Silicon Valley backed MVNO launches in Australia \ NBN’s new pricing \ AI in telco \ Consolidation in food delivery apps



 



In this week’s edition, we look at NBN’s new pricing proposals, the launch of a new digital only MVNO in Australia, AI use cases in telco, and the potential for consolidation in food delivery apps.

CHART OF THE WEEK

MVNO subscriber market shares (handset only)



Source: VENTURE INSIGHTS

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Silicon Valley backed MVNO launches in Australia

Subscriber market shares by MVNO



Source: VENTURE INSIGHTS

Singapore based digital only MVNO Circles.Life has launched in Australia and is offering the first four months of usage for free for users that sign up before 30th September 2019. The plan on offer is worth $28 per month which includes 20GB of data and unlimited local calls and texts. The MVNO has signed up with Optus for access to its 4G network. Founded in 2016 the Singapore-based telco bills itself as “one of the world’s first digital telcos”. Circles.Life’s main selling point is Circles-X platform, a propriety “telco-in-the-cloud” technology stack that allows the company to automate the bulk of its systems. The system also allows Circles.Life to quickly spin up new products or make changes to its existing portfolio. This launch is in line with Venture Insights’ view on differentiation being the key driver of growth in the MVNO market. To learn more about the MVNO market in Australia, click through to read our report.

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NBN’s new pricing



Source: Zdnet, NBN

The NBN in June launched an industry wide consultation process on its wholesale pricing structure after considerable amount of pushback from RSPs on the viability of the existing pricing mechanism. In response, the NBN has proposed new pricing which would make the entry level plans more affordable and improve speeds/CVC capacity on the higher speed plans. The proposed changes are expected to be implemented gradually over the next 2 years as the NBN reaches the end of its rollout. Industry response has been mixed with Telstra and Vocus expressing their disappointment with the proposed changes while Optus and Vodafone have indicated that the changes are a step in a right direction. In addition, these changes could help in assuaging the concerns on fixed broadband affordability for low income households that were raised by the ACCC and in Infrastructure Australia’s (IA) 2019 Audit Report. For a more detailed look at IA’s key takeaways for the telco sector, read our report. 

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AI in telco 



AI Adoption is reaching mainstream in large global telcos as it shows to have the highest ROI use cases across all industries. The three main areas of adoption are network applications, customer service improvements, and sales and retention. A holistic approach beyond technology and skills is required to ensure success of AI applications across the business. Developing sound business cases with measurable outcomes and building an optimal team structure are critical to the success of any AI program. For a more detailed look at specific use cases for AI in telco, click through to read our report. 

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Consolidation in food delivery apps

Australian online food ordering market landscape



Source: VENTURE INSIGHTS ANALYSIS

Australia’s pre-order market, serviced by players like UberEats, Deliveroo and MenuLog, has grown quickly and is highly competitive. We anticipate the market will experience strong, ongoing growth, market concentration via consolidation as well as horizontal integration. Over the next three years we anticipate that the key players will seek to expand both organically and via acquisition, which will increase the scale and scope of the remaining players. This is likely to be a global phenomenon, though it’s recognised that Australia is an attractive market given its early adoption status. Click through to read our report on the food delivery apps market in Australia. 

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