Citing unsustainable wholesale costs – as well as a need to simplify its products, and focus on its mobile and energy services – Amaysim has arranged to sell its customer base to Southern Phone, a competing company currently offering NBN and ADSL, plus satellite and mobile broadband. The $3 million deal is expected to be finalised this month, and means existing Amaysim broadband subscribers will be automatically moved to Southern Phone sometime in November.
Amaysim CEO Peter O’Connell praised the work of the company’s broadband team in offering competitive products, but told shareholders this week that wholesale pricing was a key factor in the decision.
“This transaction will enable the company to simplify its operating structure, defend and grow its core mobile and energy businesses, and invest in its technology platform.” O’Connell said. “We will continue to explore additional products and services that we can offer to our significant mobile subscriber base.”
The decision to exit broadband will have no impact on Amaysim’s mobile phone or energy services, other than freeing up company capital to allocate towards each product. Amaysim’s SIM-only phone plans will continue to be offered as normal, as will its electricity, solar and gas plans.
Although it’s a disappointing announcement if you’re a happy Amaysim broadband customer, it’s great news for the company’s shareholders: yesterday’s confirmation of the decision to exit broadband saw Amaysim’s share price rise by 12%.
Amaysim broadband customers: what to do next
If you’re a current Amaysim broadband customer, you may have already been contacted by the company regarding the changes. Amaysim has confirmed it will be moving all existing home internet customers over to Southern Phone in the next month, and the good news is that your service plan won’t change. You’ll still pay the same monthly fee, have access the same speed tier, and be on the same billing cycle, even after your transfer to Southern Phone is complete.
Southern Phone currently offers a range of NBN, ADSL, and mobile broadband plans at a variety of speed and price points. NBN plans include Basic (NBN 12), Turbo (NBN 50) and Max (NBN 100) speed tiers, with data options from 100GB monthly to up to unlimited. NBN prices begin at $45 per month on the Basic Small plan, which includes 100GB of data and NBN 12 speeds.
Amaysim is predicting there will be no service downtime for migrating internet users, and the telco will be handling 100% of the transfer process on behalf of its customers. Once your broadband service has been switched over, you’ll receive confirmation from Southern Phone that your plan is up and running; if you do decide Southern Phone isn’t for you, you’re be free to cancel your service and move to another provider.