So here is the cause of the drop in TPG price: 1. NBN is...

So here is the cause of the drop in TPG price:

1. NBN is currently charging $15+ usage fee for their network (on top of the flat line rental fee).
2. TPG is currently offering "unlimited" plans, which means it costs them $637 to sell a 100 MBPS line full time to customer, and obviously no one is going to pay for $600/month TPG internet package.
3. Analyst estimate TPG will increase price slightly, but lose a lot more to NBN (vs Telstra's cheap copper rental line)


But this is why the fear is overblown:
1. TPG is more than capable of building their own mini NBN network (which they have already started since 2015, although it is limited legally to areas that NBN are not touching i.e. FTTB) that only costs $4 usage fee. So NBN must lower their price, or their network will be totally bypassed.

2. The squeeze are impacting all other small internet retailers, being a low cost provider, if NBN is not dropping their usage fee, all smaller competitor will be out of business, driving more users to TPG. It is definitely not in the interest of the ACCC to let this happen.