The Budapest Sun

Primus dials up a Magyar connection

Mobile phone providers have finally seen a gap in the market—small business. Guy Clapperton looks at how contracts are being tailored to suit SMEs

" on average callers can save 20-30-40% [depending on their calling patterns]," said Andrew Reid, managing director of Primus.

By Horatio Clegg
November 11, 2004 - Volume XII, Issue 46

PRIMUS, the international telecom provider, is moving into Hungary for a slice of what is sees is a potentially lucrative market for international telephony from mobile phones, promising to cut bills for outward calls by up to 40%. Primus, which began operations as a fixed line operator in Australia in 1995, has grown to be the world's fifth largest provider in international calls, with annual revenues of $1.3 billion last year.

"By switching outbound calls to our global network we can charge fixed-line rates to our mobile users. We have looked at our target markets, and for Hungary, for those typically phoning the neighboring countries, and maybe the United States and UK, on average callers can save 20-30-40% [depending on their calling patterns]," said Andrew Reid, managing director of Primus.

Speaking to a trade audience in Budapest last week, Reid's 45 minute presentation was riddled with telecom jargon, but in essence Primus has been able to build the low cost calling card into its own handsets.

It was also clear that Primus intends to offer a package of services that would also allow users to evade the depressing cost of calls when roaming abroad with a mobile.

"Roaming costs do not bear any resemblance to the charges consumers pay. They are outrageous," Reid said.

By using local SIM cards and the Primus network, bills could be slashed on long trips abroad, he said.

As an example, the London-based Reid cited a recent three week tour involving continental Europe, Asia and South America.

"I can't give you exact figures, but I'd say my £500 bill would have been in the region of £2,500," he said.

Primus hopes to have its range of handsets available with Hungarian instructions from early December retailing at around €275-350.

"I know there are a lot of providers. Nobody said this would be easy. But if we get the distributors, and we are prepared to help them with the marketing, as we have done, for example, in Syria, this market will grow, as it has elsewhere.

"We'll find you, and we'll save you money," he promised.

Reprinted from the Budapest Sun.

For more information on Primus, view the latest press releases.