The small-time telco sparking a big-time price war
Telco competition has never been so fierce, and there are a bunch of new players in the mix, offering some of the best value deals around.
While Optus looks to axe hundreds of jobs, and Vodafone and TPG look to get hitched, a new player in the market is ready to undercut them all.
Start-up telco Hive Mobile will enter the market this week, and is promising to pose some of the stiffest competition the industry has ever seen.
“We’re launching with the cheapest unlimited plan available nation-wide for just $9.80 per month,” Hive Mobile CEO Scott Edwards told Nine News.
Hive will piggyback off the Optus 4G network, giving customers peace of mind about the cheaper, unknown provider experiencing dropouts.
“One gig of data, unlimited calls and texts under $10 a month the value is amazing,” Simon Downes Canstar Blue said.
“When a customer signs up they get to use the same network as they’d use if they were connected to the Optus network.”
Whilst the margin is only small, with Hive coming in about 10 cents cheaper than other plans, the company is promising to undercut any other offers. There is no doubt this will force the other Telcos to react.
It’s expected to kick off a price war, putting downward pressure on other smaller providers, along with bigger names, who will all fight to be the cheapest.
“There are very few household bills that get cheaper and cheaper, or the value gets better and better but when it comes to phone plans that’s what we’re seeing,” Downes said.
But be warned, Hive will be making its money in excess data charges.
“Be aware that excess data charges apply, so you really need to understand your data usage because if you exceed your data usage for the plan, that’s going to cost you extra an extra 10 or 15 dollars a month,” Downes warned.