👉 Background: Boost Mobile is a telco brand that was founded back in 2000. When it first launched, it sold pre-paid phone plans on the Optus network, but shifted over to the Telstra network in 2013. Since then, it has grown to over 1 million pre-paid customers.

👉 What happened: Now, Telstra will now acquire Boost Mobile for just under $140 million, making its founders, including former Prime Minister Paul Keating, a bundle of cash.

👉 What else: Telstra already have a cheaper telco service with Belong but it only has post-paid plans. So now, Telstra also wants a slice of Boost’s brand, customers and upfront cash from pre-paid plans to boost its network.

What's the key learning?

💡Cost-effective pre paid plans are dominating the telco game and if you’re not on board, you’re being left in the dust.

💡Boost Mobile's success proves that consumers want prepaid - it's 1 million customers are far ahead of budget-brand-Belong’s 569,000 post-paid customers as of June.

💡The pre-paid market is growing too. In fact, pre-paid services grew to nearly 39% of total plans at the end of June - up from 34% just 6 months ago. So this acquisition is Telstra’s first major leap into the booming pre-paid market. And with rising cost-of-living pressures, this trend could be here to stay.