Showing results for 
Search instead for 
Did you mean: 
Ask a Question

How to differentiate telco offerings beyond price

Blog Author
0 0 1,125

Mobile Data.jpg


“Necessity is the mother of invention.”


With mobile usage changing at warp speed, this well-known saying is what we had in mind when designing our latest data heavy mobile plans for wholesale partners.


Australia is in the midst of a data gold rush. A decade ago, phone minutes and cheaper texts were sought after add-ons to mobile plans.


Today, data is at the top of the pile with consumers demanding higher allowances on-the-go and within their homes.


We’re a nation of data-hungry consumers; with research from the ACCC showing mobile data downloads increased 69 per cent last financial year – a trend only set to continue. It’s hardly a surprise that the same research shows the cost of mobile plans increased too.


For our Mobile Virtual Network Operator (MVNO) partners, this presents a huge opportunity to grow their customer base and revenue. But it also brings a new challenge in attracting and retaining customers.


MVNO offerings have typically drawn the attention of the value-conscious consumer. Until now, attracting this consumer has been mostly based on price differentiation; a strategy neither conducive for individual company margins or the telco industry as a whole.


This is where product innovation comes in.


Today’s consumer wants more from their mobile provider. They want value for money.


Getting more bang for your buck


The consumer necessity is clear. And at Optus, we are committed to helping our MVNO partners provide it.


Our mobile plans for MVNO partners provide huge amounts of data at attractive prices; 90GB at the top of the offering. But more than that, these mobile plans are engineered to fit the MVNO consumer base.


Specifically, they are designed for consumers who are deal-seekers and believe in paying for products in full and are choosy about selecting a provider. They shop around for the best deal optimised across every individual service they require.


In our experience, these consumers also hold onto their phones for longer than expected and are happy to wait more than two years before feeling the need to upgrade their phones. 


These value packed plans work on the Optus 3G network, which covers 98.5 per cent of the Australian population. The 3G network allows Optus to offer a mobile data amount at competitive price so customers can stay connected with their friends and family through social media, and browse their favourite websites.


These consumers are also at the front end of another trend - the move away from fixed line phones which we expect to evolve further in the coming years.


The no lock-in contract value proposition is resonating with consumers. Telsyte’s Australian Mobile Services Market Study 2016 found among consumers who opted to switch mobile service providers in 2015, two thirds chose no lock-in contracts; an increase of more than 10 per cent from 2014. More than half of the 25 million handheld mobile services in operation at the end of June 2016 are on no lock-in contacts. The opportunity is there to grow market share.


What does value look like for MVNOs?


This is what we mean by value – the creation of laser-focused plans aligned to market needs, while remaining competitive.


The upside for MVNOs is this kind of value proposition cuts through the clutter of a crowded market. It creates access to a new way to compete, which is centred on value and relevance. This is the future of the MVNO market - invention responding to needs of our consumers, not price.


We're proud of this solution. It’s a testament of Optus Wholesale commitment to the MVNO market and how we change and adapt to evolving customer needs.

Tags (2)