It’s a wild ride in the Telco space with Optus today announcing they were acquiring the biggest MVNO in Australia Amaysim as well as launching a new digitally focused low cost telco GoMo – all this just 2.5 years since shutting down their own low cost brand Virgin Mobile.
Just 22 days shy of ten years since Amaysim launched the brand is being gobbled up by the very network on which it’s built. Since launch Amaysim has operated on the Optus Network, growing to become Australia’s fourth largest telco brand.
Their huge customer base coming through great value offering and several telco acquisitions of their own and offering important customer numbers to Optus. Those numbers now become Optus’ own with the Telco looking to complete a purchase subject to shareholder approval and all such things.
Optus CEO Kelly Bayer Rosmarin sees it as a strategic move for the company “Today’s announcements demonstrate our commitment to winning the hearts and minds of all Australians, adding two new complementary brands to Optus to cater to the needs of specific groups of customers.
“Optus has been rated Australia’s strongest brand, and is competing well in the market, but we have not had any sub brands competing in the growing MVNO segment of the market. That’s why we are so excited to extend our reach and appeal by adding Australia’s largest and most successful MVNO brand, amaysim, and a new digital brand, Gomo, to our line-up.”
Amaysim’s CEO Peter O’Connell said “We are delighted to announce the proposed sale of amaysim’s mobile business to our long-term strategic wholesale partner, Optus. amaysim has a first-class team that cares for its customers which Optus has recognised through this acquisition. We believe Optus, with its deep knowledge of our operations, is well-placed to look after our customers and take the growth of the business to the next level.
“I am very proud of the business we have built over the last 10 years and, since listing on the ASX in 2015, we have achieved healthy organic growth complemented by successful strategic acquisitions of Vaya, Jeenee and OVO’s customers. We had to continuously reinvent ourselves and adapt to intense competition and despite the challenges, amaysim has grown its mobile subscriber base, delivered best-in-class customer service and maintained its incredible culture.”
The $250 million dollar deal values each Amaysim customer at roughly $210 which is a decent value per user, which also as I’ve said before points to Aussie’s reluctance to switch carriers.
At the same time, Optus announced Gomo, a new digital only brand, looking to offer simple pricing and a digital only interface – that is, no phone call centre or support.
No plans have been announced, but Matt Williams, Optus Managing Director of Marketing and Revenue, said, “Gomo is the go-to solution for Australians who just want more affordable, mobile connectivity, plain and easy. We know customers prefer digital service options, so we’ve prioritised that in our offering, along with flexibility and simple activation, so value-seekers get everything they want, and nothing they don’t.
Optus’ parent company Singtel has had success with the Gomo format the app based approach overseas, and will simply leverage that here in Australia.
Farewell Amaysim, not as a brand, but as a disruptor.