AGL Launch A New Australian Telco

AGL Launch A New Australian Telco

AGL now offer mobile plans

There’s a new Mobile Virtual Network Operator (MVNO) in town. AGL, the energy company, will now offer mobile services using the Optus network. This comes after several MVNOs have sold out to other telcos, creating market space for new entrants.

AGL has been getting closer to offering mobile plans for a while now. They have made attempts to acquire MVNOs in the past, and even acquired Southern Phone in 2019.

But with the MVNO market being quite shakey for smaller mobile companies lately, will AGL survive? We’ll look into some recent acquisitions in the MVNO market, and what the new AGL mobile plans look like.

MVNO giants have exited the market

The past couple of years have seen some of the major MVNOs being acquired by other telcos. The latest (and one of the most significant) was Optus’ acquisition of Amaysim for $250mn.

Amaysim held the largest share of the MVNO market at the time of acquisition, but they still sold, showing that the MVNO market might be less promising as it seems. Other Optus MVNOs like OVO and Jeenee have folded recently as well, reiterating the point that the market is getting harder to navigate, especially for those reselling the Optus network.

So why would AGL enter the MVNO market on the Optus network right now when others are folding? Perhaps the company sees an opportunity – after all, with major MVNOs exiting, the competition may be less.

However, larger telcos like Optus are not only buying out MVNOs outright, they are also launching their own MVNOs. Optus recently launched Gomo Mobile, Vodafone recently launched Felix Mobile, and Telstra has had Belong for a while. With these major telcos staking their claims in the MVNO market, it’s also possible that the opportunity AGL sees might not be as great as it seems.

AGL mobile plans

The MVNO market is all about competition. These smaller mobile companies purchase the larger telcos’ networks and resell to consumers. With their smaller overhead, MVNOs keep their mobile plans simple and cheap, creating a very competitive environment.

For AGL to compete well, the company will have to offer some great mobile plans. So far, their lineup includes three month-to-month SIM only mobile plans on the Optus 3G and 4G network, ranging from $20 to $45:

  • Small Mobile SIM Plan inclusions
    Unlimited national standard talk and text, along with 5GB of data.
  • Medium Mobile SIM Plan inclusions
    Unlimited national standard talk and text, along with 20GB of data and $50 international credits.
  • Large Mobile SIM Plan inclusions
    Unlimited national standard talk and text, along with 50GB of data and $300 international credits.

AGL handles excess data a bit differently. The company offers the industry standard $10 per GB if you exhaust your plan data. However, if you exhaust that extra data, your data usage will be suspended until the next billing cycle. This can be seen as an inconvenience to some, while others might view it as a great way to cap your data usage and avoid spending too much on excess data.

Other perks offered by AGL

AGL is primarily an energy company. As a result, the company encourages customers to bundle their services, including mobile plans. In this case, AGL will offer a $5 discount per month for adding your AGL mobile plan to your energy plan. And with the company now selling NBN plans as well, you will be able to bundle with that too.

AGL will launch an app to enable customers access their AGL accounts through one portal. If you are an AGL energy customer, you will be able to add a mobile plan and NBN plan and control them all on one app.

Final words – AGL has been looking into mobile services for a while

AGL’s new MVNO doesn’t come as a surprise. The company has had mobile aspirations for a while. Back in 2019, AGL tried to purchase Vocus for $3bn but later backed out. AGL then acquired Southern Phone at the end of that year.

But with a fresh MVNO of their own, will AGL be able to compete well in a market where major MVNOs have folded and the major telcos have entered?

AGL mobile plans seem cheap and competitive enough, but there are other MVNOs out there with similar or even cheaper offers at their medium to large plan range, such as Moose Mobile and Dodo. But AGL has a great offer in its small plan when it comes to the included 5GB of data.

Where AGL might loose customers is in their lineup itself – they only offer postpaid plans. Customers in search of prepaid plans will likely go elsewhere, even if they are already AGL energy customers. Also, is only reselling the Optus 3G and 4G networks. With the Optus 5G network now available to MVNOs, AGL will have to compete with MVNOs that offer 5G access.

Neil Aitken

Having worked in 3 countries for 4 telcos on both voice and data products, Neil is in a position to give you the inside track. Get beyond the marketing messages to the best plan for you.