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Telstra, Optus And Vodafone TPG, Facing Bleak Retail Future

Boost Mobile Roaming

Carriers in Australia are facing a bleak future with Telstra, Vodafone TPG and Optus facing the real possibility that their future is not about retail but wholesaling communication services claims one of world’s leading telecommunication entrepreneurs.

20 years ago, Peter Adderton created Boost Mobile today the Boost brand is a household name in both Australia and the USA.

 Peter Adderton, founder of Boost Mobile, speaks during an interview with CNBC on the floor at the New York Stock Exchange

Adderton who is now based in Orange County in the USA commands the lions share of the Australian prepaid market and to get there he “took risks” that most Companies would today deem as crazy he said.

His formula for success is that Boost and their staff are “Good Story Tellers” and that they don’t see themselves as a telco.

During the past 20 years he has invested in surfing and motor sport and some of the worlds leading events.

Recently he insisted that female surfers got the same prize money as the males in the Boost Mobile Pro.

He claims that Telstra Optus and Vodafone TPG shareholders should be pressuring these Companies to change.

In Australia JB Hi Fi who now has a $1.2 Billion share of the Australian smartphone market and Boost Mobile with up to 70% of the prepaid market are stripping retail share away from carriers who Adderton claims are struggling to compete.

“They have not changed their approach; they are not disruptive they are simply slaves to shareholders and EBITDA margins”.

“There idea of a change in direction is to change their logo” he said.

He went on to claim that Companies such as Optus and Telstra were risk adverse”.

“They are not prepared to take risks; they have become nothing Companies”.

“They have become political beasts, slow to move” he added.

As for the people in these organisations he claims that most don’t know what they need to do.

He said that 5G was going nowhere and that Boost Mobile is close to rolling out a new experience for consumers that carriers in the USA have described as “ingenious”.

Although the huge majority of phones don’t support eSIM, it’s only a matter of time before many smartphones adopt electronic eSIM cards said Adderton who claims that Australian carriers are reluctant to support eSIM as it’s “too disruptive” for them.

The first completely eSIM-only phone was the Motorola Razr flip-phone.

However, the Galaxy Z Flip foldable does have an eSIM in addition to a standard SIM slot.

The use of eSIM brings a number of advantages to device manufacturers and networks one being that consumers can switch networks easily.

eSIM empower consumers with the freedom to move between mobile phone carriers much more easily and this is what the Australian carriers fear.

They make is easier and cheaper to choose the SIM Only or prepaid plans which best suit them.

Adderton said that carriers face losing their retail business and what they will be left with is infrastructure management and expensive capital costs with the revenue recovered from wholesale partners.

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