Does TPG have to buy in round one for 5G? Is there a second...

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Nightmarez3k

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27/02/18

17:15

Post #: 31387966
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Originally posted by hcraboc ↑

“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).”

Telstra was not permitted to participate due to a 2x 20MHz competition limit, so you cant blame Telstra for the high price paid for the spectrum.

The spectrum for 1800MHz was for regional areas, in many cases Telstra was blocked from participating in those auctions too.

The price for spectrum is not all over the chart, its actually directly related to the cost of building the network in that local area. What you don’t spend on spectrum needs to be spent on towers and visa versa.
Local conditions, topography, population density etc. affect the price of the spectrum.

Buying spectrum as you need it, is not really an option as it probably won’t be available.

Bandwidth = speed... When the other carriers walk away with 30-50 MHz their advertised 5G speeds will be 3-5 times faster if TPG chose to only buy 10MHz.

TPG didn’t skimp on price for 4G 700MHz.
If they want to be a real threat to the existing carriers they won’t skimp at the 3.6GHz auction either.

My personal view is that they need to go hard.
But that will affect cashflow and probably borrowings.
I am sure they can stump up the cash if they need to.
But it means increasingly TPGs future and share price is based on the success or failure of its mobile ventures

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Does TPG have to buy in round one for 5G? Is there a second round?

Also TPG spectrum for 4G is staggered over 2-3 years? Would next deal be similar?

TPM Price at posting: $6.25 Sentiment: Buy Disclosure: Held
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Does TPG have to buy in round one for 5G? Is there a second...

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