Friday, April 24, 2015

Vodafone Spain Provides Ono Mobile Customers With 4G SIM Cards

Spanish mobile operator Vodafone has announced that it will provide 4G SIM cards at no cost to customers who migrated from Movistar’s network to Vodafone’s in order to access the operator’s 4G network. These customers—approximately 1.6 million—were added to Vodafone’s subscriber base when the operator purchased Spain’s private-equity-owned cable company Ono in March 2014. The new SIM card will enable these users to access Vodafone’s LTE and LTE-A services, which offer laboratory-tested download speeds of up to 150 Mbps and 300 Mbps, respectively. This SIM offering coincides with the launch of Vodafone’s converged offerings under the Vodafone One brand.

Spain, which continues to have a weak economy, has one of the most competitive telecom markets in Europe. The country is served by four MNOs and a growing number of MVNOs. According to recent reports, in late 2014 Orange surpassed Vodafone as the country’s second-largest operator by number of subscribers. While each of the country’s operators offers 4G services, they all need to continuously create offers that will help them retain current customers as well as attract new ones. With this in mind, in addition to securing 1.6 million subscribers who were using Ono’s MVNO services, Vodafone’s purchase of the cable operator enables it to offer subscribers triple-play and quad-play packages. As we have written previously, both fixed and mobile operators are investing in ways to offer converged packages as a new revenue source, since those from traditional services, especially voice, continue to fall. Converged offers—which we believe are more attractive if they include 4G service—invariably result in increased data demands from subscribers, and as it launches these offers Vodafone is smart to provide its newly obtained subscribers with 4G SIM cards as a way to drive data revenue.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: Click here.

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