Why would they spend $1B upgrading their network? Because if...

Why would they spend $1B upgrading their network?
Because if they didn't Vodafone was potentially worth next to nothing.
The $1B spent possibly means Vodafone is worth around $4-5B in Australia to a would be buyer.
Before the $1B was spent they were losing customers everywhere and they would be worth less than $1B if the situation continued.
So by spending $1B it has made Vodafone worth an extra $3-4B
Pretty good return.
Problem is the $7B debt..

The fibre deal is over 15 Years... or $60M per year.... Its pocket change and its essential to make their 4G network work well.
Vodafone for too long has been running off radio Backhaul to many of its sites..
Its very low cost but has speed and reliability issues especially with 4G and VoLTE
So the need fibre for VoLTE to work well.

As the press announcement said TPG won the tender to provide fibre services.
TPG is a low cost carrier good on them... If someone else came in cheaper I bet Vodafone would have used them.
Using Vodafone as an MVNO instead of Optus is also consistent with TPG's mode of operation.... which is price price and price, and Vodafone right now is the cheapest wholesale carrier.



Magpie I am not against HTA just read what I have written understand why the share price is where it is, understand the risks, make money where you can and exit when the time is right.

If there is good news, this could go up considerably.
If it is sold or taken over shareholders could get very little due to the massive debt.

Please understand that VHA is the entity that will be sold and has the massive debt.
Potentially leaving HTA with the 50% share of the proceeds.

I just cannot see VHA selling for $7.7B which is the amount needed just to repay the debt.
VHA will need to sell for $10.1B just so share holders could receive an 8.9c cash return

If it sells for anything less you will end up with zip.