Bullish View on TPG, page-16

Just to follow on this topic.

In France, Free offers 2 packages:

Package 1:
- 2 hour of calls
- Unlimited SMS and MMS
- Unlimited FreeWifi hotspots in France
- 50MB data in France and 50MB data in Europe

Price for Package 1:
- EUR 0.00 if you are a FreeBox subscriber
- EUR 2.00 if you are not a FreeBox subscriber

FreeBox is an all-in-one device, i.e. modem + router + multimedia box + 250GB hard drive

Package 2:
- Unlimited calls
- Unlimited SMS and MMS
- Unlimited FreeWifi hotspots in France
- Unlimited 4G data (After 100GB, speed will be throttled)
- From abroad (Europe and some other countries):
- unlimited calls, SMS, MMS to Europe and some other countries
- 25GB data

Price for Package 2:
- EUR 15.99 if you are a FreeBox subscriber
- EUR 19.99 if you are not a FreeBox subscriber

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Now EUR15.99 is about AUD23.79. If we assume that TPG offers something similar, i.e. all you can eat product at around AUD30.00, I'm pretty sure plenty of people will be willing to move even though the initial network coverage is not that extensive.

All of these MVNOs such as Amaysim, Kogan will definitely be affected, let alone the 3 incumbents, TLS, Optus, and Vodafone!


Because TPG will operate in the bottom end of the market, my guess is TPG won't bother signing wholesale deals with MVNOs. They will just keep all of the customers' margins to themselves.

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Free also sells sim cards using a vending machine located in strategic locations.

https://techcrunch.com/2014/04/10/free-will-sell-sim-cards-using-vending-machines-in-france/

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Happy investing!