.png)
Scroll to top
If you’ve ever stared at your phone bill and thought, “I could run a better telco than this,” you might be right.
For IT professionals, MSPs, or tech entrepreneurs with a nose for opportunity, taking a slice of the Australian mobile market is almost irresistible.
Thanks to improved wholesale access, it’s now possible to launch a lean, SIM-only mobile service without needing a billion-dollar marketing budget or a fleet of stores.
The Australian Mobile Virtual Network Operators (MVNO) segment is growing steadily. Plus, with features like eSIM, pooled data, and 5G now available, there’s real potential to offer something smarter than the majors. Especially if you know how to serve a niche.
Australia’s mobile market is well-established, with three major network operators – Telstra, Optus, and TPG – dominating the landscape.
Yet, SIM-only brands are winning customers away from the major networks. Over 30 active MVNO brands operate in Australia, including household names like Boost Mobile, Amaysim, Aldi Mobile, and Woolworths Everyday Mobile.
ACCC data shows that MVNOs have increased their market share by 3% over the past three years. Meanwhile, Roy Morgan research puts MVNO share as high as 19%, largely fuelled by demand for lower cost plans.
.png)
As mobile data usage continues to rise and eSIM adoption accelerates, opportunities for small, lean mobile brands to enter the market are expanding.
The cost of living is driving many consumers to cut costs where they can. MVNOs can often win on value, with lower-cost operating models and generous inclusions.
Innovations in wholesale access, especially via the Telstra Wholesale mobile network, make it increasingly feasible for niche entrants to carve out a profitable space.
It is important to start up knowing if your growth ambitions and target market are grounded.
Assuming a go-to-market strategy focused on digital acquisition and word-of-mouth, acquiring a few hundred active services within the first year is realistic.
This aligns with performance benchmarks from similar niche MVNO launches in Australia, where early growth is constrained more by marketing reach and onboarding friction than by demand.
Pro tip: Your odds of success increase exponentially if you have an existing customer base that you can market into. Winning existing customers is often 7X cheaper than new customers, and they tend to be loyal, rather than shopping for discounts.
Competing head-to-head with large providers on price alone is a race to the bottom. But there's room for focused, digital-first offerings that address specific pain points.
Success as an MVNO depends on focusing on a specific audience. Avoid the ultra-competitive and margin-thin consumer retail segment. As a new provider, your best bet is to target a niche (ideally one where you have an existing customer base).
Small and Medium-sized Business (SMB) is a particularly promising segment. Chances are, if you provide IT or Managed Services, you already have an SMB customer base. So it is a natural starting point for cross-selling on top of nbn and cloud PBX.
SMBs are rarely satisfied with major networks. Many are unhappy with expensive fleet mobile plans and poor customer service. They are seeking affordable, scalable mobile solutions backed by personal service from someone they can trust.
To succeed in today’s evolving mobile environment, your service must be modern, flexible, and tailored to digital-first users.
The following features are critical to delivering a competitive and user-centric experience:
In 2025 and beyond, 5G is table stakes. Customers increasingly expect 5G speeds even on mid-tier plans. Telstra Wholesale now offers 5G access for MVNOs under certain agreements, and this will be critical for targeting data-heavy users. Without 5G, the perception of your service will lag, especially among high-data consumers.
Physical SIM distribution is costly, slow, and inconvenient. eSIM support allows users to activate instantly. eSIM is ideal for remote provisioning, business use, and travel SIMs. The new SIM can be delivered instantly, via email, and activated by QR code.
As more smartphones and tablets ship eSIM-only (especially iPhones), this feature will move from optional to essential. eSIM onboarding also reduces your operational costs and enables a smoother digital UX.
This is especially attractive to small businesses, families, or groups of users sharing a plan. Pooled data reduces bill shock and increases stickiness.
Instead of per-user limits, pooled plans allow for smarter allocation of usage. Pooled mobile data appeals to business customers managing fleets of mobile devices. It also gives you a competitive advantage over many MVNOs that lack this functionality.
Together, these features allow your brand to position itself as flexible, modern, and business-friendly. These criteria are key to differentiating from both low-cost consumer MVNOs and expensive major-carrier offerings.
Customer billing is often overlooked by first-time operators. Many start up providers assume they can do it manually or use off-the-shelf accounting software. The question is: Do you have the time to personally bill – and follow up - each customer?
A better option is to build on a scalable technology foundation. Launch your mobile services on a platform with integrated mobile billing.
Integrated billing means streamlined operations, real-time charging, improved revenue assurance, and reduced operational costs. Errors are reduced and process automation means you can operate a low-cost business model.
Another key part of running a lean mobile business is reduce the number of support calls you receive – and thereby, reduce your support costs. A customer self-service portal is the perfect way to achieve this.
You don’t need to reinvent the wheel here. Ideally, your chosen business platform will include a white label telecom portal that you can re-brand as your own. Customers will be able to login securely, pay bills, check usage, and order services. All done DIY – without taking up any of your time or revenue.
A turnkey capability like this will keep you competitive with the customer experience offered by major mobile providers
The Australian mobile market remains open to niche, SIM-only providers that can deliver agility and value without chasing mass-market volume.
With realistic expectations, such as targeting a few hundred services in year one, and a focus on must-have capabilities like 5G, eSIM, and pooled data, launching a digital-first mobile brand in 2025 is not only feasible, but strategically sound.
You need a partner that can set up for success. The Telcoinabox platform is a proven operating system for mobile brands, big and small.
As a Telcoinabox customer, you will be able to deliver coverage on the Telstra Wholesale mobile network, and access a competitive range of MVNO features: 5G, Data Pooling, eSIM, and smart device connectivity.
When you’re ready to start a SIM-only mobile brand, come and talk to us.
