Low-cost MVNO Red Bull Mobile has stop accepting orders from new customers and begun informing customers that they will not be able to recharge their service from September 1 2013.
In a statement on their website, Red Bull says it is "taking this opportunity to focus its marketing efforts on existing and future digital assets."
Red Bull entered the Australian phone market less than two years ago, offering aggressively priced plans with unlimited inclusions based on lengths of time, rather than on a set number of calls and messages.
Operating on the Vodafone 3G network, Red Bull also offered low-cost smartphones for sale.
According to EFTM, customers have started to receive SMS messages advising them of the change, but interestingly, no alternatives are being offered. Customers will need to consider their options soon. Check out our guide to number porting if you are concerned about what to do next.
Sign of the times?
EFTM's analysis of this change for Red Bull suggests that times are tough for low-cost MVNOs, and while it is certainly true that margins are tight on plans like those offered by Red Bull Mobile and others, this might not be the whole story.
With a huge global company like Red Bull, an MVNO offering was almost certainly a branding exercise and while there mightn't have been a lot of money made out of the venture, it certainly had a chance to spread its brand. It basically says so in the statement on its website. This was one of many 'marketing efforts' and it is choosing to spend its money elsewhere.
Going forward, there will be other low-cost MVNOs to fill this spot in the market. Bendigo Bank is new to the game, for example, and is offering a pretty similar deal at $39 per month. Plus there is Kogan, Aldi, Woolworths, Allphones -- the list goes on.
What's important is that you realise that it is quick and easy to switch from one telco to another. The prices are right, but if the service is not you can be off a network and on to another within a few hours.
Joseph Hanlon
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