Singtel Optus is planning an aggressive push into the budget-end of the mobile market after picking up ASX-listed virtual mobile operator Amaysim for $250 million and launching a new digital-only brand dubbed Gomo.
The all-cash offer for Amaysim will see Optus gain over 1.1 million mobile customers and marks a definitive push by the telco to chase customers looking for basic mobile services at low prices.
Virtual operators, like Amaysim, resell mobile and data services over the networks of Telstra, Optus and TPG Telecom. Amaysim has had a long-running network agreement with Optus, which was due to expire in June 2022.
Optus boss Kelly Bayer Rosmarin said that buying Amaysim offers the telco a chance to directly connect with a substantial chunk of Australian mobile customers.
“This is a strategic (move) for us, Amaysim is the largest (virtual telco) in the market…it’s a great brand that resonates very strongly in the market.”
“We see real value in the (Amaysim) brand, our plan is to keep it as a stand-alone brand.”
The deal, which is subject to shareholder approval, will mark the end of the road for Amaysim as a listed entity. After floating on the ASX in 2015, Amaysim absorbed a number of smaller telco brands including Vaya, Jeene and OVO into its fold. At one point it was also a reseller of electricity services.
It sold its energy unit, Click Energy, to AGL Energy for $115 million in August, paving the way for Optus to lob a bid for the business.
Amaysim posted net revenue of $490.5 million for fiscal 2020, down 3.5 per cent year-on-year. It’s shares rose over 11 per cent to 74 cents on the back of the Optus offer.
Optus on Monday also announced the launch of a digital-only budget brand Gomo, hot on the heels of the launch of a similar product, Felix, by TPG last month.
Ms Bayer Rosmarin said Gomo will look to snare customers looking for a no-frills mobile service.
“The (virtual telco) market is not a uniform market, there’s a territory of high data users that Amaysim and Telstra’s Belong cater to and then there’s a territory of low data users and Gomo is targeted at that.”
“We have not had a problem winning in the premium market…we are doing well in the tier-1 segment and where we haven’t played at all is the tier-2 segment,” she added.
Gomo is already active in a number of markets where Singtel operates like Singapore, the Thailand, Indonesia and Philippines.
Source: Thanks smh.com