Should I sign up for TPG S$10 for 50GB data?

TPG's Offer

After 1.5 years of offering free mobile service, TPG has decided to charge for its mobile service and throw in a whopping 50GB of mobile data with 300 call out minutes and 10 SMS.

The financial industry is skeptical about the offer. If all 400,000 subscribers signed up, it will only contribute $48m yearly revenue if everyone sign up.  The setup cost of 4G infrastructure is estimated at $160m with a running yearly cost of $1.6m.  TPG is likely to charge more to capture more market shares and boost its revenue.

Is $10 for 50GB worth it?

The picture below depicts what are the choices that current consumers have.

The X-axis is the GB of Mobile Data (The bigger the better)

The Y-axis is the Cost of the Plan (The smaller the better)

The size of the circle depicts the call out minutes (The bigger the better)

So, plans located at the bottom right are the BEST plans.  And there is only 1.

It is the TPG plan which offers 50GB at $10.

At the same cost, the closest competitor is MyRepublic with 6GB of mobile data.

At the same GB, the closest competitor is Gomo's offer at $30.

TPG sets a new standard for value of market in Singapore for postpaid services.

What are the shortcomings of signing up?

1. 4G Phones: TPG provides ONLY 4G network so customer needs a 4G phone to use the service. In fact, the 4G phone must be LTE FDD supporting either 900MHz or 2300MHz.
2. Call out: For calling out, only certain phones with VOLTE+ are supported.  Else, customers must download TPG app for call out.  Well, you can use whatsapp to leave voice message or voice out since you have 50GB.
   
3. Support: There is only one office in Orchard and the alternative avenue of support is by email.
   
4. Network coverage: The biggest drawback is network limitation as TPG is a new network provider and they must lay out 4G network from scratch.  Underground carpark and MRT tunnels are blind spots with no network.  Sometimes, those staying or working at high floors (>30 floors) may not receive any network coverage.  These are not the target segments TPG is going after.

The BEST plan in the market and not for long...

From the chart above, this is the BEST plan in Singapore postpaid sim-only market. None of the competitors (including MVNOs) can match this offer.  So, it is safe to guess that TPG will likely increase the costs of the plan after 31 May 2020 to boost its revenue for profits. This is the same as the free 30 minutes plan offered by Circles.Life to boost its customer base.  Upon reaching its target, Circles.Life terminated the free plan.  We can expect the same execution from TPG.

So what are you waiting for? Go and grab the plan now from TPG online or visit their office:

Address: Orchard Central (181 Orchard Road, #04-28 Orchard Central, Singapore 238896)

Operating Hours: 11.00 am to 9.00 pm

And before I forgot, there is a bonus 1GB of roaming data in Indonesia, India and Philippines.  Sign up early before the offer is gone.  I seriously doubt there will be another Telco coming into Singapore in the next 5 years.