|Traded as||ASX: TPM|
|Founded||1986 as Total Peripherals Group|
|Headquarters||65 Waterloo Road |
North Ryde, NSW, Australia
|David Teoh (founder, executive chairman)|
|Services||Internet service provider |
|Revenue||A$970.9 million (2014)|
|A$246.8 million (2014)|
|A$171.7 million (2014)|
|Total assets||A$832.4 million (2014)|
|Total equity||A$832 million (2014)|
Number of employees
|5,083 (July 2016)|
TPG Telecom Limited is an Australian telecommunications and IT company that specialises in consumer and business internet services as well as mobile telephone services. As of August 2015, TPG is the second largest internet service provider in Australia and is the largest mobile virtual network operator. As such, it has over 671,000 ADSL2+ subscribers, 358,000 landline subscribers and 360,000 mobile subscribers, and owns the second largest ADSL2+ network in Australia, consisting of 391 ADSL2+ DSLAMs.
The company was formed from the merger between Total Peripherals Group, which was established in 1986 by David and Vicky Teoh, and SP Telemedia in 2008. In August 2018, TPG and Vodafone Hutchison Australia announced their intention to merge, with TPG holding a 49.9% stake in the merged company.
TPG provide five ranges of products and services including Internet access, networking, OEM services, mobile phone service and accounting software.
Total Peripherals Group was established in 1986 by Malaysian-born Australian businessman David Teoh, as an IT company that sold OEM computers and later moved to provide internet and mobile telephone services.
In 2007, TPG took a 70 per cent controlling interest in then struggling Adelaide internet provider Chariot. David Teoh shored up TPG's role as Chariot's parent company a year later, in April 2008, and then quickly followed up with the $225 million reverse takeover of SP Telemedia to bring Soul, Chariot and TPG under the one banner.
Soul Converged Communications, formally known as Comindico, was an Australian telecommunications company based in Sydney. Soul's main activities revolve around telecommunications, with business and home and small business divisions. In April 2005, it bought a 42.9 per cent stake in mobile phone company B Digital. In September 2006 Soul increased its stake in B Digital to 74.6 per cent and made a full takeover offer.
In April 2008, SOT merged with Total Peripherals Group at a cost of $150 million in cash and $230 million in shares (approximately 80 million) with TPG Owner, David Teoh becoming the largest shareholder and Executive Chairman of the combined group. On 25 November 2009, following shareholder approval, SP Telemedia Ltd (Trading as Soul) changed its name to TPG Telecom Ltd. The ASX code was changed also from SOT to TPM.
In November 2009, TPG, which already owned a substantial portion of PIPE Networks' shares, announced it intended to acquire the company. TPG completed its acquisition of PIPE for $373 million by way of scheme of arrangement on 31 March 2010, after shareholders and government bodies approved the transaction. The acquisition allows TPG to gain full control of PIPE Networks' fibre optic network in Australia and the Pipe Pacific Cable (PPC-1), connecting Sydney to Guam.
TPG, in a statement released on 14 July 2011, announced it intended to acquire IntraPower for $12.8 million. It was also stated in the statement that the Board of Directors of IntraPower recommended the shareholders of the company approve the transaction. The acquisition was completed on 30 August, allowing TPG to benefit from TrustedCloud and other IntraPower products.
On 9 December 2013, TPG purchased AAPT from Telecom New Zealand for $450 million. The transaction allows TPG to gain control of AAPT's fibre-optic network, which extends across six Australian states and territories, and is estimated to be 11,000 km in length. The transaction was expected to be finalised by February 2014.
On 13 March 2015, TPG advised of its intent to take over Australia's third Largest ISP iiNet at A$8.60 per share, giving a value of $1.4 billion. TPG offered $8.60 per iiNet share, on top of the entitlement to the already-declared 10.5 cent interim dividend, valuing iiNet at about 21 times its underlying net profit for 2014. The deal was approved by shareholders on 27 July, and by the ACCC on 20 August 2015. This made TPG Australia's second-largest ISP by customer volume after Telstra.
On 7 May 2013, TPG won a $13.5 million bid for two 10 MHz spectra of the 2.5 GHz band. TPG, which operates a mobile virtual network, in a statement, announced that the network would allow it to offer "value-adding" wireless broadband products to its customers. Although TPG did not reveal what the purpose of the spectra would be, the 2.5 GHz band is expected to be used as a 4G channel. The network will be switched on in October 2014.
On 17 September 2013, during TPG's financial year results presentation, it was announced that the company plans on constructing fibre to the Building (FTTB) networks, capable of offering a bandwidth of 100Mbit/s, in five major capital cities. It was also estimated that the cost of the plans would be $69.99 per month, lower than the current price of NBN plans though it excludes initial connection and setup costs. Although, final costs have yet to be determined, the network is expected to compete with the NBN, leading to calls from the research director of Ovum, David Kennedy, for NBN Co to respond competitively.
- PIPE Networks
TPG Internet sells many internet services, such as dialup, ADSL, ADSL2+, fibre and SHDSL broadband access, email services, website and domain name hosting, IPTV, VoIP solutions and virtual phone cards. TPG also include plans and bundles on the National Broadband Network (NBN).
On 24 September 2010, TPG introduced a phone-line bundled unlimited plan that included unlimited, unmetered uploads and downloads and free IPTV.
After a limited beta, TPG officially launched IPTV service on 12 June 2007. IPTV is available to all ADSL2+ customers on supported exchanges. It is not currently known when broadcasters from other licence areas will be provided on this service, or if the service currently available in Sydney will remain broadcasting. In the Sydney area, Free To Air Broadcasters are also made available.
The current channels, predominately news-oriented, are all free. Subscription-based channels are expected in the future.
TPG Software, trading as Catsoft, makes and sells accounting software to businesses.
TPG Boomerang TV
TPG Mobile acts as a Mobile Virtual Network Operator for the Optus network since August 2008. In late 2015, TPG switched its mobile service provider to Vodafone. However, TPG subsidiary iiNet still acts as a Mobile Virtual Network Operator on the Optus network, as does TPG subsidiary Internode.
AAPT is TPG's wholesale arm.
|Year||Broadband subscribers||Mobile subscribers|
|2009||388,000||220,000 (130,000 Soul subscribers, 90,000 TPG subscribers)|
|2010||488,000||201,000 (45,000 Soul subscribers, 156,000 TPG subscribers)|
|2011||548,000||201,000 (9,000 Soul subscribers, 192,000 TPG subscribers)|
A lawsuit over TPG's advertising campaigns was filed against TPG Telecom by the Australian Competition and Consumer Commission (ACCC) in December 2010. The ACCC accused TPG of misleading its customers by advertising that its "unlimited" broadband package only cost $29.99 per month when the actual minimum monthly cost for the plan is $59.99. The ACCC also claimed in the lawsuit that TPG did not adequately disclose other costs associated with the setting up of the connection. In response, TPG released a statement saying that it believes all costs were adequately noted in the advertisement and that it was "disappointed" with the ACCC's decision to bring the issue to court. In November 2011, the Federal Court ruled against TPG and fined the company $2 million, however the fine was reduced to $50,000 after TPG appealed to the full bench of the Federal Court. The ACCC later filed an appeal in the High Court, which was approved in August 2013.
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- FY2016 Annual Report
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