Telstra and TPG are steadily losing customers to smaller competitors like Aussie Broadband, Superloop, and others.
As of the quarter ending September, Telstra had 36.5 percent market share with TPG following at 18.1 percent. Both companies are clearly bleeding users as shown on the NBN Wholesale Market Indicators Report and smaller alternatives are seeing an uptick.
Why is this happening?
Cost is the key reason Telstra customers look to switch to other providers, while TPG customers are also looking for better service.
Since many telcos no longer provide email services and NBN services can be switched in an afternoon, internet plans are not as sticky as they used to be. This frees customers up to search for the best deal.
TPG sold off its email service
TPG, which owns brands like iiNet and Internode began shuttering its email service for customers in 2023, instead passing them off to another company that charged users for the privilege.
Last year, cybercriminals stole data attached to 280.000 iiNet email addresses that had been transferred to Brisbane company Atmail.
Atmail’s email management service charges fees up to $77.40 per year after initially providing a discount to TPG customers.
Telstra’s install base is declining
Telstra’s own investor’s report shows revenue from fixed consumer and business services is in a steady decline, but average revenue per user is increasing – meaning loyal customers may be being charged more.
Telstra services are harder to get away from if you bundle products together like NBN, mobile phone, and other packages.
Standalone NBN offers little service differentiation from the rest of the market, so it’s no wonder that customers are looking for cheaper alternatives.
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