How Management Plans To Lead TPG-Vodafone Post-Merge
Following TPG Telecom shareholders’ approval of the $15-billion merger with Vodafone Hutchinson Australia, the two telecoms companies are scheduled to commence operations as a single firm from 29th June.
The merged company will have a tough few years ahead – collectively Vodafone and TPG have $4.8 billion of debt, and the planned 5G network roll-out is expect to cost some $3 billion. In addition, competition in Australia’s mobile market has ramped up since the COVID-19 crisis, with the country’s main players slashing prices.
Moving ahead, TPG-Vodafone says mobile and fixed-line service bundles will be critical to success, as convergent services are increasingly popular. The development of 5G networks will also play a prominent role, as owning the fibre is key to profitability in this space. In addition, there are plans to significantly cut costs.
Leading the merged TPG-Vodafone will be Iñaki Berroeta as CEO, the former CEO of Vodafone. David Teoh, the Executive Chairman and Co-Founder of TPG, will become Non-Executive Director.
Despite the title change, Berroeta has told the Australian Financial Review that he does not expect Teoh to take a hands-off approach.
“I think he’ll be calling me every day. He loves the business. I mean, it’s his life,” Berroeta said.
“He is a very passionate man about what he’s done. He’s extremely involved in the technology. He likes technology. He likes to talk to the engineers. He likes to challenge them. He likes to come up with ideas. And I think that he would like to do the same in the future.”