In 2020, Optus bought 100% of Amaysim shares, meaning the MVNO is now more of a subsidiary than a traditional MVNO. But, in November, all Amaysim customers will have full access to Optus’ 5G network. This article will look at how the deal happened and what it means.
About Amaysim.
When it first started in 2010, Amaysim was an MVNO. Today, however, there is a debate around whether it still counts as one, but we’ll get onto that later in the article. MVNO stands for mobile virtual network operator, and they are the middlemen between access to 4G and 5G data and regular Australians. In Australia, three telcos have legal access to the 4G and 5G electromagnetic waves- Vodafone, Optus, and Telstra. MVNOs will bulk buy access to this data and sell it to their customers at a lower price. They are a fantastic option for people who don’t want to pay the full prices set by the big three telcos.
How Amaysim has changed since 2020.
In the summer of 2020, Optus bought 100% of available Amaysim shares for $250 million. Since then, Amaysim hasn’t been a customer of Optus, more of a subsidiary or product. Can we still call them an MVNO? They no longer buy data from Optus. They are Optus with different marketing. Optus sells its data directly to customers. But, because of the deal, Amaysim customers will soon have access to all of Optus’ 5G network.
What is 5G?
Much like 4G, 5G is also part of the electromagnetic spectrum. This spectrum includes radio waves, x-rays, light, and even infrared heat. The main difference between 4G and 5G is that 5G is on a higher frequency, 28-39GHz, making it significantly faster. By the way, Hz (hertz) refers to the width of the electromagnetic wave. The higher the frequency, the wider the wave.
How Amaysim got 5G from Optus
Optus is what is known as a “Tier 1 Telco”. This means two important things. First, they have legal access to 5G waves within a specific spectrum. And secondly, they own the infrastructure used to emit these waves. Because Optus owns Amaysim, Optus has allowed Amaysim customers to use the same frequencies and infrastructure. In the past, Amaysim would have had to buy bulk access and sell it. But now, Optus can give customers direct access via Amaysim.
What you will need if you are an Amaysim customer who wants to use 5G
The first thing you’ll need is to wait. Optus is not giving Amaysim customers access to their 5G network until November 2022. You will also need a 5G compatible device. Because Amaysim doesn’t sell mobile phones, many of their customers reuse their old phones. However, if your current phone is not 5G compatible, even if you have Amaysim, you will only get 4G. We recommend looking online for refurbished phones to find one that is both affordable and 5G ready. However, with the right phone, Amaysim can be a great way to access the 5G network without paying Optus’ high fees.
Potential Criticisms
Although some say that Amaysim using Optus’ 5G network can be great for customers, you could also argue that this may be bad for competition, which is bad for the Australian consumer. If I want 5G internet but do not want to spend money on a Tier 1 Telco, I will have no choice but to opt for Amaysim. This gives them a significant advantage over regular MVNOs, which are not owned by one of the tier 1s. Since my choices are either- to use Amaysim, pay for a tier 1, or make do with 4G, Amaysim are more likely to raise their prices beyond what is reasonable. This lack of competition limits consumer options and makes it easy for Telcos to exploit people for profit.
Conclusion
Amaysim was the first among the MVNOs to receive 4G from Optus many years ago. Since then, Amaysim has become so successful that Optus have bought them outright. Given that Optus’ 5G coverage is now becoming more pronounced around the country and that Amaysim is now effectively a part of Optus, it’s not hard to see why Optus chose them to have the privilege of 5G. We can expect Telstra to provide 5G services to its wholly owned sub-brands – Boost and Belong. Pretty soon, every MVNO will have 5G data speeds.