareholders' money around).


Regarding your favourite topic (3.6Ghz):
•  Your comment on Telstra paying $50m for Brisbane spectrum is not entirely accurate (again).  It's for 35mhz.  I don't have the exact population figure of 'Brisbane B' but this equates to somewhere between $0.85-1.30/Mhz/pop depending on the population figure you use.  If it were for the whole of Brisbane then the price would be only $0.78/Mhz/pop.

•  The license term is shrinking by the day as the expiry is fixed at 13 December 2030. This will lower the price.

•  The spectrum will take a few years to be re-farmed and so it is not unemcumbered. This will lower the price.

•  There was no reason for TPG to pick up 3.4Ghz spectrum when their 700Mhz spectrum only commences from April 2018.  It is not that they were absent from the party.  Why buy a license, when you cannot use it and have no customers?  5G standards have not been set, and 5G phones are not out yet.  If you buy a 10-year taxi license but can only use it for 5 years from 5 years out...the price will adjust downwards.  Time value of money also says the taxi license would be worth more if it could be used in the 1st half versus the 2nd half.   The ACMA may be keen to rush but the market dynamic remains the same.  Of course, Telstra may not give a s%@$ as they play with other people's money.

•  TPG have the same amount of 700Mhz spectrum as Optus i.e. 20Mhz.  I don't think anyone is expecting TPG to have the same market share as Optus in 4G/5G. TPG may only need to bid for 10Mhz out of 125Mhz on auction.  And TPG have MORE THAN ENOUGH funds to do so.

•  5G is able to facilitate contiguous bandwidth.  So as long as TPG stay calculated and pick up spectrum at different spots like they did in Tasmania, it will be sufficient.  In other words, the competitive dynamic in bidding for 3.6Ghz will not be the same as trying to keep an entrant out of a 700Mhz auction because of contiguous bandwidth.  Coming from Mr. Telstra this may seem inconceivable but it is the reality.

I am tired of rebutting your wild theories.  So I'm sorry fellow shareholders, if you shake from Mr Telstra so be it.  It's on you.  I did my best.


My question to you as a Telstra employee is why on earth spend billions on Belong and other strategies to 'compete' with the newcomer when Telstra could spend $500 million and buy an influential stake in TPG? David Teoh is getting older by the day and he has to divide his 35% stake among 4 sons.