Amaysim today announced that it has renewed its deal with Optus to provide coverage over that network, but with a welcome change. As of ‘around Easter’ 2015, Amaysim will function over the Optus 4G network, instead of only 3G.
This 4G access will cover Optus’ pre-existing network, as well as the new low-frequency 700MHz band that has just gone live in some parts of Australia, and is set to be significantly expanded in 2015.
So far, Amaysim has proven hugely popular in the Australian market, despite its 3G limitations. This mostly thanks to its generous data offerings and low prices. For example, the Amaysim UNLIMITED plan, with unlimited talk and text, as well as 5GB of data, is just $44.90 per month. There is no lock-in contract, although the first month will cost you an extra $20.
For essentially the same plan – unlimited talk & text with 5GB of data and no lock-in contract – Optus will run you a bill of $60. The difference in coverage? Optus has 4G, Amaysim doesn’t.
Amaysim vs the rest
Like many smaller modern telcos, Amaysim is a Mobile Virtual Network Operator (MVNO). These MVNOs purchase access to a pre-existing network (Telstra, Optus, Vodafone) in bulk for a low price and pass the savings on to the customer.
Most Optus MVNOs have been 4G for some time now, except Amaysim. Despite this, it has continued to be among the most popular MVNOs in Australia.
There’s a simple reason for this: even against the other MVNOs, Amaysim offers value over speed.
Will Amaysim continue to be a price leader?
That’s the big question. Right now we don’t know if Amaysim will have to raise its prices in order to provide 4G access.
It would make sense for Optus to charge more for access to 4G. Right now, Amaysim is carried by an older network that Optus is not interested in advertising. In fact, the aim for Australias #2 telco is to get as many of its users off of 3G and on to 4G as possible. As a result, the old 3G networks in metro areas are less congested than they have been in years. There’s plenty of room for Amaysim to fit in its over 1 million customers without adding any strain.
4G, on the other hand, is Optus’ pride and joy; its cash cow. It’s a new network already dealing with a huge number of customers. Dropping a cool six-figures additional users on board is no small deal. At the end of the day it’s Optus that has to carry the load; not Amaysim.
Source: amaysim
Alex Angove-Plumb
Digital Content Editor
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