New mobile service provider justifies entrance to market

Won’t be “everything to everyone”: Amaysim CEO

Latest Australian mobile entrant Amaysim claims there is room for the company in the crowded mobile service provider market.

CEO, Rolf Hansen, said what makes Amaysim different from other providers is price and customer service.

“Our call centre is based in Australia because as beautiful as India and the Philippines are, there is nothing like talking to someone in the same country," he said.

The company offers sim cards run on the Optus 3G network and plans to entice consumers with call rates of $0.15 a minute on any network at any time, SMS messages for $0.12 each and data at $0.50 a megabyte.

It is also offering a no minimum term contract.

Hansen said the company is only targeting consumers who live in metropolitan areas of Australia.

“There are 15.2 million people in Australia who pay for mobile plans out of their own pocket so there is plenty of opportunity in that consumer space," he said. "We don’t want to be everything to everyone."

According to research commissioned by Amaysim, two thirds of some 1093 respondents Australians are dissatisfied with their current service provider, with the most common complaints including high costs (30 per cent) and poor customer service (23 per cent).

Complex pricing and confusing cap plans are also problematic for mobile phone users, with 81 per cent unaware of the reasons why a flagfall fee is charged at the start of each call and over three quarters considering it a rip-off.

Hansen said the company has no plans to open retail stores and plans to keep costs down by operating through a retail website where the sim cards can be purchased for $2.

However, the sim cards will also be available at over 2000 retail outlets including 7-Eleven, Harvey Norman, Woolworths Petrol and Newslink.

He said its business model is based on a similar cut price model called Simyo that he ran in Europe before it was sold to Dutch telecommunications giant KPN.

Simyo operates in Germany, Belgium, The Netherlands and Spain.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAu

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