Free Amazon & Google Wi Fi, eSIM & How TPG Are Set To Dominate
5G is all hype – eSIM is the future and Google and Amazon are set to give away free unlimited connectivity with consumers buying connected home add on services, as well as additional entertainment and sport streaming services.
Peter Adderton is one of Australia’s most successful telecommunication entrepreneurs and is the man who in 2000 created Boost Mobile. Today, its one of the most successful telco brands in the world, with millions of users in the USA and Australia.
Boost Mobile also account for over 65 per cent of all Telstra’s pre-paid business.
Adderton believes that David Teoh, the CEO TPG, never planned to launch a low-cost mobile carrier in Australia and that he has brilliantly played both “the ACCC and his competitors” with the merging of TPG and Vodafone into becoming the third player in the Australia telecommunications marketplace.
“Teoh will end up owning the combined TPG Vodafone Company. He will be a maverick who is set to disrupt both Optus and Telstra, he will carve up the market with value deals”.
When asked what the business will be called, Adderton claimed that TPG is seen as a value brand that is known for delivering low cost connectivity.
“I suspect that the Vodafone brand will disappear,” he added.
When asked about 5G roll outs in Australia, Adderton said all carriers are doing right now is building “hype” surrounding 5G.
“There is no killer app such as video that drove 4G, coverage is poor and brands such as Qualcomm and Samsung are spruiking 5G so that they can sell overpriced handsets.
“The carriers have been sucked in by network equipment engineers wanting to sell connectivity gear. They had a trolly with gear that showed the speeds that 5G could deliver and the carriers fell for, now they are trying to sell it to sceptical consumers who have already recognised that the handsets are expensive and the service not worth the extra investment”.
He said that the future is about cloud based networking and unlimited free streaming services that the likes of Google, Amazon and Apple will deliver.
As TPG and Vodafone were taking on the Australian Competition & Consumer Commission in Australia, another battle was going on over the $38 billion Sprint and T-Mobile merger in the USA.
A US regulators’ lawsuit to stop the merger was one of the last major obstacles to the deal, which T-Mobile argued would improve its ability to compete against rivals Verizon and AT&T.
The US Department of Justice and the Federal Communications Commission both approved the merger last year.
The objections to the deal came to an abrupt end when New York Attorney General Letitia James dropped a court challenge to the merger on Sunday.
According to Adderton, information revealed to the sitting judge in the case centred on revelations that both Google and Amazon were set to deliver free connectivity in the US market.
Adderton believes that this type of connectivity coupled with new satellite services will happen in Australia a move that spells a bleak future for carriers.
He also believes that eSIM are the future with visitors to Australia able to simply scan a code when they arrive, and they will be immediately connected to a network at no additional cost to what they normal pay.
“Expensive roaming is going to be dead.”