TPG and Vodafone Merge Creates New Telco Giant Worth $15 Billion


TPG and Vodafone merges

Photo: The New Daily

Recently announced is the merging of TPG and Vodafone. Individually, these companies reside in the top-tier lists in their respective industries.

It goes without saying that their joint venture will precipitate a much more extensive business across fixed broadband and mobile, giving Telstra and Optus stronger competition.

The merger, publicised last August 30, will see TPG shareholders owning 49.9 percent of the combined entity. Vodafone Hutchison Australia (VHA) shareholders, on the other hand, will own the remaining 50.1 percent as the finalised part of the deal. The merger is expected to reach completion next year.

TPG

TPG is one of Australia’s trusted fixed broadband provider with excellent communication services that span decades. The company caters to a wide range of consumers — from residential users, to small, medium, and large corporate enterprises, to government and wholesale customers. As of present, TPG services more than 1.9 million customers with their internet services. Overall, the telco boasts the country’s second-largest fixed line residential consumer base.

The company, which also owns iiNet, prominently offers ADSL2+, NBN, Fibre Optic, and Ethernet broadband access, telephony services, Internet Protocol Television (IPTV), and a wide array of business networking solutions. More recently, TPG has also introduced SIM-only mobile plans to further broaden their offerings. With the company’s official collaboration with Vodafone, their efforts to delve into the mobile niche through the launch of their mobile plans look to be just the beginning.

Vodafone

As Australia’s third-largest mobile provider, Vodafone nears the six-million consumer base mark. This figure is of comparable size to Telstra and Optus,  the country’s two leading mobile providers. Along with the telco’s continuing innovation for better networks and coverage — to strengthen their mobile offerings — Vodafone’s subscriber reach has also notably expanded.

Moreover, Vodafone substantially invests in the improvement of their 4G mobile network, which now can deliver coverage to up to 22 million customers in Australia. The rollout of Wi-Fi calling to cover areas with no current access is also a solid manifestation of the telco’s efforts to augment their network’s coverage. The company has also since explored a variety of other products and services to offer — notably NBN services. With this in mind, Vodafone’s loyal customers can now officially anticipate that the telco will go beyond mobile.

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What Happens Next?

There have been no announcements as to what happens to the branding of either TPG or VHA. One thing is for sure, though — no changes will be instantaneous. Furthermore, TPG’s CEO and chairman David Teoh will become the chairman of the newly consolidated group.

“The merger with VHA represents an exciting step-change in TPG’s evolution, and will benefit both our shareholders and Australian consumers alike,” Teoh stated. He continued: “With this merger we will be a more formidable competitor against Telstra and Optus.”

Meanwhile, VHA’s current CEO Inaki Berroeta, who also promises greater things to come to the Australian consumers, will serve as the managing director and CEO of the new group. “The big winners of this will be Australia’s consumers, with the new company able to deliver even greater competition and value,” said Berroeta.

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