ISP prices to go up as providers focus on profitability: MyNetFone
- 30 January, 2013 11:54
Consumers will continue to pay more for mobile and wireless services as ISPs will push up prices to increase profitability.
MyNetFone CEO, Rene Sugo, said a lot of providers were trying to put more value in their bundles to justify the price rises.
“The question will be how will consumers take it,” he said.
“Will they stick with what they know, or will they go for basic non-bundled offers from a mainstream provider, in combination with separate value-added providers’ OTT [“over-the-top”] services?”
With several value-added services and new features consistently coming into the market, Sugo expects traditional providers to struggle to integrate them into their plans and billing systems.
“In 2013, we’re really seeing the rise of OTT providers delivering additional functionality,” he said.
A "faster than anticipated" level of market consolidation in the ISP space last year is fuelling the drive to increase monthly charges to consumers.
Sugo said this wasn't surprising.
“It seems that costs to customers have actually gone up, rather than down in the second half of 2012,” he said.
Sugo said this is after two years of significant year-on-year price declines.
“This has now spread to the mobile world, with all three mobile carriers decreasing the value of their plans and bundles, which effectively means putting the ‘per unit’ price up,” he said.
The strategy for MyNetFone coming into 2013 will be to focus on expanding the provider’s SMB services.
Sugo said the company’s goal is to become a “one-stop comms shop” for the Australian SMB market.
“This involves developing additional features for our hosted voice and data communications, such as email, web, domain names, in addition to the phone systems and virtual fax that we currently offer,” he said.
Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.
- Small business technology - This is why your business needs to be in the Cloud
- Rebranded Quadmark revamps its IT solutions with Google Apps
- Vintek partners with IBM to reduce costs and improve system reliability
- Switching to Google Apps brings many cost savings and productivity benefits, says commissioned study by Forrester Consulting
- How do you measure up against top IT service provider benchmarks?
Gold Coast-based Icon expands into US
Optus hits 2.3Gbps throughput in real-world test
Australia lags in e-signature adoption: Adobe
Users refuse to chuck XP as Windows 8 uptake flattens
Android takes 62 per cent share of tablet market in 2013