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phamp

92 Posts.

06/11/17

23:32

Post #: 28554516
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Originally posted by jord@n ↑

It is an acquisition strategy, nothing more. I'm willing to bet a high percentage of signups will continue beyond the introductory period.

The companies strategy is to leverage their customers to offer their other services (internet, energy, devices etc). The discount is worth it to acquire the customer (long-term) and make a good impression, then sell them on other services as well.

Edit: My apologies, it was another poster who kept posting about the discounting offered on Groupon etc.

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I agree I believe that's what the company strategy is. Also, keep in mind that VAYA lease with Optus will run out soon in Feb 2018 from memory (correct me if I'm wrong) - so COGS will go down. So perhaps them dropping down the price may not severely impact Net Profit?

Cheers

AYS Price at posting: $2.09 Sentiment: Hold Disclosure: Held
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0 Great analysis

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