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Optus-Amaysim Merger Will Shrink Telco Industry, Report Claims

Optus’ acquisition of fellow Aussie telco Amaysim will shrink the telco industry and contribute to the continued decline of mobile virtual network operators (MVNOs) in the country, a research report claims.

According to research done by Venture Insights, the market share of MVNOs in Australia will shrink from 15% down to 6% by June 2023 and the Optus-Amaysim merger may weaken the share even further.

David Kennedy, Venture head of research, described the $250 millon deal as a “game changer” for the industry, according to CRN.

“With the ACCC reported not to oppose the acquisition, Optus will absorb about a third of existing MVNO customers,” Kennedy said.

“The mobile network operators (MNOs) are grabbing the industry steering wheel off the MVNOs and are setting themselves up to dominate the low-price end of the market.”

He added: “We had previously forecast rising MVNO market share. However, we now forecast a decline in MVNO market share to 6 percent by June 2023. This is partly due to the removal of Amaysim from the MVNO column, but also stronger competition from MNO sub-brands.”

Amaysim is a Mobile Virtual Network Operator that resells mobile phone and data plans on the Optus network and it is the fourth-largest mobile provider in Australia with some 1.19 million subscribers.

The budget telco offers customers cheap internet and voice calls using Optus’ 4G Plus network across Australia under an agreement that was due to expire in June 2022.

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