Disruptive mobile business models – Is TPG going to be ‘Free’?

TPG leverages fixed broadband dominance and small cell technology to challenge incumbent mobile operators.

Vinay Chhoda · Venture Insights1 November 2017Period: November 20178 min read

Last updated 10 June 2026

A$18bn→

Total Australian Mobile Market Value (2017)

80%↑

TPG Planned Population Coverage Target

Locked

Companies covered:TPGVodafone Hutchison AustraliaTelstraOptusFree Mobile2degreesFreedomPopOrangeSFRBouygues Telecom

Abstract

This report analyses the potential for TPG to disrupt the A$18bn Australian mobile market following its A$1.26bn spectrum acquisition. By examining international precedents like Free Mobile in France and 2degrees in New Zealand, the study identifies five key success factors for new entrants. TPG's strategy involves deploying a high-density small cell network to cover 80% of the population, aiming to pressure incumbent margins through aggressive pricing and higher data limits as mobile services become increasingly commoditised.

Key Takeaways

TPG is investing A$1.26bn in spectrum and A$600mn in infrastructure to become Australia's fourth MNO by mid-2018.
The Australian mobile market is valued at A$18bn, with TPG targeting 80% population coverage via a small cell network.
International disruptors like Free Mobile and 2degrees have successfully captured 18-23% market share by undercutting incumbents by up to 80%.

stakeholder implications · PDF download

Frequently Asked Questions

TPG is targeting the A$18bn Australian mobile market with a network designed to reach 80% of the population. By deploying a high-density small cell network, the company aims to undercut incumbent margins through aggressive pricing and significantly higher data limits.

The initial launch is scheduled for mid-2018, focusing on the major metropolitan hubs of Sydney, Melbourne, and Canberra. This follows a substantial A$1.26bn investment in spectrum to support its infrastructure ambitions.

TPG already controls 15% of the low-ARPU MVNO market, providing a ready-made base for migration. Furthermore, the company possesses four out of five key success factors identified in international disruptions, such as 2degrees in New Zealand, which successfully launched with rates of 44c per minute against incumbent rates of 89c.

Disruptive mobile business models – Is TPG going to be ‘Free’?

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