Pricing shows how operators might adapt to lockdowns
Swiss mobile operator Salt has launched a budget mobile service GoMo. It promoted the cheap alternative with a temporary offer of unlimited local calls and data for less than CH10 francs per month. Salt hailed the launch of GoMo as the most important event in the Swiss telecom space in 2021, according to finance news site Moneyland. It proclaimed the new offering as the most digitised Swiss mobile service with the most cutting-edge offers, according to analyst Ralf Bayeler.
Self service minimises costs
Costs are minimised as every part of customer service is automated as much as possible. The plan is offered exclusively on the operator’s website. Enrolment and accounts are also managed online and customer service is provided by chat. GoMo is the second budget brand from Salt, following in the wake of Das Abo.
The flat fee plan includes unlimited local data within Switzerland and unlimited local calls and SMS messages. The introductory price is 9.95 francs per month. This price applies to the first 50,000 customers to sign up for the plan.
Other mobile brands may follow suit
However Salt is accused of a lack of communication over the plan’s standard price and even the financial analyst struggled to get details. “The limit on how many people can get the plan at the promotional price is very large, so the current introductory price should apply for some time,” said Beyeler.
GoMo is an interesting trend setter as it’s a brand built for local use. This might be useful to subscribers who are unlikely to travel during the pandemic. If you do not use your phone while traveling abroad, the GoMo offer is very attractive, said Beyeler. “It is only a matter of time before other budget brands, such as Swisscom subsidiary Wingo and Sunrise subsidiaries Yallo and Lebara, are forced to follow suit,” said Beyeler.
Swiss market consolidated in numbers
Salt, formerly Orange Communications, was bought by French entrepreneur Xavier Niel from buyout firm Apax in 2014 for 2.8 billion Swiss francs. The telecoms entrepreneur benefited from dividend payments and streamlined the business through deals like Salt’s sale of its telecoms towers to Cellnex.
Switzerland’s telecommunications sector has consolidated in recent years and Liberty Global’s 6.8 billion Swiss franc takeover of Sunrise Communications closed in late 2020, reducing the number of large players to three from four.
Earlier this year, Salt struck a fibre-optic partnership with Swisscom, which will enable Salt to provide fibre-to-the-home connections to 3 million customers by 2025.