Optus has unveiled its plans to disrupt and reinforce its presence in Australias Mobile Virtual Network Operator (MVNO) market. The Company has announced two bold initiatives: first, entering into a purchase agreement with amaysim (ASX: AYS) to acquire Australias largest MVNO mobile business; and second, launching Gomo, a new digital brand designed for those seeking simple plans and budget friendly telecommunication services.
Optus CEO Kelly Bayer Rosmarin describes the announcements as strategic plays designed to disrupt the MVNO market and offer greater choice for value-seeking customers.
Todays 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 Australias 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. Thats why we are so excited to extend our reach and appeal by adding Australias largest and most successful MVNO brand, amaysim, and a new digital brand, Gomo, to our line-up.
Optus set to acquire amaysim, Australias largest MVNO
Under the agreement with amaysim, the fourth largest mobile provider in Australia, Optus will acquire the shares of its mobile holding company and its customer base of approximately 1.19 million subscribers for $250 million, subject to completion conditions, including amaysims shareholder approval, and payment adjustments.
amaysim Chief Executive Officer and Founder, Peter OConnell, 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.”
Optus values the strong performance and customer first focus of the amaysim business and after the acquisition, amaysim will remain as a standalone brand with strong parallels and complementary strengths to Optus challenger position in the market.
In only ten years, amaysim has grown to be Australias largest MVNO, building a brand and service offering that has resonated with Australian consumers, said Ms Bayer Rosmarin.
Already underpinned by Optus premium 4G network, amaysim has a customer-oriented philosophy which very much aligns with Optus own customer-first approach. Optus will keep the amaysim brand intact and this deal will provide the certainty and backing amaysim needs to power ahead and accelerate its growth in the MVNO segment.
As its many awards attest, amaysim has successfully resonated with a broad segment of the Australian market. This acquisition cements the long-term relationship between Optus and amaysim and guarantees that amaysim customers will continue to enjoy the benefits of Optus premium mobile network. We welcome the amaysim team into the Optus family.
Optus launches Gomo: the telco solution for customers craving simplicity
Building on Optuss track record as digital leader, Gomo will be a true digital-only offering in the MVNO market. With its straight-forward subscription pricing, Gomo will target value-conscious Australians seeking easy mobile connectivity.
To control their account, Gomo customers will have a digital interface the Gomo app which can be accessed 24/7 for onboarding, service and payments. Gomo customers will benefit from Optus premium nationwide network, with full accessibility to its 4G coverage of more than 98% of Australians and quickly growing 5G network.
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 weve prioritised that in our offering, along with flexibility and simple activation, so value-seekers get everything they want, and nothing they dont.
Gomo has resulted from in-depth research of what consumers want and what they dont want and placed it all in the context of an economically challenging period. It also leverages learnings from Singtels successful Gomo apps in Singapore, the Philippines, Indonesia, and Thailand, and is set to provide a beautifully simple experience.
Utilising Optus mastery of digital experiences, Gomo is set to be the real challenger brand of the MVNO market just as Optus is the challenger in the MNO market – and we plan to really shake up the market with what Gomo has to offer.
More details will be announced soon.
