Amaysim launches low-cost mobile service

Mobile virtual network operator Amaysim launched into the Australian market today offering cheap calls and mobile data charged at five cents per Megabyte or $9.90 for a Gigabyte pack.

The company - which, when pronounced by its German entrepreneurs sounded like the word 'Amazing' - emulated low-cost operating models in Europe.

Its services would be offered over the Optus 3G network.

Amaysim's founder Rolf Hansen said the company wanted to provide a "simple and transparent" SIM-only mobile product to Australia.

He said the company had conducted a feasibility study in the past months "and were struck by the high price levels we saw".

He said that incumbent operators made it "really impossible to understand what you're paying for and why you're paying it".

In addition to the data rates, Amaysim charged 15 cents a minute for "standard mobile calls" -  extra for 13/1800 calls and those to satellite networks. It did not charge flagfall fees.

"The flagfall is an interesting phenomena," Hansen said.

"There's no cost [to the carrier] associated with flagfall. It's straight margin. We decided to take it away."

The company also charged 12 cents a "standard SMS" message.

Data use was charged per Megabyte and tethering - using the phone as an internet modem - was allowed.

The product cost the same whether users pre-paid or post-paid. Pre-paid credit lasted 90 days.

SIM cards will be made available at Woolworths, Harvey Norman, 7-Eleven and other retailers.