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9c (3k image)austria is known to be one of the most competitive markets for mobile communication in europe, at least from a tariff perspective. meanwhile minutes (to all networks) with prepaid phones have hit rock-bottom:

10 €cents at telering, 9 cents at the new discount-market-based service provider yesss, and next tuesday my former employer uboot is expected to announce hot schwarzfunk tariffs, being the country’s eighth provider. just to compare: a prepaid minute offnet in germany costs at least 35c (at tchibo and schwarzfunk) and most cases around 50c.

prices are well below costs, as interconnection fees to my knowledge still cost up to 19.6 cents (to hutchison’s drei) or 13.8 (to telering). now what does keep telering and drei from buying all yesss-sim-cards they can get hold of, buy truckloads of prepaid minutes for 7.5c each (9c minus taxes), put them in their servers, call their own networks and earn up to 12c per minute through ICF? (and – as a positive side effect – ruin their discount-competitors. so there’d even be a business case for mobilkom or t-mobile.)

and it’s all over town: yesss is supposed to go bust in a matter of weeks, according to schedule. with a little help from their competition, i would assume.

update may 4th: schwarzfunk tariffs have now been announced, they’ll be reseller of telering’s twist15. a tough job, given the low-priced competition.


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