Ann: 2018 first half financial year results - investor briefing, page-327

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theInquisitor

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07/10/18

04:40

Post #: 36025407
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Originally posted by theInquisitor: ↑

Of course they do as AYS' SIM cards are technically issued by Optus (the SIM card identity or "IMSI" is provided by Optus and SIM cards are attached to a core network element called the "Home Location Register" or HLR operated by Optus).
But the days of physical SIM cards are counted as future phones (as already the Apple Watch 3) will feature eSIMs which is a tiny integrated chip provisioned remotley by the provider of your choice over the air within seconds and so replacing physical SIM cards. In the not too distant future you will be able to pick a provider from your phone's menu and within seconds your phone will receive its new virtual SIM card and you can immediately access services.
This technology has been existing for a while but as we have learned from the news of a US DoJ investigation revealed two weeks ago some large carriers have apparently tried to prevent the introduction of the eSIM in fear of increasing competition and customer churn.
While the eSIM will of course make it even easier for customers to join or leave AYS the same technology could also be used to smoothly migrate AYS customers to a potential new MNO partner without the need to physically access phones or replace SIM cards.
So in 2-3 years when most high-ARPU customers will own an eSIM-enabled smartphone the implication of replacing SIM cards in case of switching the MNO partner will be gone for AYS.

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Boost Mobile is calling upon ACCC to force the introduction of the eSIM in Australia:
https://www.copyright link/technology/why-telstra-optus-and-vodafone-are-blocking-the-iphones-best-feature-20181004-h1697k

As indicated in my above post from May this would stimulate competition and probably trigger a migration wave among MNO customers towards the cheaper MVNOs besides facilitating switching networks for any MVNO including AYS. AYS would definitely benefit from any action by ACCC in favour of the eSIM.

AYS Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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