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Amaysim fixed broadband will hit TPG Telecom hardest

Sources: Roy Morgan Single Source Australia, March – August 2016, sample n = 615 Australians 14+ with a mobile phone with Amaysim.

Mobile Phone Service Provider Amaysim plans to launch its fixed broadband plans by the end of the year, but the ASX-listed $400 million junior telco will have to compete with the $10 billion discount broadband heavyweight that is TPG, Roy Morgan Research shows.   

Amaysim mobile customers will no doubt soon be getting a text or two to advise them of their provider’s new fixed broadband plans. These existing customers are the obvious initial target market for Amaysim: so how many of these have fixed broadband—and which providers are they currently with?  

26% of Amaysim customers don’t have fixed broadband in the home. While a few of them might consider getting a new fixed broadband service if an offer came through from their friendly mobile provider, it’s likely that most people today who aren’t using fixed broadband at home are probably not interested—which means Amaysim’s first aim will be to convince other providers’ fixed broadband customers to switch.   

Amaysim’s customers are, by definition, far more interested than average in signing up to lower-cost telecommunications services—which is exactly the space dominated by TPG in the fixed broadband market.   Amaysim customers are over 50% more likely than average to have fixed broadband with one of TPG Telecom’s brands, including 11% with TPG itself and 12% with an iiNet Group brand.

Amaysim mobile customers’ fixed broadband providers

Sources: Roy Morgan Single Source Australia, March – August 2016, sample n = 615 Australians 14+ with a mobile phone with Amaysim. * iiNet Group includes iiNet, Internode, Westnet, Adam and TransACT; Vocus Group includes Dodo and iPrimus. Numbers may not add to 100% due to rounding.

19% of Amaysim customers have Telstra fixed broadband (well below the norm of almost one in three Australians 14+), and 13% are with Optus (slightly above the norm).

Internet brands in the Vocus Group—Dodo and iPrimus—provide fixed broadband services to 6% of Amaysim customers, compared with around 4% overall. 

Rounding out the picture, 12% of Amaysim customers either have fixed broadband with a smaller provider or don’t know their provider.

Michele Levine, CEO – Roy Morgan Research, says:

“With Amaysim soon to enter the fixed broadband market, other providers need to know how many of their own internet customers have a mobile phone with Amaysim, how many are thinking of switching, and what they want in a broadband provider. 

“Amaysim mobile users are over 50% more likely than average to have fixed broadband with one of the brands owned by TPG Telecom. All up, around 110,000 of TPG Telecom’s fixed broadband customers could soon be receiving some tempting offers on their Amaysim mobile phone.

“Amaysim is in a good starting position if it does indeed intend to communicate directly with its current mobile customers as a first marketing step. Those who have fixed broadband are already almost 30% more likely than average to intend to switch internet provider in the next year.

“Any new competitor is a concern for TPG and its subsidiary brands. Although they are regularly among the best-performing internet service providers in Roy Morgan’s Customer Satisfaction Awards, their customers are very price-conscious—and many can be swayed by a cheaper offering regardless of their satisfaction. Well over half of TPG’s broadband customers chose the provider for its cheaper rates, while less than one in eight said customer services was a factor.

“Amaysim will need to offer fixed broadband plans that appeal to its current price-conscious mobile customers, and TPG will need to keep a close eye on how its own deals compare.”       

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About Roy Morgan

Roy Morgan is the largest independent Australian research company, with offices throughout Australia, as well as in Indonesia, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan has over 70 years’ experience in collecting objective, independent information on consumers.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

1,000

±3.0

±2.7

±1.9

±1.3

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2