TPG questions why NBN is overbuilding business infrastructure

(Image: NBN)

TPG has added its voice to the chorus of commercial telcos querying NBN’s targeting of business customers.

“We do have concerns about NBN’s increasing involvement in the business market in areas where there is already substantial existing fibre from numerous competitive carriers,” TPG founder and executive chairman David Teoh said at the company’s AGM on Wednesday.

“We don’t understand why taxpayer funds would be used to overbuild existing infrastructure in these areas.”

TPG competitor Vocus struck out at NBN’s tactics in October.

“NBN should be a good thing for the Australian enterprise market — but only if it operates within its original remit as a wholesale-only, transparent, and non-discriminatory operator,” Vocus CEO Kevin Russell said at the time.

“Right now, NBN’s behaviour in the market is in danger of undermining and penalising those who have invested and, want to invest, to support infrastructure competition.”

For its part, NBN said it has always intended to target businesses as it allows the company to pull fibre deeper into the network.

“We’ve never hidden this and indeed announced last year our intent to generate a billion dollars in revenue from business,” Rue told Senate Estimates in October.

“When NBN connects post offices all over the country to fibre, that fibre can also be used to connect other premises over time.

“This drives savings and cost reductions over many years.”

On Wednesday, Teoh reiterated guidance from September when the company handed down its full year results that FY20 would be the year it would see the most significant headwinds from the rollout of the National Broadband Network (NBN).

“We expect to be well positioned for growth once the headwinds subside following the end of the NBN rollout, with our lean cost structure enabling us to continue to be an effective competitor in residential broadband, our quality of service and fibre infrastructure supporting ongoing Corporate Division growth, and an exciting greenfield opportunity in Singapore,” he said.

TPG CFO Stephen Banfield reiterated the telco group would take a hit of AU$85 million this financial year.

“In this peak year of NBN headwinds, organic growth [for] FY20 is not expected to be sufficient to offset the headwinds and consequently [business as usual] EBITDA is expected to be in the range of AU$735 to AU$750 million dollars,” he said.

Responding to NBN’s recent wholesale pricing changes, Banfield said the CVC bundle inclusion has not kept pace with customer data usage.

“While the wholesale pricing changes … have been a step in the right direction, our NBN economics remain worse than they were in the first half of FY19 when the NBN Focus on 50 and CVC boost promotion was in place,” he said.

“By the end of FY20, the group expects to have only around 13% of its residential broadband customer base remaining on DSL.”

Speaking on the court case brought by the company and Vodafone Hutchison against the ACCC over blocking the merger of the two telcos, TPG general counsel Tony Moffatt said he was “very comfortable” with the way the case was presented.

“We had the finest competition lawyers working for us on the matter, and we believe that we presented a very clear picture about our position when it comes to any future mobile strategy,” he said.

“There was once a technical solution that would have worked for us. But since the government’s ban on the use of Huawei for 5G, there is no viable replacement technical solution suitable for TPG.

“If the merger is not approved, we will be looking at the other options available to monetise our spectrum and mobile assets.”

Related Coverage

ACCC loses legal battle to TPG over misleading consumer allegations

Federal Court dismisses case with ACCC to pay costs.

TPG kept looking into 5G even though Teoh killed the project

Despite saying it was ending its mobile network at the start of the year, TPG’s head of operations and products has revealed the telco continued to talk to mobile equipment vendors.

iiNet lost a copper line, an NBN customer, and must now undergo a systems audit

ACMA threatening to drag TPG-owned telco to court if it does not comply with direction.

Ericsson asked about ‘favourite children’ in Vodafone-TPG blocked merger case

Friday’s chapter of the legal battle between the ACCC and Vodafone/TPG at the Federal Court kicked off with Ericsson being asked whether it played favourites with Telstra over other carriers.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin28,842 1.65 % 1.46 % 5.07 %
Ethereum1,773.0 2.30 % 4.32 % 12.39 %
Tether0.9999 0.05 % 0.15 % 0.12 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB302.32 1.61 % 3.29 % 1.73 %
XRP0.3889 1.77 % 1.25 % 7.76 %
Binance USD0.9959 0.87 % 0.63 % 0.76 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana42.35 2.15 % 6.18 % 19.07 %
Polkadot9.560 2.19 % 1.98 % 5.05 %

Bitcoin (BTC) $ 29,133.00
Ethereum (ETH) $ 1,790.15
Tether (USDT) $ 1.00
USD Coin (USDC) $ 1.00
BNB (BNB) $ 304.68
XRP (XRP) $ 0.391497
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.470169
Solana (SOL) $ 42.58
Polkadot (DOT) $ 9.67