It’s been a few years since I followed TPG closely. I got out because of the capex required to build mobile networks and the price war between Telstra meant margins were being crunched right before our eyes.
I had Telstra for $40/mo which is a far superior network to any other providers, especially TPG/Vodafone. Now I’m on Boost prepaid which gives me enough data to last 12 months for $20/mo.
There’s no discounting Teoh pulling a rabbit out of a hat, but without doing any detailed analysis of margins I am generally pessimistic on profitability and customer retention. Telstra is now affordable, even for the most frugal/stingy person. Anyone who leaves Telstra for a cheaper provider has regret and switches back. Once you leave and go back to Telstra, you’ll never leave.
TPM Price at posting:
$8.84 Sentiment: None Disclosure: Not Held
