TPG fires fresh shot in NBN war

The telco has launched its most ‘aggressive’ broadband plans to date as it looks to undercut the NBN.

TPG has launched a new campaign to deter customers from NBN plans. Picture: William WEST / AFP

TPG Telecom has launched what it says is its “most aggressive” broadband plans as it moves to undercut the government-owned NBN Co via its iiNet brand.

Australia’s third-biggest telco has slashed the price of its 90 megabits per second monthly plan by $35 to $54.99 for the first 12 months after signing. This compares with $69.99 for the NBN’s basic 12Mbps second plan.

The price war comes as TPG blasted Australia’s competition regulator for seeking to “protect” the NBN after the watchdog launched new wholesale price rules for alternative broadband networks.

TPG consumer boss Kieren Cooney said the price cut was more about helping alleviate the cost of living crunch.

“In an environment where Australians are feeling the pinch of living costs, consumers need affordable broadband. iiNet is proud to offer a plan that not only delivers great speed, but provides substantial savings that make a real difference to household budgets,” he said.

iiNet broadband prices have been slashed to attract customers aware from NBN plans. Picture: Lukas Coch/AAP Image

“The NBN is not the be-all and end-all of broadband connectivity, and this proves it. By using an alternative infrastructure provider like Vision Network, we can provide high-speed at great value prices that aren’t possible on the NBN.”

In March, the Australian Competition and Consumer Commission announced it would force TPG and Uniti – the two biggest suppliers of superfast fixed-line broadband – to benchmark their prices against NBN Co’s.

TPG and Uniti dominated the superfast broadband network or SBAS market – a service that is similar to the government-owned telco.

The ACCC says since 2017 the SBAS market has consolidated as bigger firms acquire smaller rivals, leaving TPG – via its Vision Network – and Uniti as the dominant players, with their networks covering more than one million premises, primarily in apartment buildings and new residential estates.

The ACCC says the new regulation “strikes the right balance” between protecting consumers and ensuring competition among NBN rivals. But TPG criticised the decision, saying if its prices weren’t competitive against the NBN’s, its customers would leave, and likened the new regulation to protectionism.

Mr Cooney said many Australians “find it challenging” to afford high-speed broadband, which limited their ability to access essential online services.

“Addressing affordability is key to unlocking the full potential of broadband for everyone. At iiNet, we believe access to high-speed internet shouldn’t be a luxury. With our Ultra Broadband plan, we’re ensuring more Australians can enjoy top-tier internet speeds without the top-tier price tag.”

Mr Cooney said the new iiNet plan has been specifically tailored for a select number of regional Victorian centres, including Geelong, Mildura and Ballarat, Canberra and major metro cities where TPG’s Vision Network provides competition to the NBN.

The Vision Network covers 400,000 households with its cable and VDSL network, making it Australia’s biggest non-NBN wholesale broadband network.

Last September, TPG’s Vision Network took on the NBN, slashing its wholesale costs to retailers as debate over broadband affordability raged. Wholesale pricing for its 100Mbps plans, for example, fell to $50 per month, which is now 10 per cent cheaper than NBN Co.

TPG also upgraded Vision’s fibre to the building technology in metro apartment buildings and in Canberra to support G.fast, which enabled speeds of up to a gigabit.

This prompted ACCC commissioner Anna Brakey to announce new rules that require benchmarking against equivalent NBN access costs, which she said would allow retailers to develop consistent product offerings to consumers across all networks.

“We have made this access determination so the one million or so Australians who rely on these networks for internet at their homes or businesses can select from a broader range of retailers and offers that can better meet their needs,” Ms Brakey said earlier this year.

“The final regulation we’ve settled on contains specific price terms, benchmarked against NBN Co’s pricing, that will enable consumers and businesses to find retail offers that are similar to, or better than, those available on the NBN.”