New ways of doing business in the telecommunications sector
N
ber 2007, the virtual mobile oper
onetheless, some companies hav
ator
e tried their luck in this terr
Blyk
ain
318
. In Septem-
U
ad-funded business model.
K. Its target market is limited to potential customers
Blyk operates through the
319
started oper
Orange
ating with an entirely
network in the
and 24, who must either be invited b
between the ages of 16
ties the company organizes. Before signing up for
y another user or sign up at one of the par
Blyk’s services, customers
-
must complete a
a SIM card (not a subsidiz
detailed questionnaire
sages a month for free in return for up to six MMS ads a da
ed handset) with 43 call minutes and 217 SMS mes
about their preferences. Blyk offers
-
350 euros a y
the attractive demogr
ear. For advertisers
y. Users save about
aphic group of y
, Blyk
oung people with strong br
offers a high degree of segmentation of
and loyalty.
Its model for gener
ad sent, and 0.22 pounds per MMS
ating profits is simple, charging 0.07 pounds sterling per SMS
operators that support its “network.
. It also creates rev
” Its future business model foresees the pos
enue through calls to other
sibilit
vices directly from their handsets, sharing the rev
y of introducing technology that would enable users to buy goods and ser
-
enue with advertisers.
-
With this str
lars per month, or 50% more than the a
consulting firm
ategy
Strategy Analytics
, the company had 30,000 customers as of March 2008. The
estimates that its ARPU was about 30 dol-
virtual operators in the UK. So far Blyk has done 900 commercial campaigns in
verage for prepaid users of the other
Vista
the UK for br
is astoundingly high, giv
323
and L’Oréal
ands lik
324
e
, with an a
Coca-Cola
ver
320
age response r
, STA Travel
ate of 29%. This percentage
321
, Penguin
322
, Buena
rarely surpasses 1%.
en that traditional advertising by mail, Internet or email
v
sumer
ertising as an attr
’s needs, instead of an in
activ
Blyk
e offer of products and services tailored to the con
has succeeded in getting consumers to see this ad-
vasion of their privacy. Blyk
-
Spanish market in conjunction with Orange
just entered the
and Belgium in the first half of 2009.
and will be expanding to Germany
8.1.6. Operators share profits from content
318
ring enticing applications and services, instead of the mere network access. This
The trend in the telecommunications world is to attract new customers by offe-
F
you are in control.
The Netsize Guide. Mobile 2.0,
ebruary 2008.
Netsize. Paris,
319
Blyk:
http://www.blyk.com/.
tr
new approach to an “aplication-centric” world jeopardiz
aditional business model used by network operators, which should be modified.
es the underpinnings of
320
http://www
Coca-Cola:
.cocacola.es/.
The content business is substantially different from that of the network access,
due to its multiplicit
321
http://www
STA Trav
.statr
el:
avel.com/.
fiercely
area if they w
. Nevertheless, oper
y, fragmentation, and the v
ators ha
ariety of players who compete
http://www
322
Penguin:
.penguin.com/.
and messaging services.
ant to compensate for the declining rev
ve no other choice but to bet on the content
enues generated by voice
http://studio
323
Buena Vista:
.go.com/.
324
L’Oreal:
http://www.loreal.es/. increase the rev
proach in fa
With this underlying threat, oper
vor of open models that promote inno
ators should abandon their walled gardens ap-
enues generated by them.
vation in the content area and
© 2008 Fundación de la Innovación Bankinter. All rights reserved.
155
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