Swoop Locks in TPG Mobile Deal to Boost Margins 50% and Add 45,000 Subscribers
Swoop Holdings has entered a Mobile Virtual Network Operator (MVNO) wholesale agreement with TPG Telecom (ASX: TPG), effective 16 June 2026. The partnership provides Moose Mobile, Swoop’s subsidiary, with wholesale access to TPG’s national mobile network and is anticipated to deliver a gross margin percentage improvement of +50% across FY27, FY28 and FY29. The agreement underpins Swoop’s target to grow its mobile subscriber base from approximately 135,000 to more than 180,000 services in operation over the next three years.
Swoop secures tier-one mobile network deal with TPG Telecom
The wholesale agreement positions Swoop to strengthen its mobile offering across residential, business and wholesale segments by leveraging TPG’s established national infrastructure. The partnership coincides with two concurrent product initiatives: deployment of a new billing platform and the launch of eSIM capability. These enhancements are designed to improve the customer experience and support Swoop’s ambition to deepen wallet share within the home.
David Michaels, Chief Revenue Officer at Swoop, stated:
David Michaels, Chief Revenue Officer, Swoop Holdings Limited
“This agreement marks a significant step in Swoop’s mobile strategy. Securing a wholesale partnership with a tier-one carrier on terms that improve our gross margin profile gives us both the commercial discipline and the network capability to grow mobile profitably. We see a substantial market opportunity ahead, and this partnership positions us well to capture it.”
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What is an MVNO and why does it matter for telco investors?
A Mobile Virtual Network Operator (MVNO) is a telecommunications carrier that does not own physical network infrastructure. Instead, it purchases wholesale access from an established network operator, which owns the towers, spectrum licences, and core network equipment. This business model allows smaller providers to compete in the mobile market without the capital outlay required to build and maintain network assets.
Wholesale terms directly impact profitability in the MVNO model. Lower wholesale costs per user translate to higher gross margins on every subscriber, assuming consistent retail pricing. For Swoop, securing favourable wholesale rates from TPG means improved unit economics across its entire mobile base. The company can maintain its value-focused customer proposition while simultaneously expanding profitability at the gross margin level. This dynamic explains why wholesale agreement terms are a critical driver of long-term financial performance in telecommunications.
Gross margin improvement of 50% expected over three years
The partnership is anticipated to deliver a gross margin percentage improvement of +50% across FY27, FY28 and FY29. This improvement stems from a reduction in average cost per user (ACPU), which flows directly through to blended gross margins across Swoop’s mobile subscriber base.
The improved unit economics allow Swoop to maintain its existing sales proposition—targeting value-seeking customers—while expanding profitability behind the scenes. Rather than increasing retail prices or shifting market positioning, the company benefits from structurally lower input costs at the wholesale level.
| Metric | Period | Expected Impact |
|---|---|---|
| Gross Margin Improvement | FY27 – FY29 | +50% |
| Mechanism | Reduced ACPU | Lower wholesale costs per user |
| Application | Entire mobile base | Blended margin uplift |
The improvement represents structural earnings enhancement rather than a one-off repricing event. Each mobile subscriber acquired under the new wholesale terms contributes higher gross profit than under the previous arrangement, creating compounding benefits as the subscriber base grows.
Subscriber growth target of 180,000 mobile services
Swoop currently serves approximately 135,000 mobile subscribers and targets growth to more than 180,000 services in operation over the next three years. This represents net subscriber growth of more than 45,000 services.
The company attributes the growth opportunity to TPG’s expanded network coverage and capability, which broadens the addressable market for Moose Mobile’s value-seeking customer segment.
| Metric | Current | Target | Timeframe |
|---|---|---|---|
| Mobile Subscribers | ~135,000 | +180,000 SIO | 3 years |
| Net Growth | — | +45,000 | — |
The subscriber growth target combined with gross margin expansion suggests a pathway to revenue scale that simultaneously improves profitability. If achieved, the company would add new subscribers at higher unit margins than the existing base, accelerating earnings growth relative to revenue growth.
Product enhancements to deepen customer relationships
Swoop is deploying two product initiatives alongside the TPG partnership to improve customer experience and support wallet share growth:
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New billing platform deployment — The platform upgrade is designed to improve operational efficiency and customer service interactions across residential, business and wholesale segments.
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eSIM launch — eSIM capability enables faster activation and greater flexibility for customers, removing the friction associated with physical SIM card distribution and replacement.
These enhancements apply across Swoop’s entire customer base and are positioned to support customer retention and cross-selling opportunities. By improving the underlying product experience, the company aims to increase lifetime value per subscriber through both longer tenure and higher average revenue per user.
Strategic positioning in the value segment
Moose Mobile targets value-seeking customers, a segment characterised by price sensitivity and a willingness to switch providers for better terms. The TPG partnership allows Swoop to maintain a competitive retail pricing position while improving profitability at the wholesale cost level. This dynamic creates a defensible competitive position: the company can match or undercut competitor pricing while generating higher margins per subscriber.
Jonathan Rutherford, Group Executive, Enterprise, Government and Wholesale at TPG Telecom, commented on the agreement:
Jonathan Rutherford, Group Executive, Enterprise, Government and Wholesale, TPG Telecom Group
“This partnership is further proof that the strength of our mobile network is driving greater competition and giving Australians more choice. We’re pleased that Swoop and Moose Mobile have chosen to build its business on the TPG Telecom network.”
By securing wholesale terms that reduce input costs, Swoop can compete aggressively in the value segment without sacrificing margin profile. This positioning is particularly relevant in a market where price-conscious consumers actively compare plans and switch providers based on cost.
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What comes next for Swoop
The wholesale agreement is now effective as of 16 June 2026, with gross margin improvements anticipated to flow through across FY27, FY28 and FY29. The company has stated its ambition to become Australia’s best challenger internet and telecommunications provider, a goal supported by the combination of tier-one network infrastructure, improved unit economics, and product platform investments.
Over the next three years, Swoop’s strategy centres on three concurrent drivers: margin expansion from reduced wholesale costs, subscriber growth enabled by broader network coverage, and platform enhancements that support customer retention and cross-selling. If executed as outlined, these elements converge to create profitable scale in both mobile and NBN services.
The partnership provides the infrastructure foundation for Swoop’s multi-year growth strategy, with the financial benefits tied directly to subscriber acquisition velocity and margin realisation across the existing base.
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