Australia’s major telcos today said they were unperturbed by the launch of mobile provider Amaysim, despite the telco offering lower prices and local customer service.
The new provider is targeting metropolitan consumers by an Australia-based call centre and no minimum terms on contracts.
A spokesperson from Telstra (ASX:TLS) did not comment on whether the entry of Amaysim to the market would have any impact on Telstra’s customer base but indicated the incumbent telco retained leaderhsip in network speeds, reliability and coverage if not price.
“We believe consumers are also looking for a full-service provider that offers the convenience of bundling and the flexibility to move plans depending on your needs,” the spokesperson told Computerworld Australia.
Virgin Mobile welcomed the competition in the market and claimed it would lead to better value for consumers.
A spokesperson for the provider told Computerworld Australia that while the telco could already compete with its “no frills” plan.
A spokesperson for Vodafone Hutchison Australia (ASX:VHA) said it would continue to offer customers a range of plans at competitive prices.
Amaysim will operate over Optus’ existing mobile network infrastructure but Optus denied it would result in the cannibalisation of the Singtel telco's own business.
“Optus sees Amaysim as complementary to our existing consumer business,” an Optus spokesperson said. “Optus has always been committed to wholesaling our network and has gained advantages from the economy of scale from the number of subscribers on our mobile network.”
Commenting on the launch, Ovum senior analyst, Nicole McCormick, said there was still plenty of room to “undercut the Big Three – Telstra, Optus and Vodafone – on pricing”.
However, she said Amaysim’s launch into the market would not pose an immediate threat to the incumbents. Instead, major telcos would readily welcome new operators targeted at niche markets that are hard for large providers to reach.
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