0104 GMT - Australian telcos are likely to be disappointed by regulatory changes that had initially implied bigger cost savings, Jefferies analysts say. A revised proposal by the Australian Communications and Media Authority has increased the expected cost of renewing expiring spectrum licenses by about A$1.7 billion, reducing potential cost savings for Telstra, TPG and Optus. Jefferies now estimates savings of A$450 million for Telstra and A$200 million for TPG, versus its previously expected A$1.0 billion-A$1.6 billion and about A$400 million, respectively. Jefferies still prefers TLS to TPG as it has a strong balance sheet and can maintain capital management flexibility despite the lower potential cost savings from spectrum renewals. "By contrast, TPG is generating just enough cash earnings to sustain the current distribution per share of A$0.18, leaving no buffer for further capital management." (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

December 16, 2025 20:04 ET (01:04 GMT)

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