easyMobile comes back, but the calls aren't free as Stelios had announced

The British phone company easyMobile is back, 18 months after it had to shut down. But this time the brand name doesn't stand for a mobile virtual network operator (MVNO). The Greek serial entrepreneur Stelios Haji-Ioannou, also founder of the airline easyJet and other successful low cost product ventures, has changed the business model entirely and doesn't comply with his former announcement about the future of easyMobile.

Exactly one year ago Stelios told me that he wanted to resuscitate the company as MVNO with free phone calls, sponsored by advertising. A similar business was already in the making under the name of Blyk, a UK based start-up by the former president of Nokia Corporation, Pekka Ala-Pietilä. It launched some months later but it seems that Blyk hasn't conviced Stelios, because the new easyMobile is nothing more than a new face for the Swedish VoIP company Rebtel. The press release says:

Rebtel, the people's global communications company, today announced a brand licensing agreement with easyGroup that will allow Rebtel to increase its presence in the UK and reach new markets for its mobile VoIP services.

easyGroup is the business of easyJet founder and serial entrepreneur Sir Stelios Haji-Ioannou.

Under the agreement, Rebtel-powered services for making low cost international phone calls from any mobile phone, over any UK network, will be sold and marketed on easyGroup's http://www.easyMobile.com web site.

Rebtel's CEO Hjalmar Windbladh sounds very enthusiastic. "Sir Stelios and easyGroup are our kind of partners", he says. "They want to make a difference in people's lives. They offer services for the many, not the few. They take on the big boys in the market and treasure relentless innovation. And most importantly they're open and honest. Those are all values that Rebtel was built on."

Hopefully his cooperation lasts longer than the former easyMobile. Stelios is a genius in lending his brand name, but he also tends to end franchising very fast. The first easyMobile was planned as pan European MVNO in 12 countries. The Danish operator TDC licensed the brand from Stelios' easyGroup but things didn't turn out so well. TDC got bought and changed their business strategy which made Stelios retract the brandname. In just 48 hours the German branch had to change its name into callmobile. „You always have to be cautious that the franchisees don't damage your established brand name“, Stelios said in our interview.

Hjalmar be careful!

Jan Michael Hess is reengineering Blyk’s Business Model

My friend Jan Michael Hess, CEO of the Berlin-based management consultancy Mobile Economy GmbH, has just published an interesting whitepaper "How to build a profitable ad-funded M(V)NO and maximise Ad ARPU". Since he is an expert in mobile advertising and MVNOs, he decided to reengineer Blyk’s business model, share his findings and develop a number of strategy recommendations that might be valuable to Blyk as well as future ad-funded MVNOs and MNOs.

I believe that it is possible to build a profitable ad-funded MVNO. It is also possible for MNOs themselves to introduce ad-funded voice and data tariffs. You don’t necessarily need to build a new MVNO brand like Blyk to maximise Ad ARPU.

Since the actual values in Blyk’s business plan and the wholesale prices negotiated with the Host MNO Orange in the UK are secret, Hess uses his own assumptions for the parameters driving revenues, costs and profit in the whitepaper's calculation. The outcome is a very educated guess work which probably hits the spot and helps to understand the ad based MVNO business model.

Free calls MVNO Blyk goes live with goofy questionnaires

Since I cannot attend personally the launch of the free mobile phone calls MVNO Blyk that is being held in these very minutes in London, I can only present the press release. I also got a Powerpoint presentation as PDF that explains more comprehensively how the advertising sponsored MVNO works.

Before becoming a customer you have to fill in a long questionnaire about your consumption preferences. Later you get advertising in every SMS you receive from a friend. Apparently before every phone call you have to answer questions like "Which of these celebs are you the most like: Eva Longoria, Penélope Cruz, Claudia Schiffer, Naomi Campbell, ... ?" and Blyk recommends you the adequate L'Oreal lipstick.

That makes me wonder what happens to customers who don't look similar to super models. Are they not allowed to talk?


Reference: Press Announcement
Release Date: 24 September, 2007

Blyk goes live
The world’s first advertising funded mobile network for 16-24 year olds launches in the UK

London, 24 September, 2007 - Blyk, the new mobile network for 16 to 24 year olds today announced the launch of its UK service. The announcement was made by the company founders Pekka Ala-Pietilä and Antti Öhrling at a press launch event in London this morning. Blyk is an invitation-only mobile virtual network operator (MVNO) that links young people with brands they like and gives them free texts and minutes every month.

For brands, Blyk is an innovative, new media channel, providing direct access to the 16-24 year old market; enabling them to create awareness, build relationships and drive sales to this hard to reach audience. Since its conception early last year, Blyk has been undertaking extensive research in the UK with user group studies and live user trials. These have helped to make the offering extremely compelling for young people and advertisers alike.

Pekka Ala-Pietilä said: “We have spent the last year developing a unique, robust advertising content engine and whilst the technology we are using is incredibly advanced, the main premise of Blyk is driven by 3 basic principles – ease of use, interaction and relevance of the communications.”

Blyk understands the importance of relevancy in communication and has built its system to enable this. By means of profile questions at sign-up and ongoing SMS polling during membership Blyk Media enables brands to target messages like no other medium. Response rates have also been exceptionally high, with some testers reportedly missing the service at the end of the trial.

Further to this Öhrling said: “We found that what is 90% familiar and 10% new leads to the best user experience. So, the Blyk communications formats are based on the most dominant and most familiar pattern among 16-24s: Getting a message and responding to it. Both picture and text.”

Brands will be able to engage Blyk members in question/response type interactions. For members these interactions are free. For advertisers all responses and interactions by members are tracked, giving great accountability to the campaign.

“We found throughout our research that this simple, familiar type of interaction leads to tremendous response rates. “ says Öhrling. Speaking at the network’s launch in London today, Pekka Ala-Pietilä said:

“Our free offer is 217 texts and 43 minutes every month and this could mean no more phone bills for up to 4.5 million young people in the UK - with no contract. We have the brands that want to speak to them too, with more than 40 already signed up for the launch. This group represents almost every industry sector there is.”

“It’s going to spread because, at the heart of it, it’s got a creative idea. A mobile phone network that’s funded by advertising; that’s something you want to tell people about. Fundamentally it’s the interaction that young people do most on their mobile phone: receiving and responding to a message.” says Antti Öhrling.

About Blyk

Blyk is the new mobile network for 16 – 24s that’s funded by advertising. Blyk links young people with brands they like and gives them free texts and minutes every month. Blyk was co-founded in 2006 by Pekka Ala- Pietilä and Antti Öhrling and has offices in Helsinki, Finland and London, UK. Blyk is now operating in the UK, with other European markets to follow.
For more information, visit about.blyk.com.

ENDS


Notes to Editors:

Invitations to join Blyk will be sent out over the next few weeks via channels targeted to reach 16-24 year olds.

For further information, please contact:
UK Trade media:
Karen Keany
The Practice, telephone +44 (0) 20 7812 0662/mobile +44 (0) 7989 429 367
Karen@thepractice.org.uk

UK Consumer media:
Rax Lakhani
Splendid Communications, telephone +44 (0) 20 7324 7200
rax@splendidcomms.com

International media:
Irene Nyberg-Jarventaus
Blyk, +44 (0) 7747 844 854
irene@blyk.com

Blyk limited
Registered office:
4 th Floor
80 Leadenhal Street
London EC3A 3HA
Registration number: 05778607

Free mobile calls with Blyk from next monday

I just got a phone call from the UK. Blyk, the ad-supported MVNO, will launch next monday, 24th September 2007. They wanted me to interview the co-founders, Pekka Ala-Pietilä, former president of Nokia, and Antti Öhrling at their press conference in London.

The new virtual operator is targeting 16 to 24 year olds. Blyk rents airtime from Orange and uses technology from Nokia Siemens Networks to deliver free calls, sponsored by advertisers like Buena Vista, Coca-Cola, I-play Mobile Gaming, L’Oreal Paris, StepStone and Yell.com, says TechCrunch UK.

Unfortunately I cannot go personally, but I told Ewan MacLeod, blogger at SMS Text News, to ask a question in my name. I would like to know if they are in contact with Stelios Haji-Ioannou, founder of the airline easyJet and other successful low cost product ventures. He told me three months ago that his brand easyMobile would come back with free mobile calls sponsored by advertising.

easyMobile comes back with free mobile calls, says Stelios

Today I spoke in Berlin to serial entrepreneur Stelios Haji-Ioannou, founder of the airline easyJet and other successful low cost product ventures. It was during a press conference about the launch of easyHotel.com, which wants to open 10 budget hotels across Germany over the next four years. But much more interesting I found what we talked aside: His mobile virtual network operator (MVNO) easyMobile will come back and offer free cell phone calls, sponsored by advertising.

Until not long ago there already was another easyMobile, planned as pan European MVNO. The Danish operator TDC had licensed the brand from Stelios' easyGroup but things didn't turn out so well. TDC got bought and changed their business strategy which made Stelios retract the brandname. In just 48 hours the German branch changed its name into callmobile. „You always have to be cautious that the franchisees don't damage your established brand name“, Stelios said today.

Now he is planning to start a new MVNO under the name of easyMobile early next year. „The MVNOs brought the cell phone costs down but until now nobody offers completely free phone calls“, he said to me today. „People are used to pay for mobile communication and still cannot imagine that it could be free like televison.“ Therefore he is looking for the right partner to start a free phone calls MVNO, sponsored by advertising. A similar approach we already know from Blyk, a UK based start-up by the former president of Nokia Corporation, Pekka Ala-Pietilä, which is due to launch this summer.

Before every phone call Stelios wants to play an advertising message, which is not necessarily an easy business model, he admits. „To found a cheap MVNO is easy“, he says „but the trick is on the advertising side“. In his plans the advertising should be location based, at least on city level, and requires a lot of personalization. „A person that every thursday night orders at Pizza Hut could be played a Domino's advertising“, he jokes. But to use all the personal data that's necessary for such a service the new easyMobile needs ample permissions from its customers. „People are aware that they give away their data in exchange for free phone calls“, Stelios dismisses any doubts.

Actually he is looking for the right advertising partner to provide the necessary technology and data. He even asked me for a recommendation. When I mentioned Google/Doubleclick he said „yes, but Google today is very much into everything.“

So let's wait and see. After all I wouldn't even be surprised to realize that Blyk is in fact just a place holder for the new easyMobile. The two companies have not yet launched, they share the same business model, are located in the same city and want to start their businesses in the same market at nearly the same time.

Maybe they just are the same?