X-Mobility Launches New Consumer eSIM Service

U.K.-based MVNO enabler x-Mobility has announced the launch of its new consumer App eSIM service. This is a white-label consumer eSIM service for MVNOs, brands and MNOs to offer new data roaming packages to customers.

App eSIM works by allowing users to subscribe to extra data tariffs on top of the ones accessed through their physical SIM, such as subscribing to a local data plan overseas to avoid expensive roaming fees.

This complements x-Mobility’s existing AppVNOTM service, which provides subscribers with a branded calling and messaging app for signing up to additional mobile numbers.

There are phones with eSIMs, and there are dual-SIM phones. This product from x-Mobility appears to combine the two concepts, so that the second SIM is an eSIM. This would enable an operator to offer its subscribers access to other data plans than the one they have subscribed to with their original SIM.

One example is roaming data packages which are needed on a short-term basis while traveling, when the user does not want to get a new phone or subscribe for a service period longer than the trip itself. Other examples could include data needed for work on a personal phone or vice versa, and special gaming or streaming packages needed on a short-term basis.

As x-Mobility is an MVNO enabler, this product would seem to be best for virtual operators and budget brands of MNOs. And indeed, one of the important drivers of MVNO subscription is the desire for flexibility and economy in plan services. By allowing users to have access to extra data packages at short notice without needing a separate device, App eSIM could satisfy this criterion. While major operators may consider using this functionality, as well, it seems best adapted for the virtual operators.

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Telecom Italia Launches Offer Targeting MVNO Customers

Telecom Italia has launched a new offer called TIM Supreme 50 Giga, with 50 GB of 4G/LTE data at speeds of up to 150 Mbps, plus unlimited calls, for €5.99 (US $6.61) a month, according to a report. The offer is available at TIM-affiliated stores for users who switch to the operator’s service from a range of MVNOs including Iliad, Fastweb Mobile, PosteMobile and CoopVoce. Customers of LycaMobile, Vodafone’s Ho.Mobile and TIM’s own MVNO brand Kena Mobile are not eligible. A new SIM card costs €10.00 (US $11.04) and the activation fee is €12.00 (US $13.25).

TIM’s Supreme 50 Giga package is an aggressively low-priced offer that clearly takes aim at Italy’s MVNOs. A generous serving of high-speed data on a proven-quantity network, with unlimited voice calls, is certainly a bargain at €5.99 a month, and this is definitely a valid strategy with which a major MNO could reclaim some market share from small budget-minded competitors. Whether it ends up being a true MVNO-killer, however, may depend on several factors other than price and quality of service.

For one thing, MVNO customers are likely to be averse to contracts. If the Supreme 50 Giga requires a commitment of any kind, that could be off-putting for some of these users. The fact that it is postpaid rather than prepaid, as appears to be the case, could also be an impediment, although if there is no long-term commitment, that could make it more palatable for those who are used to pay-as-you-go.

It should be noted that in addition to not cannibalizing its own MVNO brand, Kena, TIM is also keeping its hands off its rival among the major MNOs, Vodafone, as well as LycaMobile, a massive worldwide MVNO brand. The operator is not trying to declare war, only to launch a salvo against some local targets that it feels are vulnerable. 

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New U.S. MVNO Aims to Put Customers First

Community Phone, an MVNO based in the U.S., just opened its first retail store, in Cambridge, Massachusetts, near Boston. The MVNO launched its service, which runs on Sprint’s network, last year, signing up its first customers from an outdoor table in Harvard Square, a prominent public space in Cambridge, and from centers for senior citizens.

The operator is tiny, with a subscriber base of only around 300, and it presents itself as a community-based, grass-roots alternative to traditional mobile services. The CEO and co-founder, James Graham, is 22 years old and is often present in the store, available to speak with and assist anyone who comes in. The other co-founder, John LaGue, is also frequently on-site. Community Phone’s phone-based ordering and support system is staffed so that anyone who calls will speak to a human. Currently, the subscribers are located mainly in the Cambridge area and in Wisconsin, where Graham and LaGue grew up, and are mainly from the youth or elderly demographics.

Community Phone offers several plans, with no contracts and no initial fee. The Simple plan costs US $25.00 a month and offers unlimited calls and texts with 1 GB of data. For US $35.00 a month (the Standard plan), users get the same service but with 2 GB and the opportunity to get additional data at US $3.00 per 250 MB. Finally, the Couple plan offers two lines for US $65.00 a month, with 4 GB of shared data and each additional 500 GB for US $5.00. The company promises that if it should fail, all customers will automatically be switched over to Sprint so they will not lose service.

This grass-roots, bootstrap, small-scale approach to providing mobile service is an interesting elaboration of the MVNO concept. Community Phone’s founders are responding to a situation in the market where at least some users are frustrated by the impersonal nature of the large operators, and hopes to carve out a niche for itself by providing extremely hands-on customer care.

The “small is beautiful” attitude of Community Phone and its emphasis on simplicity should appeal to some users because they are trying to simplify their mobile lives, or else  because they are relatively unfamiliar with the technology and may be intimidated by the major players in the mobile market. It is interesting to note that while the youth and senior demographics are often spoken of as having very different needs and tastes, Community Phone seems to be finding some commonalities between them, such as a desire for simplicity and low cost, and each age group may well value the in-person availability of customer service, though perhaps for somewhat different reasons.

The idea of micro-MVNOs that respond closely to community needs is promising, but growth is inevitable if a company is to survive and prosper. The question here is, will Community Phone be able to retain the characteristics that have enabled it to get this far, if it gets bigger? For now, though, one could say that although T-Mobile US touts unconventionality as its selling point, the Cambridge newcomer is truly an “un-carrier”! 

 Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.  

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Telefónica Launches Tuenti MVNO in Guatemala

Spain-based multinational operator Telefónica has announced the debut of its prepaid, youth-focused Tuenti MVNO in Guatemala, which it says will feature flexibility and transparency. The available voice-and-data bundles range from 1.5 GB of data and 75 minutes of calls for GTQ 50.00 (US $6.50) to 3 GB and 100 minutes for GTQ 75.00 (US $10.00) and 5 GB and 125 minutes for GTQ 100.00 (US $13.50). The plans also include unlimited access to WhatsApp, unlimited calls to other Tuenti subscribers and 25 minutes of VoIP calls through the Tuenti app.

Guatemala is the fifth Latin American market in which the Tuenti MVNO brand has been launched; first Mexico in 2014, then Argentina, Peru and Ecuador. The Mexican experiment did not go very well, and Telefónica discontinued Tuenti in that country, but that does not appear to be an indicator that this type of service is, generally speaking, a weak competitor. Most likely, the budget MVNO faced too much competition in Mexico, while in the other markets it is able to garner more market share.

As we have written in the past, the youth market is a fast-growing and potentially very lucrative one for mobile operators. Young people, while budget-minded by necessity, are strongly inclined to use large amounts of mobile data, and they are at an age when consumption habits and brand loyalties are being formed. Therefore, generous and low-priced offerings of data on a prepaid, low-commitment basis are the right way to get and keep these valuable customers.

Tuenti’s Guatemala service fits the bill in terms of price as well as data allowances—which, though not princely, they are adequately generous and appropriate for streaming entertainment content. The zero-rating of WhatsApp recognizes the fact that youth tend to rely heavily on OTT messaging.

While Tuenti does not offer specifically youth oriented entertainment content, it does offer calls to other Tuenti users, which is at least a nod to the particularly social nature of its target demographic.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

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Vodafone Italia Appears Set to Launch Budget MVNO

Vodafone Italia is preparing to launch a low-cost MVNO brand later this year to compete with Telecom Italia’s recent debut of its Kena Mobile MVNO and the imminent entry of France’s Iliad as the country’s fourth mobile network operator, according to a news report. Back on 8 March, Vodafone created a company called Vei SRL and informed competitors that it holds a general license for full MVNO activities.
 
The new entity would serve as the vehicle for the new MVNO brand, which could begin providing mobile number portability services as early as this September, said the report. While Vodafone sources indicated to journalists that no final decision has been taken and that the company is still evaluating its options, the creation of a new brand and the existence of a detailed roadmap point to the imminent launch of a budget service.
 
Italy’s MVNO war looks set to heat up, with some help from a foreign power, so to speak. Two months ago, TIM (Telecom Italia) began offering Kena Mobile MVNO plans. In addition, French operator Iliad (which provides mobile service under the brand Free) plans to launch as an MNO in Italy sometime between November 2017 and January 2018.
 
In this market climate, it makes a great deal of sense for Vodafone Italia to take decisive action and create its own budget-minded service to compete. The famously disruptive Iliad is known for its aggressive offers and says it is planning to grab 10 percent of the Italian mobile market quickly. Vodafone sees the need to respond in kind. At an industry conference last November, Vittorio Colao, the CEO of Vodafone, when asked about Free’s launch in Italy, said, “When you have a big warship and the pirates are approaching, it makes sense to send out the commandos in the speed boats,” referring to tactics such as price cuts and more generous data bundles.
 
Now that the time to deploy the commandos has arrived, the operator has apparently chosen the MVNO type of speed boat. The logic of that seems to be that by breaking out its budget service into a separate brand, Vodafone can more effectively and directly market itself as an alternative to Free (as well as to TIM’s MVNO), both to existing and prospective customers.
 
As for TIM, its new Kena Mobile MVNO is offering the choice of a voice-only bundle of 1,000 minutes or a bundle of 4 GB of 3G data for €3.99 (US $4.45) per month, with the cost rising to €9.99 (US $11.14) per month for 600 voice minutes, 100 SMS and 6 GB of data. We would expect Vodafone’s prospective MVNO, if it indeed comes to the market, to at least equal that.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

Vodafone Italia Appears Set to Launch Budget MVNO

Vodafone Italia is preparing to launch a low-cost MVNO brand later this year to compete with Telecom Italia’s recent debut of its Kena Mobile MVNO and the imminent entry of France’s Iliad as the country’s fourth mobile network operator, according to a news report. Back on 8 March, Vodafone created a company called Vei SRL and informed competitors that it holds a general license for full MVNO activities.
 
The new entity would serve as the vehicle for the new MVNO brand, which could begin providing mobile number portability services as early as this September, said the report. While Vodafone sources indicated to journalists that no final decision has been taken and that the company is still evaluating its options, the creation of a new brand and the existence of a detailed roadmap point to the imminent launch of a budget service.
 
Italy’s MVNO war looks set to heat up, with some help from a foreign power, so to speak. Two months ago, TIM (Telecom Italia) began offering Kena Mobile MVNO plans. In addition, French operator Iliad (which provides mobile service under the brand Free) plans to launch as an MNO in Italy sometime between November 2017 and January 2018.
 
In this market climate, it makes a great deal of sense for Vodafone Italia to take decisive action and create its own budget-minded service to compete. The famously disruptive Iliad is known for its aggressive offers and says it is planning to grab 10 percent of the Italian mobile market quickly. Vodafone sees the need to respond in kind. At an industry conference last November, Vittorio Colao, the CEO of Vodafone, when asked about Free’s launch in Italy, said, “When you have a big warship and the pirates are approaching, it makes sense to send out the commandos in the speed boats,” referring to tactics such as price cuts and more generous data bundles.
 
Now that the time to deploy the commandos has arrived, the operator has apparently chosen the MVNO type of speed boat. The logic of that seems to be that by breaking out its budget service into a separate brand, Vodafone can more effectively and directly market itself as an alternative to Free (as well as to TIM’s MVNO), both to existing and prospective customers.
 
As for TIM, its new Kena Mobile MVNO is offering the choice of a voice-only bundle of 1,000 minutes or a bundle of 4 GB of 3G data for €3.99 (US $4.45) per month, with the cost rising to €9.99 (US $11.14) per month for 600 voice minutes, 100 SMS and 6 GB of data. We would expect Vodafone’s prospective MVNO, if it indeed comes to the market, to at least equal that.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 


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3 Italia's Teen-Oriented Mobile Offering

Italian operator 3 Italia launched a time-limited mobile offering during the Easter season, targeted at teenage users. The operator’s All-In Teen Limited Edition bundle came with 10 GB of data, 1,000 minutes of calls and 100 SMS for €5.00 (US $5.32) a month. There was a one-off activation fee of  €9.00 (US $9.57), and the offer was only available to users who port their numbers from TIM or MVNOs by 19 April.
 
We have written on several occasions about the strength of the youth market and the importance for mobile operators to cultivate it. We generally understand “youth” to refer to young adults, who are digital natives and are still forming their spending habits and brand loyalties. But we should be aware that the age at which people become users of mobile technology is getting lower and lower, especially in affluent markets. As a result of this trend, operators can benefit from getting hold of potential long-term customers as early as possible.
 
Pushing the definition of the mobile youth market downward in terms of age is going to be increasingly prevalent, we believe. 3 Italia’s move, although a short-term promotional one with limited eligibility, is indicative of the direction in which MNOs might choose to go. The All-In Teen Limited Edition bundle seems appropriately designed, in that it includes a fairly generous data allotment to accommodate teens’ desire for streaming entertainment content and games, as well as a good number of voice minutes but not many SMS, reflecting young users’ preference for OTT messaging apps.
 
The extremely low monthly rate is also a thought-provoking idea, in that it suggests that the teens are be paying for this plan themselves, rather than their parents. What this means is that the operator clearly wants the teens to be making brand choice, so that they can be cultivated for future, and indeed long-term, loyalty. For MNOs, the argument that the earlier you can get them, the longer you can keep them is likely to be increasingly persuasive.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

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Youfone Makes Changes to Data Bundles

Dutch MVNO Youfone has made some changes in its data bundles. Bundles of 500 MB, 700 MB and 5000 MB will no longer be offered while a bundle of 6000 MB will be added. The MVNO now provides bundles of 1000 MB, 1500 MB, 2000 MB and 6000 MB. All non-4G bundles will now cost the same, regardless of whether they come with a contract that can be terminated on a monthly basis or with a two-year contract. Speeds for the 4G bundles has been increased, from 50/25 Mbps to 256/150 Mbps. MVNOs, once the province of the budget-minded consumers who emphasized voice calls and messaging over data consumption, are now definitively in the big-data business. Being averse to long contracts no longer implies being averse to heavy mobile internet use, and Youfone’s new suite of data bundles appears to respond to this trend. By eliminating small packages and adding even larger ones, the MVNO is catering to the needs of its customers, encouraging more data consumption, and maximizing the use of its networks, both 4G and non-4G. Increasing speeds is also a good way to promote more data use. And by pricing all non-4G bundles the same, the operator is clearly incentivizing customers to use enough data so that they will decide that non-4G is no longer fast enough to accommodate their needs and therefore make the switch to 4G.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

Tuenti Ecuador Launches Referral Offer

Spain-based international operator Telefónica has announced the launch of a friends’ referral scheme to help boost uptake of its Tuenti Movil MVNO service in Ecuador. Under the offer, any Tuenti prepaid customer can access their account online and send an invitation to friends via email, Facebook or Twitter. The friend who sets up a Tuenti account and as the friend who made the referral each receives US $5.00 in promotional credit. Tuenti Ecuador offers a series of data-focused prepaid plans, ranging from a 7-day bundle with 100 MB of data, 15 minutes of calls and 15 SMS for US $5.00 to a 30-day bundle with 400 MB of data, 60 minutes of calls and 60 SMS for US $15.00.

  

The MVNO market in Ecuador is in its infancy; when Telefónica, which operates under the brand name of Movistar there, launched Tuenti there in June 2015, it was the first MVNO in the country. There are currently no independent MVNOs in Ecuador. So while Tuenti has no direct competitors, it still needs to establish itself in a marketplace that is unused to such offerings. In order to distinguish itself from Movistar’s other offerings, as well as from those of competitor MNOs, Tuenti has emphasized the social media angle with unlimited zero-rated WhatsApp and Facebook usage. This brand identity harmonizes well with a socially driven promotion campaign such as this friends’ referral scheme, which operates via social media, as well as email. We believe that it is particularly persuasive, in that the amounts of credit received for a referral is quite large in the context of Tuenti’s prepaid tariffs, since it is equivalent to a week’s worth of services. In addition, the fact that both the referred friend and the one making the referral get a credit makes the offer even more attractive.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Xiaomi Launches Its Own Mobile Service in China

Chinese handset maker Xiaomi has launched its own mobile service in China. The service, called MiMobile, offers a SIM that works over China Telecom’s 2G/3G/4G network. The prepaid service charges CNY 0.10 (US $0.016) per minute, text or MB, and customers can also subscribe to a bundle of 3 GB data for CNY 59.00 (US $9.25) per month. Users also receive free roaming across China and free incoming calls. Xiaomi announced the new service at the presentation of its latest smartphone for the Chinese market, the Mi 4c, which will be priced at CNY 1299.00 (US $203.64) for 2 GB RAM and 16 GB storage or CNY 1499.00 (US $234.99) with 3 GB RAM and 32 GB storage. The Mi 4c also supports infrared technology to replace common remote controls, such as for a TV or air conditioner, and Xiaomi’s EdgeTap technology to perform common functions with a simple tap of the phone. Xiaomi has been making worldwide waves with its smartphones, in overseas markets such as India, where expanding demand for data has driven demand for budget-priced devices. Now the aggressive manufacturer is expanding in a different direction by offering mobile service of its own as an MVNO, running on the network of China Telecom. Competing in China’s mobile market seems like a logical next step for Xiaomi. Offering the service via SIM will make it available as widely as possible, but MiMobile can also be seen as a way to drive device sales within China, where they have lately been doing less well than abroad. Users who do not have a 4G/LTE handset may be motivated by Xiaomi’s generous prepaid MVNO offer to upgrade to the new Mi 4c. Looking further ahead, the offer—even though it is on an MVNO basis—can be seen in the wider context of new challenges to the MNOs’ traditional offerings. Another handset manufacturer, Ericsson, recently announced that it will be offering voice calling via its own Wi-Fi-only devices. While we are not privy to Xiaomi’s future plans, offering OTT voice services tied to their devices would be an even more decisive end run around the MNOs.

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