Aussie Broadband has launched a new digital-first challenger telco aimed at disrupting the NBN market in Australia.
Launching on Tuesday, Buddy Telco users will be able to manage their connections, upgrade, outages, and usage, through the telco’s app, website and live chat, enabling a “simple and seamless digital-first experience”.
Services will be offered on a self-service basis only, using automation and machine learning for network and technical support.
It is described to provide an efficient and straightforward service that gives customers everything they need, and nothing they don’t.
“Aussie is thrilled to launch Buddy Telco, a truly digital-first offering that provides value and ease of use to the consumer,” said Phillip Britt, Aussie Broadband group managing director.
“Our aim is to really simplify the NBN experience by removing as many barriers as possible.”
Characterised by the official mascot, Buddy the dog, Buddy Telco’s values of customer empowerment, flexibility and self-service are emphasised.
“Buddy the dog is the perfect sidekick: they’re reliable, dependable, and they have your back when you need it, which is everything that Buddy Telco is about,” said Aussie Broadband’s general manager of marketing, Rebecca Rizzo.
Buddy Telco will run off the same automation and infrastructure as the Aussie Broadband network, with NBN 25, 50, 10, and 1000 plans all available for under $100 a month. According to Aussie Broadband’s ASX announcement, Buddy’s plan pricing will be highly competitive, supported by the self-serve model, lower cost to serve, and the benefits of automation and AI. It is expected that Buddy will maintain an EBITDA [earnings before interest, taxes, depreciation and amortisation] contribution margin percentage similar to Aussie’s premium retail offer.
Buddy marketing and brand examples
Aussie Broadband expects to invest approximately $10 million in FY25 to support marketing, brand and set up/one-off related operating expenditure to support the Buddy launch, according to the announcement. It is expected that Buddy will provide positive EBITDA contribution from FY27 onwards.
“Our strategic investment in Buddy allows the Group to compete in both the premium and value-led broadband sectors, further diversifying the markets we operate in,” Britt continued.
“We look forward to continuing to ‘Change The Game’ through Buddy’s success.”
