NBN Rollout to Create Margin Headwinds For TPG

  • Dec 04, 2019 AEDT
  • Team Kalkine

TPG Telecom Limited (ASX: TPM) had a tough financial year due to two major regulatory decision. First was the ban of the use of Huawei equipment in 5G networks, which was an important feature of the company’s innovative mobile network design that it had been rolling out in Australia.

Second was the decision by the ACCC to oppose the company’s planned merger with Vodafone Hutchison Australia.

The company expects that, in the future, the NBN rollout plan is expected to continue to create substantial margin pressure for the company (over the next couple of years). Although, the company is well positioned for growth once the headwinds subside after the end of the NBN rollout.

 

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