Simyo, the low-cost subsidiary of MasOrange, has made a move in the mobile low-cost war with five new rates that directly target DIGI. With unlimited calls and data ranging from basic to larger packages, the strategy is clear: offer reduced prices to attract users most sensitive to monthly spending. A move that shakes up the market.
Rate engineering: how MasOrange adjusts margins to compete 📊
From a technical standpoint, these rates reflect MasOrange's ability to compress margins using its own network infrastructure and roaming agreements. By eliminating extras such as TV services or cloud storage, the operating cost is reduced to a minimum. 4G/5G coverage remains that of the group, but the price is adjusted to compete in the segment where DIGI has dominated with its low-cost, high-customer-churn model.
And meanwhile, DIGI wonders if it will lower the price of a latte ☕
Simyo's move is as predictable as it is necessary: if you can't beat your rival, lower your price until they have a poker face. Now we just need DIGI to respond with another 50GB offer for the price of a piece of gum, and for us, the poor mortals, to have to make a spreadsheet to decide who robs us less per month. Meanwhile, the executives of both companies look at each other with a who will blink first face. Let the party continue.