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Introduction

This case study is a profile of Australia's largest MVNO player, Amaysim. The piece captures Amaysim's success in the Aussie MVNO market and touches upon the business strategies that enable it to operate using a lean model and grow margins.

Highlights

  • Within five years of launch Amaysim has signed up 718,000 users, captured 2.2% market share, and appears to be on a revenue growth path. Amaysim focuses on its proprietary IT platform to support a low-cost, online-led business model for operational leverage and scalability benefits.
  • A lucrative wholesale agreement with Optus has helped Amaysimset low retail prices while maintaining healthy wholesale margins. While Amaysim is currently facing tariff pressures with arrival of new MVNOs and MNOs reducing their SIM-only pricing, Ovum believes it is protected due to its broader audience reach and lean online-led business model.

Features and Benefits

  • Examines the importance of Amaysim's wholesale deal with Optus to maintaining long-term growth, business stability, and competitive pricing.
  • Discusses how a strong IT infrastructure contributes to Amaysim's cost efficiency and margins in the long term
  • Identifies how the price review mechanism in Amaysim's wholesale network agreement enables the MVNO to renegotiate price terms in response to market and competitive challenges

Key questions answered

  • What is Amaysim's business model? How has it succeeded in converting its EBITDA into positive territory?
  • How has its wholesale deal with Optus contributed to Amaysim's success in terms of setting competitive retail pricing?
  • What is Amaysim's product and distribution strategy?
  • How does Amaysim use its proprietary IT platform to provide enhanced customer support?
  • Who is Amaysim's target audience?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations
  • SWOT

Strategic analysis

  • Business model
  • Infrastructure strategy
  • Product strategy
  • Pricing strategy
  • Sales and marketing strategy
  • Device strategy

Appendix

  • Further reading
  • Author

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