Big Telco Losing Customers? | Dirt Report

Telstra and TPG are losing customers

Australia’s broadband market is becoming less concentrated as customers move away from the largest providers. The video cites JPMorgan analysis suggesting that both Telstra and TPG Telecom are losing broadband customers, with many switching to smaller competitors rather than moving between the two major brands.

Telstra is still described as the market leader, holding around 36.5% of the broadband market. However, TPG’s position is presented as more challenging: its national broadband market share is reported to have declined from 23% to approximately 18% in three years. JPMorgan has also been reported as advising investors not to buy TPG stock, citing falling market share and strong competition.

Challengers are gaining ground

The providers identified as beneficiaries of this shift include Aussie Broadband, Superloop and Launtel, with Optus also retaining a significant position. The figures cited in the video put Aussie Broadband at 8.6% market share, Superloop at 7.1% and Optus at about 12.4%.

The video attributes the smaller providers’ appeal to several factors: lower prices, clearer plans and more accessible customer support. It also cites ACCC market reviews indicating that smaller providers have consistently achieved stronger customer satisfaction, particularly for transparency and support.

This suggests that customers may be placing less value on large bundled offerings and more value on straightforward broadband plans, understandable bills and responsive assistance when something goes wrong.

Price is a key issue for Telstra

A JPMorgan survey of more than 500 consumers is cited as finding that Telstra customers commonly switch to cheaper alternatives. These alternatives may offer similar speeds at a lower price, including plans from Optus and smaller challenger brands.

Telstra has responded by selling standalone internet plans rather than relying on older bundle arrangements that included a fixed-line telephone service. Despite that change, the video says Telstra continues to face a perception that it is a reliable but expensive option. The material does not establish whether the newer standalone plans have changed that perception.

TPG faces additional trust concerns

The video presents TPG’s challenge as involving more than price. Because residential broadband represents a larger share of TPG’s business, customer losses may have a more direct effect on the company’s results, according to the discussion.

Several events are cited as having affected customer trust. In 2023, TPG reportedly cut hundreds of thousands of TPG and iiNet email addresses, requiring affected customers to move to paid services. The transcript also refers to a cyberattack involving data linked to around 280,000 iiNet email addresses.

In late 2025, TPG disclosed that a customer death had been linked to a triple-zero call failure. The video does not suggest that these events alone explain all customer departures, but argues that repeated incidents can contribute to a broader perception of declining trust.

Email changes added to customer frustration

The former TPG and iiNet email services were transferred to Atmail and later sold to Norway’s Inbox.com, according to the video. Customers who had relied on free email services were reportedly moved towards a paid subscription costing about $77 a year after a 30% price increase.

The transcript says some former customers complained to the ACCC about service interruptions, locked accounts and missing emails. Atmail is described as allowing customers to opt out, although doing so may mean losing access to long-held email accounts and associated digital records.