Ann: YNB to restructure MVNO business and pursue 4G mobile-YNB.AX, page-7

Yeah I tend to agree.

Mobile calls and SMS became almost valueless throughout this year with every telco and MVNO moving towards unlimited call + SMS plans. The only differentiator left is data allowance and all players have been increasing that at the same price points, largely driven by Optus and its MVNOs.

Optus seems intent on loading up its network with as much data usage as possible as evidenced by the plans offered by Vivid Wireless (owned by Optus) and Optus' direct. Lately Jeenee (Optus MVNO) also began offering very high quota 3G data only plans.

Alongside them you have Aldi Mobile (Telstra), Boost (Telstra), and Kogan (Vodafone) all offering similar value.

So it's hard to see how a small MVNO can survive. The business model only works if you can get a critical mass of customers.

MeU was reasonably competitive when it began offering services but the last 12 months have seen a massive ramp up in competition. They needed to renegotiate pricing and also advertise as pretty much no one had heard of MeU. The latter is critical as evidenced by the success of Amaysim and the number of customers who still buy direct from Telstra, Optus and Vodafone when better pricing is almost always to be had from the MVNOs.

I'd honestly be happy to be surprised but it's hard to fathom any "value add" service that could genuinely make a MVNO particularly attractive, beyond price.

OVO are trying but it remains to be seen how much of a draw OVO Play is.

Looking at it the other way, it's hard to imagine how owning a MVNO could help Beyond Media. Surely the market for any of their products or services would ideally be bigger than the tens of thousands of customers a MVNO could sign up.