Mobile’s low-cost opportunity

How will the emergence of low-cost mobile virtual network operators, like Amaysim, impact the operating margins of the big carriers? Is it a threat or an opportunity?

One of the conclusions from the recent State of the Mobile Nation report from Macquarie University, was that most mobile users are paying more than they want to for their phone service. Why? Because they have a fear of overspending and being hit with astronomical excess charges.

Yet Amaysim — which, incidentally, funded the report — has shown that you can make a decent margin by lowering prices, getting rid of confusion, having a user-friendly online presence and limiting the product range.

In the aviation industry, we’ve seen low-cost carriers challenge the revenues of bigger players, forcing old-style airlines to restructure, lower their cost base and simplify processes. Could the growth of mobile virtual network operators (MVNOs) see the big carriers in the telco space be forced to do the same thing? If so, where is the Telstra equivalent of Jetstar?

In this edition of Twisted Wire, Rolf Hansen, CEO of Amaysim, talks about the factors driving the success of his business, and we ask why Telstra hasn’t grasped the opportunity to launch their own low-cost division, as a stepping stone to a new mode of operation.

First published on ZDNet

Leave a Reply

Your email address will not be published.

Scroll to top