Analysts Slam TPG Mobile’s $9.99 ‘Unlimited’ Data Plan
Set to further intensify market competition, TPG has announced it’s debuting a $9.99/per month ‘unlimited’ mobile data plan later this year – news which some analysts claim is unlikely to profit any money.
As previously reported, TPG is investing $2 billion in its forthcoming mobile network, securing a place as the fourth telco in the local market.
The company’s mobile coverage will initially be limited to a range of inner-city metropolitan regions near Sydney, Brisbane, Melbourne, Canberra and Adelaide.
However, TPG expects to grow coverage to ~80% of the Australia population with time.
Full terms and conditions, and pre-registration is available on TPG’s website here.
TPG’s super competitive data plan is free for the first six months, before reverting to $9.99 per month – notably cheaper than its rivals.
The deal includes 1GB of data a day at 4G LTE speeds, which is then capped at 1Mbps for the rest of the day.
As a matter of contrast, Telstra’s ‘unlimited’ mobile data plan costs $69/month with 40GB of uncapped data.
As per The Australian, UBS analysts, Tom Beadle and Eric Choi, affirm the $9.99 ARPU is “unlikely to return a positive net present value” for TPG’s mobile roll-out.
The analysts state TPG’s ‘unlimited’ offer represents about 30GB of uncapped data per month.
Speaking of its new mobile promotion, TPG Executive Chairman David Teoh claims the offer is “the first of its kind in Australia”, reflecting a “new era of competition” in the local mobile market.