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 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.