Australian telecommunications company, Amaysim plans to extend its dual-brand strategy from mobile into a National Broadband Network (NBN) retail service provider at the beginning of 2017.
The low-cost mobile services provider entered the broadband market with a deal to acquire Australian Broadband Services (AusBBS) for $4 million, earlier this year. It resulted in Amaysim acquiring 100 percent of AusBBS, which owns a platform for ADSL and national broadband network provisioning. Amaysim has paid $1 million in shares and will pay a further $1.5 million of shares one year from the completion of the transaction, subject to certain conditions.
Speaking at the company’s annual general meeting, CEO Julian Ogrin said the company’s acquisition of AusBBS is progressing well, allowing it to take advantage of what he called the “once-in-a-generation forced churn event” that is the NBN. He added,
Expanding further into Australian households is a key priority for us, and our move into broadband provides the company with an opportunity to address a new consumer segment and capture a greater share of household wallet. Progress is on track to combine the strengths of the AusBBS technology stack with our go-to-market strategy, digital marketing expertise, and subscriber experience overlay. We expect to launch closed trials of the Amaysim broadband offering before Christmas, with a market launch early in the new calendar year.
Ogrin outlined Amaysim’s two-part strategy for broadband: Cross-selling broadband to its “highly engaged” mobile customer base; and using its “data-driven digital marketing expertise to tactically target the broader market.”
Most importantly, Ogrin said, Amaysim will extend to fixed-line broadband its dual-brand strategy that has been the cornerstone of its business since its AU$70 million acquisition of Vaya in January.
The chief executive added that Amaysim plans to assist customers during their broadband switchover, including in completing tasks like finding electricians.