National broadband provider TPG today claimed it was signing up customers faster than any of its rivals, including fast-growing iiNet, as well as the nation’s two major telcos Telstra and Optus, with the upstart telco on track to crack the half a million customer level by the end of September.
In documents associated with its annual financial results released today, the company published a chart (above), which appeared to show that it was gaining broadband subscribers on an organic basis — that is, without acquiring other companies as iiNet has — much faster than competitors. TPG added more than 100,000 new subscribers (net) over the past year, with numbers growing especially fast over the first six months of the financial year.
The growth will put TPG just behind iiNet in terms of subscribers, with iiNet revealing last month that it now had 539,000 broadband customers with the acquisition of Netspace — and would add another 113,000 more with its buyout of the consumer division of AAPT.
There are only “four and a half” meaningful players left in Australia’s internet service provider market, iiNet supremo Michael Malone said at the time — with companies like Primus, Eftel and others just not relevant any more in terms of providing competition. The “half” was Internode.
However, TPG’s mobile customer base was actually shrinking — down from 219,000 in January 2009 to 201,000 in July 2010. The company is speedily transferring customers from its Soul brand onto the TPG Mobile brand.
In addition, TPG claimed Australians were increasingly demanding broadband connections with unlimited download quota.
“TPG has continued to lead the broadband marketplace in providing high-speed services of excellent value, with the result today that Australian internet users are increasingly expecting unlimited broadband access,” the company said today in statements released alongside its financial results for the year ended 31 July.
The news comes as a number of Australian ISPs — including TPG itself — have recently launched plans with a terabyte or higher of monthly downloads included, sparking a flurry of revamped broadband plans. TPG also, however, offers an “Unlimited” ADSL2+ plan for $75 a month that does not shape customers’ speeds when they reach a certain download limit.
Financial results
From a financial perspective, TPG’s revenue grew 6 percent in the year to hit $508.2 million, with earnings before interest, taxation, depreciation and amortisation rising 42 percent to reach $171.1 million. TPG said its results meant it had exceeded its financial guidance for the year.
With relation to its acquisition of wholesale fibre player PIPE Networks, TPG said its subsidiary’s domestic backhaul and metropolitan fibre — when combined with TPG’s data and voice services — was presenting “excellent” corporate revenue and margin growth opportunities.
In addition, since PIPE was acquired, the company’s domestic business had “also continued to grow very strongly in its own right”, TPG said.
Image credit: Screenshot of TPG ASX presentation
“TPG added more than 100,000 new subscribers (net) over the past year, with numbers growing especially fast over the past six months.”
Not quite – the numbers show that there were 46k added in the last six months and 100k in the last 12 months, which means that the first half of that year added 54k customers.
It’s also a fairly meaningless claim given the number of customers Bigpond are apparently attracting with their (allegedly below TW wholesale cost) new plans.
You’re right, Steven — what the TPG release referred to in terms of numbers growing fast was on-net subscribers, not subscribers total. I have modified the article to reflect this.
And just curious — where did you hear about BigPond’s growth here? Not sure if I remember anything from their recent financial results.
It’s just unconfirmed rumours from Whirlpool ;-)
The new plans started in July so we’ll probably see different figures in the next set of financial results.
They should post their churn rate figures – as well as customer satisfaction.. compare that to iiNet =)
Well, I churned from iiNet to TPG a little over a month ago and could not be happier, TPG is honestly better in pretty much every way.
Some have problems sure, I’m happy as larry.
You’re happy with a Phillipino call centre that hangs up on you with difficult calls?
I placed 3 calls in one night. First call – 15 minute wait; hung up on. Second call – 10 minute wait; person was just typing on their PC for 5 minutes. Didn’t respond to my hello’s or anything. Third call – 8 minute wait; After 47 minutes of trying to figure out what was wrong, I was asked “Is it working yet?” “No.” *Hangs up on me*
Immediately after that I moved over to Netspace. Their call centre is in Melbourne and their service is so much better. Couldn’t be happier
Have phoned the call center once so far and was never hung up on, person even double checked her information with a supervisor to be certain I was given the right info.
Mailed email support a few times, always get a response within 5 mins.
Maybe you got a bad run, sucks.
I’m not sure why people keep on mentioning this.
This might have applied 6 years ago. But these days TPG have really inproved their customer service, and product.
Telco’s can fool themselves in thinking offering the highest standards in customer service will retain and gain new customers.
Last time I checked all the big telco’s use off shore call centers anyway. They are all the same.
BTW: Telco’s know all this, they just want to avoid competing on price. Charge as much as the customer will pay on the perception that they will get better customer service, if, and i stress IF they actually use it.
“Last time I checked all the big telco’s use off shore call centers anyway.”
I’d recommend checking again…
Optus have their support based in India for quite a few of their applications.
Oh – but they will tell you they don’t but tht’s because their vendor, HP, who run a lot of their applications do!
Try getting help about your mobile bill at Optus and you will ultiamtely deal with an Indian support person.
Yep – Optus went to it’s vendors and said ‘we want to oursource a whole swag of applications so start bidding’. HP bid and won the majority and axed it’s people in Australia and transferred the work to their Indian operations centre.
I wasn’t referring to Optus – AFAIK iiNet have most of their support staff in Australia (with staff in New Zealand and South Africa used to provide out-of-hours support), and others such as Adam Internet and Internode have 100% local call centres. Primus apparently have most or all of their support staff within Australia.
TPG failed to activate the correct phone line at my address for over 8 weeks. They activated the wrong line, they mistyped my direct debit details AND FINED ME FOR IT, they mistyped my address, and they were exceedingly rude and unapologetic. Anyone considering them should go with iiNet or Internode instead.
TPG is an awful company that has taken to selling contracts – if you get your service connected, more power to you, but their customer support is the worst in Australia.
“In addition, TPG claimed Australians were increasingly demanding broadband connections with unlimited download quota.”
This is very true, if anyone wants to compete with TPG they must offer Unlimited.
I am with TPG because they give me unlimited internet, and it’s not about downloading the internet, its more the freedom of never having your internet slow down, or having to worry about using too much data, off peak on peak times ect ect.
I love TPG internet keep up the great unlimited deals.
I think that TPG will have more customers than iinet in the near future.
Lets see the figures in 12months if they keep upload counted only plans..
Why does the upload matter if your limit is ‘unlimited’ or 1000GB ?
Its simple, TPG is the ONLY ISP that is still rolling out mass DSLAM installs.
Optus, iiNet, Telstra, Internode, iPrimus are installing at an absolute trickle.
Much as I hate TPG, well Done for putting DSLAM”s outside of the CBD.
TPG’s business plan is to put DSLAM’s in area’s that have no competition, ie. regional towns. This basically gives TPG sole competition over telstra since you get more bang for buck with TPG than Telstra.
Something the other ISP’s cant get thru their thick money hungry heads!
No Jimmy, you are not correct – TPG are currently rolling out to six exchanges while Agile are currently rolling out to 24. TPG’s DSLAMs under construction are also all within major metropolitan areas (under 50km from CBDs), whereas others are building elsewhere (e.g. in Alice Springs). SPT rolled out in a lot of regional areas, but not TPG…
Keep in mind TPG just recently turned on a load of exchanged (mine included <3)
Suchas:
may 2
Smithfield (SMFD) SA exchange
may 9
Belmont (BELM) VIC exchange
may 26 exchange
Joondalup (JDLP) WA exchange
Cannington (CANN) WA exchange
Mt Hawthorn (MHAW) WA exchange
Fremantle (FMTL) WA exchange
Rockingham (RKHM) WA exchange
may 30
Burwood (BURW) VIC exchange
Mornington (MORN) VIC exchange
june 2
Mullaloo (MLOO) WA exchange
jun 10
Glenunga (GUGA) SA exchange
Seaford (SEFD) SA exchange
aug 17
Ballajura (BLJA) WA exchange.
aug 18
Port Adelaide (PTAD) SA Exchange
TPG likely 'only' have 6 left on rollout as they already have more exchanges than everyone bar Telstra activated, probably running out of areas Telstra won't want $150 ULL ;-)
“Keep in mind TPG just recently turned on a load of exchanged”
Agile have activated a similar number of new exchanges since May also (including at least two in regional areas).
Partial list:
KOOYONG 2010-09-14
ASCOT 2010-08-11
NEWMARKET 2010-07-29
FLEMINGTON 2010-07-26
GLEN IRIS 2010-07-15
EAST KEW 2010-07-15
TALLY HO 2010-07-15
PORT PIRIE 2010-07-15
RINGWOOD 2010-07-06
MITCHELTON 2010-07-06
COORPAROO 2010-06-23
KARINGAL 2010-06-07
IVANHOE 2010-05-24
MOUNT GAMBIER 2010-05-20
CHERMSIDE 2010-05-18
BELLERIVE 2010-05-12
PENNANT HILLS 2010-05-12
DEE WHY 2010-05-12
Except their list includes planned exchanges. It took Internode/Agile 2 1/2 years to get my exchange from “planned” to “built”. They also have a tiny number of exchanges compared to the other ISPs, so of course they are going to have more planned as they have more thats required to be built. No offence to Internode/Agile, I’ve been with them for 7 years but they dont have the same funding as other companies to invest in this sort of infrastructure – their DSLAM rollout has been pathetic.
Only 2 of the 24 are planned – 16 are actively building, and 6 are in build – waiting (where they’re waiting for Telstra to let them into the exchange).
“It took Internode/Agile 2 1/2 years to get my exchange from “planned” to “built”.”
Did it go straight from planned to in build, or did it spend some of that time waiting (thanks entirely to Telstra)?
I churned to Tpg from Iinet after being with them for 4 years . Why did I churn I got sick of hearing how Iiinet did not want and would have high quota plans, which they brought out a couple of months after I churned.
I get faster sync rates and no disconnections on Tpg with Iinet I got multiple disconnects everyday.
I have a 200gig plan with no offpeak and capping at 4meg down and 1 meg up. Which would allow me to get one 1tb for $30 a month cheaper than Iinets.
TPG yeah good ol TPG constant drop out’s and slow downs.
Woeful customer service but when the internet is running fine no issues.
But then congestion starts and speeds drop as low as almost dial up speeds.
I am on contact with TPG and if they don’t do something for the appailing performance I am willing to pay extra to an ISP that has less issues.
Dropouts?
ADSLUPTIME: 19 Day(s) 21:18:45
Congestion?
It’s peak time at the moment:
per>cbr
http://www.speedtest.net/result/962966489.png
per>syd
http://www.speedtest.net/result/962967320.png
100% speed, or at least 95%+ – not bad for a 15 second sample.
Yep… gotta love TPG. I consistently sync around 4mbs, despite being only about 1km from my exchange. Over the past couple of years, I’ve slowly replaced pretty much all the equipment in my house (modem, phones, filters, etc) on TPG’s “advice” that they might be the cause. But nothing changes. Not that it really matters, because during peak times, everything slows to a crawl because they are massively over-subscribed. They’ll deny it furiously, of course. And good luck raising the issue with their call centre… you’ll be on hold for 45 minutes, before you get some idiot from the Philippines that barely knows what broadband IS, let alone how to diagnose a complicatated problem.
But they’re cheap and offer insane download limits.
Maybe your on a bad exchange, it’s certainly nothing network wide.
Its good that TPG can offer such excellent deal but their service has been nothing but rubbish. The speeds are horrible they advertise their services on TV as super fast ADSL2+.
What is the point of offering such services when you really cannot use them to their advantage super fast ADSL2+ what a complete joke.
I was originally with westnet I have really regretted changing from them to TPG.
TPG are a joke and complete rubbish.
Have you reported this to TPG? Maybe your on a congested exchange.
It’s nothing network wide at any rate, I churned from iiNet to TPG and TPG’s network is far more reliable and responsive than iiNet’s imho.
I’m another customer who moved from iinet to TPG.
The ADSL service is faster, the allowances more generous per dollar spent and in the two phone calls I made to TPG the customer service were answered quickly, and the staff gave me the answers to my questions in a matter of seconds.
I was apprehensive in switching to TPG at first, having heard the sorts of horror stories that are appearing in the comments to this blog post…. but after getting capped to 64Kbit by iinet I decided to take a chance and couldnt be happier.
I think most of the people who complain are just parroting comments they heard many years ago, and/or are trying to justify why they are paying more for less.
Stats:
System Up Time 15:08:25:31
Line Up Time 15:08:25:20
DSL Speed (DS/US) 21293/1020 Kbps
Test run on 23/09/2010 @ 12:49 AM
Mirror: Smelly Black Dog
Data: 9 MB
Test Time: 4.43 secs
Your line speed is 17.05 Mbps (17051 kbps).
Your download speed is 2.08 MB/s (2131 KB/s).
Well for you people who have had no issues bully for you I am suppose to be paying for a service and the service I am paying for is crap! I have contacted tech support on many occasions to get my issues resolved. Even tried different modems to see if it was my equipment but no still had slow downs and drop outs.
I use to be with Adam internet and rarely I had any drop outs or slow downs but as soon as I churned to TPG the problems begin to surface and TPG just fails to admit there is something wrong at their end.
What I have done is
Phone line checked: No problems
Modems changed from Billion, Dlink, Netcomm just to name a few and still the issues still happen.
I ask the tech support if there is any problems with the exchange and I got a flat out NO.
Last night the internet was that unbearable I gave up in the end.
Next step will be the TIO because I have exhausted all my energy with the tech support and nothing gets fixed.
I pay for internet access not get the run around and piss poor service I am fed up with TPG I am going to Terminate my contract with them if the TIO does nothing and I am going to pay for an ISP that actually works.
Sure they are cheap but I am wasting my money on crap service and TPG fan club don’t like it then pull ya heads in.
1 very pissed off TPG user.
TPG provides horrible service in my personal experience.
I agree TPG service is rubbish you get what you pay for in the end
I have had a great experience with TPG. Connected quickly, helped out consistently, never disconnected… I am quite happy!
Much better than the connection I had with Telstra and has so far been even more reliable than the Optus cable.
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