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Small Telcos Benefit From Optus Outage As Customers Flock To Competitors

Small telecommunications companies have emerged as the unexpected winners of the recent Optus communications outage, experiencing record-breaking gains.

Australia’s telecommunications industry is predominantly dominated by major players such as Optus, Telstra, and Vodafone, which share their networks with smaller, less prominent providers. 

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Consequently, when Optus experienced a widespread outage on Wednesday, several smaller providers, including Amaysim, Coles Mobile, and Dodo, were also adversely affected.

However, the outage provided an opportunity for several smaller telcos operating on the Vodafone and Telstra networks, as they reported unprecedented successes. 

Due to the Optus disruption, many customers flocked to these alternative providers, purchasing entry-level prepaid SIM cards to see them through the day or committing to longer-term contracts.

Many of these smaller telcos also offer eSIMs, a technology that doesn’t require a physical SIM card, thus simplifying the process of switching providers for consumers.

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The two sister telcos, More and Tangerine, operating on the Telstra network, witnessed substantial growth in their mobile plans. 

Andrew Branson, CEO of More and Tangerine, said: “Following yesterday’s widespread outage, we have seen a sizeable bump in sales across our mobile plans, with strong numbers signing up to our new eSIM offering.”

“ESIM allows customers to switch seamlessly and quickly without the need to collect a SIM from a store or wait for it to arrive in the mail. In today’s fast-paced world, we know that customers want affordable mobile options on a reliable network,” he said.

Kogan, a prominent eSIM retailer, recorded a remarkable 400 per cent increase in sales compared to their usual figures. 

They reported that it was Kogan Mobile’s highest volume of eSIM sales in a single day this financial year.

Boost Mobile, another telco operating on the Telstra network, also saw a surge in customer sign-ups, with daily sales increasing fivefold and website traffic doubling the norm. 

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