TPG to scrap off its budget plans from the Australian Market

TPG is set to pull out all its potential 12 Mbps, cheapest plan from the Australian market. The NBN player though has forecasted a slight hint on the key consequences it would have on the price sensitive users, it has managed to remain silent.

The first plan soon to be abolished from the market is assumed to be TPG’s non-unlimited 12 Mbps plan. The plan is currently available in the market for $29.99 with 10 GB data, $49.99 month plan with 100 GB data and $59.99 month plan with unlimited 12 Mbps data plan.

The spokesperson of TPG, on behalf of the submission made to the Australian Competition and Consumer Commission (ACCC), remarked;

“TPG may remove all NBN products in the market that have a monthly recurring charge of less than $59.99. For example, quota-based plans.”

The report denoted on removing altogether $59.99 plans, however the act shall depend on the market movements and ACCC inquiry.

Recently, NBN co has launched a modified ELB which offers a slighter reduction in the price; however, the new launch stands no near to the existing 12 Mbps unlimited plans.

Adding more spark on ELB, TPG spokesperson added;

“Until NBN’s new ELB was recently introduced, a $59.99 retail price point allowed TPG to only just break-even at an EBITDA level. Under the new ELB there is a reduction in NBN wholesale cost such that at 1.25Mbps per customer, the wholesale cost is now $37.”

As of now, the ACCC is exploring new level entry price regarding the price sensitive users.