Stelios launches no-frills mobile contender

Aiming for a Danish repeat

NEWS No-frills mobile operator easyMobile has officially launched in the UK.

The venture is the latest addition to cheapo airline pioneer Stelios Haji-Iannou's empire and is concentrating on selling airtime and SMS without any bundling or handset subsidies. All voice minutes and texts will be sold at a single tariff - 15p per minute and 5p per text message - with no line rental charges.

The operator will also be selling its services exclusively over the internet and customer service will be minimal.

The newest UK operator will be run in partnership with Danish operators Telmore and TDC, with T-Mobile providing the network for Stelios' service provider to piggyback on. Frank Rasmussen, ex-head of Telmore, is CEO of the MVNO (mobile virtual network operator).

Rasmussen's Telmore operator was run on a similar model and, following the MVNO's entrance into Danish domestic market, prices halved and Telmore now has an 11 per cent market share.

To try to stimulate demand, prices for easyMobile from launch until June will be 3p per text and 9p per minute for calls.

Analysts are already betting on Stelios' success in the UK market.

A report from Strand Consulting said: "We believe that the launch of easyMobile in the UK will be a repeat of exactly what we have experienced in e.g. Denmark over the past four years. easyMobile's CEO Frank Rasmussen will act in way that has not been seen before in the UK. The phrase 'Guerrilla Marketing' will be an important element in how Frank Rasmussen and easyMobile will profile themselves."

Haji-Iannou hasn't been struggling to generate publicity since he announced his intention to launch the MVNO. Fellow mobile operator Orange has already filed a trademark suit over easyMobile's trademark use of the colour orange.

Comments

There are 4 comments. Join the discussion

  1. 1. anonymous

    More expensive than Virgin for landlines at least. Theirs drops to 5p/min after 5 mins.

    Calls to other mobile networks are cheaper, however, for low users:

    "easyMobile demand a minimum usage of £5 during a 3 month period. If this minimum usage is not upheld we charge a fee of £0.75 pr month until the minimum usage demand is met."

    I think I'll be sticking with Virgin.

    • 11 March 2005 10:09
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  2. 2. Brian Catt

    Colour me bored? This isn't cheap. Its the same as Tesco and not much less than others. Hardly Easy levels of discount.

    As for Orange that's pathetic. When Microsoft launched its MBS services it virtually copied IBMs ad style, adverts but with not credible T-Shirt wearing unshaved corporate exec actors AND used BLUE as the background. Not a peep. FInally from memory Stelios has used the colour Orange in his Logo/branding since day 1. Is it because they is French?

    • 11 March 2005 11:32
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  3. 3. Geoff Holland

    This is a bit of a disappointment. It's no better than Carphone Warehouse's "Fresh" virtual network, also linked to t-mobile. However, with "Fresh" you get the high quality customer service that Carphone Warehouse is rightly renowned for. There's also a choice of tariffs.

    • 11 March 2005 15:57
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  4. 4. Frank

    I'll stick 2 Virgin!

    • 13 March 2005 01:46
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