AGL launches push into telco space, reveals new mobile phone plans

AGL Energy has become the latest energy company to expand its offerings into the telecommunications space, launching its first mobile phone plans and offering discounts when plans are bundled with AGL electricity or gas plans.

Under its AGL Mobile brand, AGL will offer sim-only plans for mobile phones, with no lock-in contracts, three levels of data allowances, and which will operate on the Optus 3G and 4G mobile network.

AGL has long flagged a push into the communications space, seeing strong alignment between its current offering of utilities like gas and electricity, with data services.

The company said that it sees the provision of internet and mobile service as akin to any other essential service and that its current energy retail business could be adapted to communications services.

“We want to transform how Australians connect to the essential services that power their lives,” AGL’s chief customer officer Christine Corbett said. “We’re offering customers simplicity and ease by taking away the hassle of calling several providers and becoming the one provider who can offer it all.”

“By bundling services, we are delivering value, convenience and flexibility for customers, while also helping to make homes and businesses smarter and more efficient. AGL customers will soon be able to manage their essential services through the AGL app, making it easy to monitor energy and data usage and pay bills.”

AGL said that the mobile phone services would be certified as carbon neutral by the end of the 2021 financial year, covered by a wider commitment by AGL to offset emissions from the company’s operations.

“We know that customers aren’t just seeking easier options, they want to know that the services they’re using are sustainable and contributing to a cleaner future,” Corbett added.

AGL said that customers that combine energy and mobile phone plans would receive a $5 per month discount on the monthly mobile subscription fees.

AGL has sought to expand the services side of its business, as it prepares for the closure of its substantial portfolio of coal-fired generators that are approaching the end of their operational lives.

In 2019, AGL launched a bid for ASX-listed telecommunications company Vocus Group, in a deal that initially valued the company at more than $3 billion. However, AGL subsequently withdrew the bid after completing a process of due diligence on the company.

AGL subsequently acquired regional internet service provider Southern Phone Company, which has been established a collective of local councils to provide dedicated internet services to residents outside of city centres. AGL’s acquisition of the Southern Phone Company for $27.5 million marked its first play in the communications space.

There has long been speculation that some communications companies, particularly Telstra, are readying to make a similar expansion to become combined energy-and-data providers.

Last year, Telstra’s Ben Burge hinted during the Australasian Emissions Reduction Summit that the communications giant company was actively considering a push into the electricity retailing space.

Burge, who previously headed electricity retailer Powershop’s Australian operations, said that the ability to offer carbon neutral services would be key to any energy offering from Telstra.