Dutch internet service provider Solcon will add mobile services to its fixed line, cable and broadband packages in October, by launching the MVNO Solcon Mobile. Mobile SIMs will be offered to existing customers at a one-time fee of €7.50 (US $9.68) per SIM and monthly subscription fees of €0.00 to €2.50 (US $0.00 to $3.22) per month, depending on the customer’s fixed line, cable and broadband package. Calls will be billed per second and charged at a rate of €0.09 (US $0.11) per minute with a connection fee of €0.05 (US $0.06). Every SMS sent is €0.09 (US $0.11), and data rates are charged in increments ranging from €0.50 to €27.50 (US $0.65 to US $35.49) for 0 to 5 MB to 2 to 5 GB. SIMs for data only will also be available for tablets and laptops. The MVNO will run on T-Mobile’s network with internet speeds of up to 14.4 Mbps and throttled after 5 GB. Users can set spending limits and are billed for actual usage.
Following the trend of fixed-mobile convergence, Solcon’s expansion into mobile will move the company from a triple play (fixed line, television, and broadband) to a quad play (fixed line, television, broadband, and mobile) provider, adding revenue streams. While the company is still relatively small, with 40,000 residential subscribers and more than 15,000 business customers, it is well positioned to capture revenue from subscribers in its existing business and consumer base who may now converge their services at discounted prices. Solcon can build on its existing infrastructure and exploit its VoIP solutions while offering a mobile substitute for customers who forego fixed line services. The Netherlands has a large number of MVNOs in an environment where it is easy to enter and leave the market. If Solcon can leverage its existing infrastructure and customer base and underprice the competition to provide quality mobile service, it could find additional revenue streams in both the consumer and business sectors.
“Fixed-mobile convergence continues with Solcon’s expected launch of its MVNO in October. The trend has enabled fixed line, broadband and cable providers to leverage existing infrastructure and venture into the lucrative mobile market. MNOs are also pursuing this path. Deutsche Telekom this week released its Magenta EINS plan, offering quad play subscriptions that combine fixed and mobile services. Both MVNOs and MNOs are looking to capture revenues, reduce churn and add customer bases to stay competitive, which means offering customers a one-stop shop for all services.”
Senior Analyst at Tarifica
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