Introduction

Australian Mobile Virtual Network Operator (MVNO) Amaysim has acquired its competitor OVO Mobile for $15.8 million. As a part of the acquisition, Amaysim also bought Aussie telecom provider OVO Mobile’s customer base of 77,000. This addition pushes Amaysim’s subscriber base to 1.17 million in Australia. 

74,000 of OVO’s customer base acquired are recurring subscribers. The acquisition is a part of Amaysim’s goal to expand its recurring subscriber base, which is now at 820,000.

What does it mean for the existing OVO users?

The transition from OVO to Amaysim should be a seamless process. As both MVNO providers, OVO and Amaysim, operate under the network of Optus, little to no service interruptions or disruption should be faced by the existing customers.

There is one major difference between Amaysim and OVO MVNO plans. Amaysim sells its plans on a 28-day recharge basis and OVO sold its plans on a 30-day recharge basis. The company says that OVO customers will get to keep their 30-day recharge at the time of migration to Amaysim. It may also allow Amaysim customers to swap to 30-day recharges later. OVO customers will keep receiving services of a plan of equal, or better, value for their existing plan. He added that most subscribers will also receive increased inclusions.

Chief Executive of OVO, Matt Jones said that Amaysim has a reputation for delivering excellent customer service and he is confident that all the OVO customers will be supported and well looked after as they join Amaysim’s network.

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MVNO Amaysim’s acquisition trail

The first Australian mobile virtual network operator that Amaysim acquired was Vaya. Its subscriber base of 140,000 was purchased by Amaysim in June 2016 for $70 million. Last year in December, the company also acquired Sydney-based Jeenee Mobile and its 41,700 recurring customer base for $7.8 million.

Chief Executive of Amaysim, Peter O’Connell, said that having successfully implemented the integration of Jeenee Mobile in less than 3 months, they now have the skills and experience to execute an efficient and successful migration. He added that they are looking forward to welcoming OVO customers to the Amaysim family. 

The company said that it would migrate OVO Mobile subscribers on its network supply deal with Optus. This process is expected to take not more than 4 months. 

O’Connell said that he is pleased with how their business has performed in the 2nd half of the financial year despite the challenges the world is facing currently. He is delighted to be able to say that they are on track to achieve their FY2020 goals. The telecom company says that it is expecting to report earnings before interest, taxes, depreciation and amortization (EBITDA) between $33 million to $39 million.

Conclusion

Amaysim’s acquisition of OVO Mobile marks another strategic move in the expansion of its customer base and market reach within the Australian telecom industry. The seamless transition for OVO’s 77,000 customers to Amaysim’s network, backed by Amaysim’s established reputation for excellent customer service, highlights the company’s commitment to a smooth migration process. This acquisition also strengthens Amaysim’s position as a leading Mobile Virtual Network Operator (MVNO) in Australia. As the company continues to expand, its ability to integrate and serve new customers, while maintaining high levels of customer satisfaction, is crucial for future growth.

FAQs

  1. How will the acquisition of OVO Mobile affect existing customers? Existing OVO Mobile customers will experience little to no service disruption during the migration to Amaysim. They will retain their current plans and could also enjoy improved inclusions and services.
  2. What’s the main difference between OVO and Amaysim’s plans? The key difference is in the recharge cycle. OVO offers plans on a 30-day recharge basis, while Amaysim operates on a 28-day cycle. However, OVO customers will continue with the 30-day recharge until migration, with the option to switch to a 28-day recharge later.
  3. How many subscribers does Amaysim have after acquiring OVO? After acquiring OVO Mobile’s 77,000 customers, Amaysim’s subscriber base grows to 1.17 million in Australia.
  4. How long will it take for the OVO customers to be fully migrated to Amaysim’s network? The migration process is expected to take no more than 4 months, and the transition will occur under the network supply deal with Optus.
  5. Has Amaysim made any other acquisitions recently? Yes, Amaysim previously acquired Vaya in 2016, with 140,000 subscribers, and Jeenee Mobile in 2019, adding 41,700 recurring customers to its portfolio.