Calling the shots with 5G move: Lens on TPM and TLS

Summary

• 5G is expected to bring many benefits to the table with unprecedented speed, low latency and enlarged applications.
• TPG Singapore is set to relish the piece of 5G pie with the allotted mmWave spectrum.
• Telstra has plunged in the market with its latest portable hotspot as a future-proof route for 5G connectivity.

5G is often termed as disruptive but addressing the technology with this word is an understatement. The world is going to witness an extreme difference in the next two to three years in 5G technology. The change will be unveiled in terms of what 5G offers, how it is deployed, and what will be its outlook in the coming years.

This new generation of wireless network technology, 5G, will emerge as a facilitator across a swarm of sectors, industries, and applications, and will toss-up new use cases as well.

GOOD READ: Is 2020 the year for 5G amid COVID-19?

The technology can be deployed in multiple ways by various operators, but the bottom line is that 5G is all about a much bigger slice of available spectrum and extensive scale in capacity.

Further, 5G has the potential to revamp not only the broadband service with unprecedented speed, but it will also facilitate amplified applications and use cases ranging from connected devices in the IoT, to driverless vehicles and smart cities to name a few.

DID YOU READ: 5G Makes Fast Inroads, Are We Ready Yet?

Let us now dive in to have a look at what is happening in the 5G space in relation with the two telecom operators TPM and TLS.

TPG Telecom Limited (ASX:TPM)

TPG Telecom Limited offers a broad range of telecommunication services to individuals, SMEs, and wholesale customers. The services include ADSL2+, Fiber Optic broadband services, IP TV, and other business networking solutions.

TPG Singapore to relish the taste of 5G with the allocated mmWave spectrum

TPG Singapore met with a snag in April while missing out on holding 3.6 GHz mobile band spectrum for 5G. The Telco has accelerated the momentum for rolling out 5G services by picking up mmWave spectrum.

On 25 June 2020, Singapore IMDA allocated 800 megahertz (MHz) of mmWave spectrum to TPG Telecom Pte Ltd (TPG Singapore).

This allotment of 800MHz throughout 26-28 gigahertz bands would facilitate TPG Telecom to uncover its 5G services in reinforcing of new consumer and business use cases. Moreover, the allocation terms do not entail the Company to incur any material upfront charges for the spectrum.

DID YOU READ: Jubilant TPG & Vodafone Are Ready to Take on Telstra & Optus As Australia's Third Telecom Giant

TPG’s merger with VHA gets a green signal from TPG’s shareholders

On 24 June 2020, Vodafone Hutchison Australia Limited (VHA) and TPG’s merger crossed the final hurdle and noted overwhelming favourable votes from TPG’s shareholders.

This merger will witness a big split: TPG Singapore will walk away alone and will demerge from TPG and list itself as a separate company on ASX under the ticker TUA on 30 June 2020.

Furthermore, the orders will be lodged with the ASIC (Australian Securities and Investments Commission) on 29 June 2020 after approval from the Supreme Court, thereafter the Scheme would come into effect and the merged companies would be listed on 30 June 2020 under the ticker TPG on ASX and ordinary trading would commence from 14 July 2020.

DO WATCH: TPG Shareholders to receive a special dividend of 49 to 62 cents/share | ASX Market Update

Read between the lines

With the combined forces of TPG and VHA, a third bigger vertically integrated player will emerge in the market. How? TPG’s is missing out on a legitimate mobile arm, while Vodafone on proper fixed-line footprint. Thus, this fuelled merger will consummate the aspirations of both the Telcos.

On 25 June 2020, TPM shares were trading at AU$8.800, declining by 2.439%. The Company has a market cap of AU$8.37 billion with ~927.81 million shares outstanding.

Telstra Corporation Limited (ASX:TLS)

Telstra Corporation Limited offers telecom and information services to customers around the globe. The Company provides over 18 million retail mobile services and more than 3.5 million retail fixed bundles and data services.

TLS seems to be prime position for a shift to 5G technology. The Company is investing more into 5G than its competitors, buoyed by the fact that Telstra has brought forward capex of AU$500 million from the second half of FY’21 into calendar year 2020 to expedite 5G roll-out and amplify network capacity.

The higher-spectrum trials are being conducted in association with Ericsson

Telstra has conjugated with Ericsson to facilitate its mobile network end-to-end with 5G standalone products; indicating the competence of Telstra to run 5G network independently of the current 4G network and handle new 5G Standalone traffic.

5G standalone capable devices are not yet commercially available, but Telstra expects that to occur in late 2020.

Telstra has plunged with its latest portable hotspot as a future-proof route for connectivity.

Telstra 5G Wi-Fi Pro launched with mmWave support on 26 May 2020.

Telstra 5G Wi-Fi Pro is the Company’s first 5G hotspot with millimetre-wave (mmWave) connectivity, priced at AU$599 or AU$24.95 per month over 24-months.

This beast features a 2.4-inch touch screen, 4500mAh battery, 5G, 4G and Wi-Fi 6 connectivity. Additionally, it can support up to 30 Wi-Fi enabled devices at a time.

Spectrum for mmWave will not be auctioned until 2021. However, Telstra has given its customers early access to this new technology.

The Company believes that anyone who owns this portable hotspot will be able to benefit from mmWave technology on their three live testing sites.

Interestingly, the customers who will order this device online will fetch themselves a treat, earning up to 100,000 bonus points.

DO READ: Telstra Introduces 5G investment, Job Reductions are on Hold

Currently, the operator has 5G switched on in 47 cities and large regional towns with over 8 million people living, working, and passing through Telstra’s 5G footprint across Australia.

On 25 June 2020, TLS shares were trading at AU$8.800, declining by 1.582%. The Company has a market cap of AU$37.58 billion with ~11.89 billion shares outstanding.