Analyst: TPG to exercise more cost control
- 15 March, 2010 16:42
- Comments 2
TPG’s acquisition of Pipe Networks will give the company better control over the cost of buying international network capacity, according to an analyst.
Last week, TPG laid down an offer to purchase Pipe for $6.30 per share. The deal was approved by shareholders on March 12 for $373 million. It will go before the Queensland Supreme Court for approval on Wednesday.
Ovum research director, David Kennedy, said the acquisition might not make much of an impact on product offerings, but TPG could introduce new packages that include ‘unlimited’ downloads and similar value offers. However, he also claimed some ISPs will reduce or eliminate purchases from Pipe, since its takeover by a competitor.
“These ISPs will seek international capacity elsewhere, but nobody can quantify the scale of the movement yet,” Kennedy said.
Meanwhile, independent telco analyst, Kevin Morgan, saw value in the combination of TPG’s retail strength and Pipe’s wholesale offerings.
“Paradoxically, despite the hype about a wholesale-only NBN, and the push to get Telstra to divest its network, a vertically integrated model of wholesale/retail has enduring value and in my view, it’s not one that any owner would readily undo,” Morgan said.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
Steve
TPG are a disgrace in customer service. It took 4 months to get them to admit that they were unable to fix a problem that efffected my internet. it never worked from day one and it was like dealing with Monkey Island... Their call centre is in the Phillipines and trying to get someone to actually inderstand and own the problem is next to impossible, Australian Management did not want to know about the issue. I certainly hope that Pipe customers dont end up like TPG ones. I am sure when things work it would be an excellent service but when they dont, you are on your own... To make matters worse the Bank had to threaten TPG with fraud if they kept charging my creditcard for a service that never worked. They ended up cancelling my cards and reissued the cards as they had many complaints re this vendor. I would love to see how many Ombudsman reports TPG have on them... Beware all
Chris
TPG is a terrific company and provides fabulous value for my money.
The staff at their Filipino call-centre are helpful, polite and intelligent.
It might help when calling them to not behave like a raving drongo.
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