
Much like Telstra has Belong and Optus has amaysim, Aussie Broadband has launched its own budget brand selling more affordable NBN plans.
Dubbed Buddy Telco, the brand is effectively a no-frills take on Aussie Broadband. Buddy' NBN plans are backed by the same core technology as Aussie's and have the same typical evening speeds, but the overall product is a bit simpler.
The biggest difference comes from customer service: Buddy only offers chat-based support through a web browser or its iPhone app. An Android app is coming soon. There's still an Australia-based human team that mans the live chat during business hours, but AI is used to help customers outside of these times.
Aussie Broadband's Chief Strategy Officer Jonathan Prosser told WhistleOut that the live chat team can still call a customer if escalation is needed. Customers just can't call first.
There are a few other differences worth noting. Buddy Telco plans are only available to customers with fixed-line NBN connection types, static IP addresses and CGNAT opt-out aren't currently available (but may be in the future), and Buddy won't sell you a new modem if you need one.
These trade-offs have resulted in plans that are between $10 and $30 per month cheaper than Aussie Broadband's offering. Here are Buddy's plans:
And here are Aussie's for comparison:
Prosser told WhistleOut that Aussie Broadband has been looking at the opportunity for a budget play for around two years, including looking at opportunities for mergers and acquisitions (such as the failed Superloop deal).
"It's effectively been us trying to decide will we be more successful if we grow our own [brand] or if we acquire? Where we've landed is that actually growing it ourselves is going to be incredibly fun and hopefully incredibly successful story for Aussie Broadband," said Prosser.
"The other really important part to 'why now' is we think the time is right to really launch a price-sensitive, cost-led brand, given the cost of living crisis that Australians are going through. We want to provide consumers with a choice that is driven by price, but that's also an exceptional product."
Prosser says that Aussie is expecting around 5% of its customers to churn to Buddy, but that those are customers the company would have potentially lost to other price-driven competitors.
While Buddy and Aussie's plan portfolios are pretty similar right now in terms of speeds on offer, that's set to change due to factors like plan speed upgrades (NBN 100 speeds going to 500Mbps for example) and the launch of the NBN 2000 speed tier. Based on these changes, there could be as many as 13 different speed tiers in market.
"It’s going to be very confusing. It's going to be almost impossible for a brand to compete successfully across all those tiers," said Prosser.
Prosser says Aussie Broadband will be "the destination for that incredible high-speed future," while Buddy will focus on competing in across more traditional speed tiers like NBN 25, NBN 50, and NBN 100.
These are the most popular NBN 50 plans with WhistleOut users this week:
Alex Choros
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