VTL - Vital Telecommunications (formerly Team Talk)

[silverblizzard888]

But it could have heaps more taking Rods money .....that $1.80 he offered now worth $2.50 at least

Yeah you're absolutely right about that, the money and share offer would have been worth quite a bit more than current price, but I'm more just point out the fact that takeover targets have a tendency to do well even when takeover doesn't eventuate. It might well happen that if Spark takeover TTK that it will perform better.

[SilverBack]

Sorry guys but if you want to discuss KMD then please move to that thread.
Agreed that SPK are playing hardball but I sold down 50% of my holding all the same to protect against SPK ditching the offer if the Voda deal is passed (which I think is likely because I suspect the major shareholders will support it, many of whom have been long term supporters of TTK). SPK changing their terms for the bid to remain if more than 50% holding is achieved indicates that they are not running away but will seek to establish control of TTK regardless of management's fight-back. In that case expect SPK to attempt full control further down the line but in the meantime to bring TTK into its fold. (Some interesting board room action if SPK get between 50 and 90% control. I would expect a new Chairman but the CEO may well continue. All my own thoughts, nothing more than this).
In any case, a bird in the hand is worth two in the bush and so on that reckoning, after selling down, I am now owed nothing. I bought in on the big drop earlier with divs still being paid in order to catch the high yield and as a recovery stock and then topped up around 40c. Well, on that basis I have a good recovery and with divs the return makes this a quite satisfactory play. I doubt the high yields will return too soon, even if the SPK bid fails because TTK faces substantial capital costs around relocating its Wgtn fibre going forward along with investment in radio digital services.
I previously avoided TTK because I was aware of the low broadband margins and savage competition with broadband suppliers and considered the company over-valued in the face of that competition. At the same time I recognised its niche market with radio. The rural scene was clearly going to change with RBI and now RBI2 is on the way. My thinking has been borne out in the case of Farmside while the urban broadband market continues to be savage. I bought in because I felt that, as usual, the market over-reacted to the impact of the broadband issues and lost sight of other strengths.
Andrew coming in, is to me, a positive because he comes from a corporate telecom background at Alcatel and so understands SPK and other competitors. I think the Voda deal is a reflection of this.
Where to from here? I suspect that SPK will do what they have said and that the threat over the Voda deal is real. Every man to his opinion but this is mine and time will tell. Of course, TTK have a put on Farmside to Voda and so SPK can cause the put if they get control of TTK. What I do not know are the terms of the put and what strategic value SPK have placed on Farmside.

[blackcap]

Did anyone go to the meeting today and what were your views? I see the resolution was passed resoundingly. So more cash for TTK and balance sheet improved. Hope the SP gets back to 46 to buy some but I doubt that.

[tim23]

You really wonder why SPK bothered with the takeover?

[BlackPeter]

You really wonder why SPK bothered with the takeover?

Not really ... a couple of weeks ago submitted both Vodafone as well as Spark plans to the government to improve rural broadband and mobile reception (heard that on RNZ). I assume that both companies planned the TTK - Farmside bits as integral part of their offer. This was probably the reason for Sparks takeover offer (getting Farmside), and certainly the reason for Vodafone to snap Farmside away from them.

The rest of the company will have quite limited appeal to any big Telco. What do you expect Spark to do? Start a Mobile Radio division?

[horus1]

The key is that wireless is bypassing fibre and that puts value in backhaul fibre, not fibre to the home, which teamtalk have, It also destroys the govt arguments for the fibre rollout and makes much of it unnecessary. It is called technological change. I have been taken off copper and put on wireless by spark. it was simple and works well and is cheaper than fibre. The same is going to happen in electricity, read Collins speech after she returned from USA.

[Zaphod]

The key is that wireless is bypassing fibre and that puts value in backhaul fibre, not fibre to the home, which teamtalk have, It also destroys the govt arguments for the fibre rollout and makes much of it unnecessary.

IMO wireless doesn't "destroy the govt arguments for the fibre rollout". Wireless is to fibre as to what the microwave is to the oven. Each has their own set of advantages & disadvantages and hence use cases, which in respect of the RBI anoints wireless as a clear winner, principally due to implementation cost. The UFB rollout of FTTH provides urban NZ with a much higher speed, lower latency and far more cost-effectively expandable bandwidth than that which is available via the wireless spectrum, even taking into account the as yet undefined 5G standards.

[bung5]

I have been taken off copper and put on wireless by spark. it was simple and works well and is cheaper than fibre. The same is going to happen in electricity, read Collins speech after she returned from USA.

Spark have pulled the wool over your eyes. Unless you can't get VDSL , wireless performance won't match copper. Average monthly data usage for NZ is 120gb per month ,double that on fibre. With that growth continuing wireless (4g) won't be able to keep up.

[horus1]

Well I am far happier and its cheaper. My wireless performance is better than copper and you have to rewire for VDSL. Read the spark latest report and the no going on wireless instead of fibre.It does destroy the economics .I think that is why spark is gaining share price and chorus going down.

[bung5]

I agree short term is more revenue for spark and less for chorus. I think your opinion my change in a year or so when the they oversell the 4g network and you find it going a bit slower. Maybe not , you may just use internet for emails and light browsing in which case its fine.

Sorry getting bit off topic on TTK now. Need a combined telco thread for interesting dynamics between all these listed players