Virtual mobile market heats up with Rocket’s debut
Another mobile virtual network operator (MVNO) brand is in the mix in the telcoms sector with Rocket Mobile piggybacking on One’s mobile network to “bring down costs” for New Zealand mobile users.
Rocket Mobile is the operation formerly known as MyRepublic, the Singpaore-headquartered company that sells broadband and services in several Asia Pacific markets. MyRepublic did a MVNO deal with One (then Vodafone) last year launching services under the MyRepublic brand. They didn't appear to make much headway and the rebrand seems designed to position Rocket Mobile as a nimble challenger in the mobile sector.
Rocket Mobile’s head of product and marketing, James Whittome, says there is “huge potential” for more MVNOs to operate in New Zealand.
Rocket’s debut follows the arrival of Mighty Mobile, a virtual operator from e-commerce operator Mighty Ape, which is also based on the one network. Mighty Ape is in turn owned by Australian company Kogan, which was early into the New Zealand MVNO market under the Kogan brand through a deal with Vodafone.
But MVNO customer numbers have been slow to grow, accounting for a low single-digit share of the market here. That’s in contrast to other markets, including the UK, where 77 MVNOs had 16% of the market as of 2018.
Taking on the big three
The recent MVNO arrivals in New Zealand are targeting the key complaints customers have with the existing big three - Spark, One, and 2degrees, including a lack of attractive options for unlimited data plans and the requirement to buy a bundle to get the best deal.
“Instead of sucking people in with short-term half-price signup offers, and bundle prices you can only access if you buy other services like power, we have everyday low prices,” Whittome says.
Rocket Mobile is also “calling out other mobile providers who tack on card fees, MMS overage and voicemail charges, or add in extra costs with a 28-day billing cycle which effectively creates an extra month of fees each year”.
Rocket’s plans will be prepaid via credit or debit card. So how do the plans compare to what’s already on offer?
Unlimited data, with speed limits
The Rocket Starter through to Rocket max plans take a similar approach to Mighty Mobile, offering unlimited data, texts and phone calls to NZ and Australian numbers but with the data transfer speed throttled depending on the plan tier. Rocket Mobile has limitations on using data for mobile hotspots ie: connecting other devices to access the internet whereas Might Mobile has “hotspot included (at no extra cost)”.
After a Rocket Mobile hotspot data allocation has been exhausted, "speeds will be reduced to a maximum of 1.2Mbps", the MVNO points out. Mighty Mobile offers roughly a 10% discount when subscribers pay for a year upfront.
Can MVNOs make inroads?
While existing MVNOs tend to have a low profile due to their lack of marketing muscle compared to the incumbent mobile operators, Kogan, Mighty Mobile, and Rocket Mobile can all leverage existing customer bases through direct marketing in an effort to appeal to value-conscious mobile users.
With inflation still high and household budgets under pressure, that may well hold appeal for a sizeable section of the mobile market.