On first glance, it looks like the Australian telecom industry lacks competition and the big 3 – Telstra, Optus and Vodafone – virtually control the entire market. However, MVNOs are increasing their slice of the market as customers search for better deals. Kogan is one of the companies that is cleaning up the customers who are avoiding the big 3.
While not nearly as large as Telstra, Optus or Vodafone, the MVNO has managed to gather a respectable customer base of nearly half a million people. The virtual operator has more than 400,000 happy customers, and is paving the way for other smaller competitors in the industry to make a mark for themselves.
The Secret of Kogan’s Success
Kogan brought in $12 Million in revenues in the financial year 2017-2018 and is close to gaining a 2% market share in Australia. That represents a 233.3 percent growth when compared to previous term’s $3.6 Million. These numbers are expected to grow even further after the recent launch of Kogan services in New Zealand.
One of the primary reasons why Kogan has managed to outdo other smaller telecom operators is that it promises a reliable network, offering services through the Vodafone infrastructure. They are also focused on customer service. But perhaps the primary reason that customers turn to an MVNO is that they offer low prices.
Kogan has its own NBN network which is based on the Vodafone fixed line network. This division has managed to bring in more than $600,000 in the same financial year. Kogan has been trying to expand the product significantly and there is a good chance that these numbers will go higher in the next financial year. Kogan have little capital costs, which puts them in a better position than other telcos when it comes to the NBN network. Since the cost of acquisition is cheap, they pass on the benefits to their customers who are then able to enjoy seamless high speed internet at a fraction of a price when compared to other telcos.
The online e-commerce platform Kogan.com made total revenue of $412.3 Million and recorded a net profit of $14.1 Million. The company believes that these increases in revenue were the result of improving their customer offerings. The benefit of having a presence in multiple sections of the industry has also contributed heavily to their high numbers.
Good Deals Pay Off
Kogan is popular because they offer good value. Its $65.90 per month NBN plan, for instance, offers unlimited internet connectivity for 30 days. The NBN plan is good for 3-4 connected devices to work simultaneously and can allow you to stream HD video content and play online games.
Similarly, the mobile broadband packs also offer some flexibility for their customers. Kogan customers can buy data-only packs without having to pay for additional services like calls and texts. Kogan offers 30GB mobile broadband data at a cost of $49.90 for 30 days. These are perfect for data hungry subscribers who like to view high definition videos off apps like Stan and Netflix.
Kogan and Vodafone Go Overseas
The Kogan/Vodafone partnership has proven beneficial to both companies, and the two are looking to continue the same streak in New Zealand. Vodafone already has close to 3.5 Million customers in the country and Kogan’s competitive plans could help both the companies earn hefty incentives. Vodafone has 98.5% coverage in New Zealand with 4G available to almost 95% of the nation’s population.
Kogan are already trying to deploy their 5G network in partnership with Nokia, and have also completely acquired Farmside, a rural broadband service provider. If Kogan is to leverage the same network in the country, things might go in its favor as they did here in Australia.
Kogan is responsible for their own marketing, branding and customer acquisition while Vodafone provides the network and runs the services. If the company keeps passing on the benefits to the customers, there is the potential to increase their customer base and for people to save significant money on their mobile bills. The more customers they attract, the bigger their influence as a telco. So far, Kogan are showing themselves a force to be reckoned with, and their impressive figures show they are a company to keep an eye on – especially if you’re looking for a good deal.