Whilst not providing an exact date, Telstra has revealed it will be expanding its budget internet service provider brand ‘Belong’, into the low-cost mobile market sometime this year.
Historically, Telstra has not heavily invested in the Belong brand, however, the expansion is clearly a strategic move against Optus (Virgin), Vodafone and the imminent arrival of TPG Telecom into the budget mobile sector too.
Telstra Chief Executive Officer Andy Penn made the announcement stating:
“Building on the success of Belong Fixed in attracting new fixed broadband customers with simple no frills offers, we will be launching Belong Mobile in the price sensitive segment of the mobile market”.
Mr Penn also acknowledged an intention for Telstra to be “very strongly positioned to respond” to new entrants.
Launching Belong Mobile will place Telstra in a similar position to Optus, who run Virgin Mobile as a budget brand for its own mobile network.
Mr Penn estimates that by 2020, the low-cost mobile market sector could represent 25-30% of the total mobile market.
Whilst Telstra has not provided specifics on the exact types of products Belong Mobile will offer, the company does state it is excited by the opportunities available for Belong Mobile and believes it will be as successful as Belong in the fixed broadband market.
