The long running and intense competition between rival telco companies is set to reach a new level with the introduction of phone deals for just 10 cents a month.
TPG Telecom and Moose Mobile are introducing new business models that could shift the face of mobile phone deals in Australia, The Advertiser reported.
Moose Mobile, that uses the Optus network, has rolled out an offer of 10 cents a month as an introductory deal for new customers.
The plan is only available to those that bring their current mobile phone over to the network and only use minimal amounts of data.
The long running and intense competition between rival telco companies is set to reach a new level with the introduction of phone deals for just ten cents a month (stock image)
The two deals on offer for those customers who fit the profile are then $9 a month with 1GB of data or the $14 a month deal with 1.5GB of data.
WhistleOut’s spokesman Kenny McGilvary spoke with The Advertiser and said the new offers could be one of the cheapest to ever hit Australian shores.
‘It’s certainly difficult to get much cheaper,’ he said.
‘We’re now seeing a few carriers begin to follow each other with this style of promotion, which is making the marketplace even more competitive, which is a positive for consumers.’
Since introducing the new deal Moose Mobile CEO Dean Lewin said the telco had an influx of new customers, which was a positive sign.
‘It’s a price where customer simply feels they have nothing to loose by going with a small telco, if we don’t deliver in the first 30 days they can cancel without penalty and it costs them 10 cents he said.
TPG Telecom, who recently took over iiNet, made it the second largest ISP in the country and now the company will invest a further $1.8billion to build its own mobile network.
The plan is only available to who bring their current mobile phone over to the network and only use minimal amounts of data
The acquisition also increased TPG’s market share by 27 per cent, which makes it also makes it the second biggest broadband provider in Australia.
Telstra is still the leader in market share with 41 per cent, but Optus now trails behind TPG with only 14 per cent.
The moves being made by the two smaller telco companies is putting external pressure on industry giants Optus, Telstra and Vodafone.
However whispers from within the industry also point towards a possible merger between TPG and Vodafone Hutchison, which would create even more pressure on the telco giants by creating greater competition.
ACCC chairman Rod Sims said the TPG acquisition of iiNet has raised some slight concerns but the deal was still accepted.
‘The ACCC has noted the growing consolidation in what will now become a relatively concentrated broadband market’he said.
‘Any future merger between two of the remaining four large suppliers of fixed broadband is likely to raise serious competition concerns.’