Wednesday, July 29, 2009

Blyk-- a successful MVNO model! is now moving away from MVNO model!

Blyk in brief
Launched in the UK in September 2007, Blyk offers free calls and SMS to 16 to 24 year-olds in return for users accepting advertisements from leading brands. By September 2008, the firm had signed up around 200,000 UK subscribers.

Blyk latest strategy -- partnership/reveneu sharing, not MVNO
Blyk has confirmed to move away from its MVNO model by striking a deal with Vodafone in the Netherlands. Rather than running the business as an MVNO - as it does currently in the UK via Orange's network - Blyk will aim to form closer partnerships with its operator partners. According to the report, Vodafone will provide the mobile infrastructure, while Blyk provides technology and advertising sales for an own-branded service, and shares revenue with the operator.

Why?
Pekka Ala-Pietila said such partnerships would enable Blyk to grow faster than as an MVNO, as well as removing its infrastructure costs.

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