Mobile's low-cost opportunity

Summary: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?

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.

As always, you can have your comments featured in future editions of Twisted Wire by calling our feedback line: 02 9304 5198.

Running time: 30 minutes, 51 seconds.

Topics: Mobility, Telcos, Telstra

About

Phil Dobbie has a wealth of radio and business experience. He started his career in commercial radio in the UK and, since coming to Australia in 1991, has held senior marketing and management roles with Telstra, OzEmail, the British Tourist Authority and other telecommunications, media, travel and advertising businesses.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.