Aussie Broadband (ASX:ABB) has launched a bid to capture a larger share of the value-end of the consumer broadband market as the cost-of-living crisis continues to bite with a new brand, Buddy Telco.
Buddy Telco will be connected to all 121 NBN points-of-interconnect but provisioned on a self-service basis that limits customer support to web, mobile app and live chat for support options.
Buddy Telco to be EBITDA positive from July 2026
The company said in ASX filings it expected to spend $10 million on marketing and one-off operating costs to establish the brand this financial year. It has set a target take-up rate of 100,000 customers within three years and expects the service to EBITDA positive from July 2026.
Aussie estimates that the size of the value-end of the market in Australia is approximately four million households.
Not a retreat, says Britt
The telco’s group managing director Phil Britt said the new brand was a “diversification”, rather than a retreat from the mainstream market.
“Our strategic investment in Buddy allows the (Aussie Broadband) Group to compete in both the premium and value-led broadband sectors, further diversifying the markets we operate in. We look forward to continuing to change the game through Buddy’s success,” Mr Britt said.
Pricing
Monthly pricing plans for the Buddy service brakes down into four tiers: Standard, Value, Speedy and Zoomy.
Pricing for Standard is $65 per month for a 24/8Mbps NBN 25/10 service while the cost of its top-tier 600/41Mbps NBN 1000/50 plan comes in at $89 per month.