amaysim will soon be selling NBN plans
amaysim will enter the fixed line broadband business later this year and acquire ISP AusBBS.
amaysim is best known as a low-cost, SIM-only Mobile Virtual Network Operator (MVNO), but it has today announced intentions to launch into the Australian broadband market with a range of affordable fixed line products.
Which doesn’t quite mean that you can line up an amaysim broadband contract just yet, because all amaysim has done is announce to the ASX that it intends to launch broadband products "in order to be ready for the upcoming 'forced churn' event presented by the rollout of the National Broadband Network."
amaysim hasn’t explicity ruled out offering other broadband products as part of its offering, but it’s clear that NBN plans are where it’s heading. It’s also kicking into acquisition mode, announcing that as part of its broadband strategy it’s buying broadband provider AusBBS for a total minimum price of $4 million, comprised of $1 million in cash and $3 million in amaysim shares once integration of the two businesses is complete. In addition, amaysim is also offering $5.45 million as an earn-out payable over the next three years, contingent on certain performance targets, giving a maximum payable amount of $9.45 million in total.
I’m an AusBBS customer. What will this mean to me?
In the very short term, the acquisition of AusBBS by amaysim shouldn’t mean much at all to AusBBS customers in terms of existing contracts, because amaysim can’t modify a contract you’ve entered into with the existing company.
amaysim’s press release talks up amaysim broadband as the ongoing branding strategy, so it’s likely that the AusBBS brand itself will at some point be subsumed into the amaysim empire, at which point we should see the new plans emerge.