TPG’s Felix rethinks low-cost mobile plans but won’t go ‘no-frills’

In the hyper-competitive pre-paid telco market, TPG Telecom’s Felix Mobile did something different when it launched three years ago.

Offering just one plan – unlimited calls, texts and data for $35 per month – the goal was to win people over with “radical simplicity” and then retain them with a slick digital-only customer experience and a commitment to sustainability.

But now the brand – operating on the Vodafone network – is expanding with two new plans that do cap data; a $25 plan with 25 GB per month, and a $30 plan with 50 GB. The unlimited plan has gone up in price to $40.

Kelly Beater, CEO of Felix Mobile, said the telco’s new plans were designed to be as affordable, but are still true to the brand.Credit: Brent Lewin

“A lot of people wanted a more affordable price point. And I think that was amplified with the cost of living crisis,” said Felix chief executive Kelly Beater.

“More and more people are looking to be able to save money where possible, and the $35 price point was just was too high.”

Even though unlimited data is practically unheard of in Australian mobile plans, Felix’s customer research also told it that many people didn’t think they needed it. But the telco still wanted generous inclusions, so it allows unlimited banking of data; any unused data in a month moves to the customer’s bank as long as they stay subscribed.

The new plans also allow maximum 4G speeds, whereas the unlimited plan caps speeds at 20Mbps, which is roughly four times what you need to stream HD video. If customers go over the data cap they’re slowed to 1.5Mbps, or can pay $10 for an extra 10 GB. With all plans, customers can add $5 per month for international calls and texts, or $20 for an international roaming package of 4 GB of data, 100 call minutes and 100 SMS which is valid for a year.

With the SIM-only prepaid subscription market containing literally hundreds of plans and dozens of operators, where some products are offered as low as $5 but come with serious restrictions, Beater said Felix spent a lot of time crafting the new plans.

“We realised from the very beginning that doing a low cost, no-frills proposition would mean that we’d just be in a price war,” she said.

With Felix, everything is done in the app. If a customer has an e-SIM compatible device, the telco says they can sign up and be active in the network within 10 minutes. Customer support is also handled solely through the app, and with the introduction of the new plans users can move up or down between the options with a few taps.

Felix only offers support through the app.

“There’s a bit of a myth out there that digital doesn’t equal great customer service, and based on our customer data we’ve completely dispelled that myth,” Beater said.

The other aspect of the brand is environmental. Felix says the entire operation is fuelled by renewable energy, it’s certified carbon-neutral, and since the beginning it has planted one tree every month for each customer. With the new plans, Felix also allows customers to exchange 20 GB of banked data for one extra tree planted. It has planted 1.25 million trees so far.

“When people are looking for a telco, at the time of purchase, they’re really focused on price and data. So it is important that we’re really competitive [on that],” Beater said.

“But when we ask them three, six, nine months after, what is your main driver of satisfaction, interestingly the number one driver is sustainability and the tree planting. Second is the app, and third is price and data.”

In this market, Beater said that affordability and value are paramount concerns. With Australia’s geography making it one of the most expensive places in the world to build and expand mobile networks, Felix had to find a way to offer connectivity for less than $1 per day despite huge capital expenditure. But she believes the other aspects of the brand are the key to retention.

As for those who had already taken up the unlimited plan, Beater had expected some to move down to the less expensive options right away. But that hasn’t happened.

“They’ve really stayed on the unlimited data plan. I think a lot of people are really happy with it. It’s a set and forget,” she said.

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