TPG Telecom is doubling down on cheaper digital-only mobile plans to grow its customer base and aims to boost profits and market share, but this shift also risks squeezing revenue from its more premium services. The telecoms group is leaning on a Netflix-style subscription brand and a new regional network-sharing arrangement to attract value-conscious users who prefer to manage their plans entirely through an app.
Right now, many mobile customers are moving away from traditional plans and towards simpler lower-cost options they can activate in minutes on their phones. This change has unfolded as budgets tighten and people become more comfortable buying services digitally instead of visiting stores or calling support lines. App-based plans that offer clear pricing and flexible data options are becoming the default choice for a growing slice of the market and they are reshaping how major carriers position their brands.
Within this shift, TPG is seeing its digital-first mobile offers expand quickly even as the older postpaid segment shrinks. The company reports that these digital plans have grown from around 14% of its total mobile sales in 2021 to about 18.3% last year, which shows steady momentum in just a couple of years. One of its key brands runs on a subscription model similar to streaming services and even though its average revenue per user sits at roughly $25.75, almost half the level of TPG’s more premium Vodafone-branded customers, revenue from this arm has climbed because users tend to upgrade to higher-data options over time.
Looking ahead, this tilt towards low-friction app-driven mobile plans looks set to keep reshaping the competitive landscape, especially as TPG combines digital growth with broader regional coverage through network sharing. The strategy seems to position the company as a challenger to long-time leaders that still rely heavily on older plan structures, but it may also pressure margins if too many customers trade down from higher-priced products. For now, digital-first subscriptions appear to be giving TPG a useful edge in winning new customers, even if the long-term balance between growth and profitability remains uncertain.
