TPG's fourth-telco bet went commercial in Singapore: S$10 a month, 50GB, no contract

TPG Telecom is an Australian telecom building and running Singapore's fourth mobile network

That a fourth Singapore mobile network could win subscribers with a S$10 no-contract SIM-only plan even with thinner coverage than Singtel, StarHub and M1

A$68.9M of capex on the Singapore mobile network build, plus A$1.8M of start-up losses for the six months to 31 January 2020

TPG entered Singapore as the city's fourth wireless operator and launched free trial services in December 2018, more than a year before charging anyone.

The first commercial plan landed on 31 March 2020. Analysts were skeptical: Omdia's Nicole McCormick did not expect the price to be offered indefinitely; TPG had asked for more time on road-tunnel coverage, with 99% MRT-tunnel coverage not required until 1 January 2022; DBS's Sachin Mittal reckoned TPG needed at least S$120 million a year to break even and called profitability unlikely. Incumbent shares rose on launch day — Singtel 5%, StarHub 1.5%.

Singapore was TPG's new-market bet: a fourth operator trying to live on price alone in a saturated mobile market.

The S$10 price matched the psychological threshold and was simple to read, but sat below DBS's estimate of breakeven revenue.

Without a legacy 3G network to fall back on, coverage gaps could erase the saving for many users.

Incumbents Singtel, StarHub and M1 could respond with more data while keeping a premium for coverage and quality, as Phillip Securities expected.

A price-disruptor entry works only while the price can climb toward breakeven — S$10 wins headlines, but S$120 million a year is what keeps a network alive.

As of 31 March 2020 the trial service was being phased out, a similarly attractive pre-paid plan was in the pipeline, and fibre operator MyRepublic had answered with temporary plans including 6GB at S$10. TPG's MRT-tunnel coverage deadline ran to 1 January 2022.