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.

Best Postpaid Plan in Singapore (Without Contract)

Best Postpaid Plan in Singapore (Without Contract)

The Era of No-Contract Mobile Postpaid Plan

The initial sunk cost (or investment) of setting up telecom infrastructure is high.  In the early days, to promote mass market of mobile phone, telecom operators adopted free phone for a 2-year contract.  In today's context, the strategy of giving free phone is no longer practiced.  Instead, telecom operators twisted to "subsidise" the phone for your 2-year contract.  If you are silly enough to sign up for a free phone, then you are one of those good customers who are "stupid" to pay more for an inferior phone (or $0 phone) at a premium price.

You may challenge: What inferior phone?  My answer is simply you are paying extra (minimum $10/month) for 24 months.  Telecom company has collected $240 over 2 years for the lowest plan.  They have successfully lock you in for 24 months else you will be penalised for breaking the contract.  As long as manufacturers are willing to sell the mobile phone for less than $200, they can sell the phone at cost but their objective to tie you down for 2 years is achieved.  To make higher margins, some phones cost only $50 so they can make high margin if you select an outdated smartphone.  Well, with such high margin, they can afford to throw you some free gifts to sweeten the deal.

If you have a high-end or reasonably solid smartphone, it can last you for 4 to 5 years and there is no need to change a new one after 2 years.  Why should you be paying for another 2 years contract and the penalty of $240?  So telecom companies will give you voucher as high as $500 because you have already paid them $1000 in the last 2 years.  By sacrificing some profits, they are able to secure and lock you in for another 2 years. More good years!

When M1 started offering postpaid plan without contract, others follow reluctantly as many abandoned the postpaid contract after maturity.  It is a wise thing to do because you can choose what you need.  For example, if you only wish to call out, just pay $36.05 for unlimited minutes instead of over $200.  Imagine how much you can save or how much telecom company was earning!  The best part is you have the freedom to jump ship anytime since there is no contract to bind you for 24 months.  Besides choosing a phone which you like that can last for more than 2 years, you must decide which plan is suitable for you?

Look no further, just participate in the survey below and we will send you the best plan to suit your lifestyle with the minimum cost.  Do not trap yourself with the current mindset of 2 years contract and get a new phone.  You should free yourself from the standard S$36 for a 100-min/mth plan and look beyond the free phone and contract.  Communication should be bond free to be enjoyable.