ISP prices to go up as providers focus on profitability: MyNetFone

Telecommunications provider warns of looming price increases for ISP services

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.

SMB focus

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.

FILL IN THE SURVEY - AND YOU COULD BE A WINNER: ARN wants to hear from YOU. Tell us how you run a successful business and you could win an adrenaline-fuelled adventure of your choice. COMPLETE THE ARN SURVEY.

Tags NetworkingmobilityISPmobile solutionsmynetfone

More about IDGIDG CommunicationsIDG CommunicationsIDG CommunicationsMyNetFone

Comments

Comments are now closed

 

Latest News

02:43PM
Mobile apps could be abused to make expensive phone calls
02:43PM
BigAir reaps financial rewards from UC, Cloud, managed services investments
01:52PM
Next Byte scotches strong Vita Group profit
01:10PM
St George to support biometric banking in iOS 8
More News
25 Aug
CA IT Leaders Forum ’14 Brisbane
26 Aug
CA Expo ’14 Sydney
26 Aug
Integrate 2014 Exhibition & Conference
27 Aug
BizTalk Summit 2014, Australia
View all events