Optus plan to keep it simple
The company posted a $167 million quarterly profit, an increase of 7.7 per cent compared with the same period last year, despite a 5.3 per cent slump in revenue.
Optus chief executive Kevin Russell, who is under pressure to improve the company's performance, said tackling customer concern about "bill shock" was at the centre of his strategy.
"I personally see bill shock as a massive problem that is building for Australian consumers - that is because 4G usage is growing and data allowances are coming down, he said. "More customers are breaking through their allowances."
Optus introduced MyPlan in July to tackle this issue, which moves customers to a higher-priced plan costing $10 more a month if they go over their data allowances.
Mr Russell said he wanted to "put in place a plan that encourages or allows customers to use their smartphones as much as they want."
Optus' mobile division, which accounts for more than 50 per cent of the company's revenue, had next to zero growth in subscriber numbers in the past 12 months, compared with Telstra, which picked up more than 1.2 million mobile customers, capturing nearly 50 per cent of the market.
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Optus posted a $167 million quarterly profit, up 7.7% compared with the same period last year, despite reporting a 5.3% slump in revenue.
Optus chief executive Kevin Russell, who is under pressure to improve the company’s performance, has focused the strategy on tackling customer concern about "bill shock" and simplifying pricing to lift the mobile division.
"Bill shock" refers to customers unexpectedly exceeding their data allowances and facing higher charges. Optus says it’s a growing problem as 4G usage increases while data allowances fall, leading more customers to break through their allowances.
Optus introduced MyPlan in July to address bill shock. Under MyPlan, customers who go over their data allowances are moved to a higher-priced plan that costs $10 more a month.
Optus's mobile division accounts for more than 50% of the company's revenue, making its performance critical to the business.
Optus had next-to-zero growth in mobile subscriber numbers over the past 12 months, while Telstra added more than 1.2 million mobile customers and captured nearly 50% of the market.
Optus hopes a simplified pricing strategy, exemplified by MyPlan and measures to reduce bill shock, will encourage customers to use more data and improve mobile division performance in a declining market.
Key challenges include a declining market, falling revenue despite higher profit, rising 4G data usage that leads to bill shock, and weak subscriber growth compared with competitors like Telstra.
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