TPG Telecom has launched its new low-cost sub-brand ‘felix’.

Felix will offer a single plan costing $35 a month and capping speeds at 5Mbps, running off the Vodafone 3G/4G network.

The capped speed may limit some usefulness, TPG admits.

“We wouldn’t recommend downloading or uploading large files (for example >100MB), such as syncing to cloud storage as it may be slow to load,” the telco said.

It should be a competitor to Telstra’s low-cost subsidiary brand Belong. The major difference is that Belong plans come with data quotas, after which users are throttled to 64Kbps or must pay more.

Optus is entering the arena too, with plans to bring Singtel's low-cost Gomo mobile brand to Australia soon.