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story category Blyk's Success Leads to Expansion
Ad-based phone service seems to work
(old news - 09:39AM Saturday Jun 28 2008)
tags: business · wireless · world · UK
Blyk is a UK MVNO which offers no-cost and low-cost mobile phone service with revenue generated from advertising to the customer via the mobile phone. The company has been highly successful, gaining over 100,000 customers in less than a year. This can be compared to Helio which launched in 2005 and has only 170,000 subscribers. Blyk has done so well in the UK that the company has announced plans for expansion into Germany, Belgium, Spain and the Netherlands. This expansion is expected to take place before 2010. Mobile advertising hasn't really taken off in the U.S. but this model (which is targeted to a youth consumer base) may be something for carriers here to watch.

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Forums » Blyk's Success Leads to Expansion
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Post a:
Joe12345678

join:2003-07-22
Des Plaines, IL

We will need free incoming texts + free data zones for this

We will need free incoming texts + free data zones for this to work in the us.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: We will need free incoming texts + free data zones for this

if companies were smart here they'd already be doing this. The ads allow the customers to get free minutes and texts. Which to some could be a huge trade off.

Smith6612
Premium
join:2008-02-01
united state

Re: We will need free incoming texts + free data zones for this

My free minutes come on the weekends.

gomer1701ems

join:2001-08-23
Minneapolis, MN

Re: We will need free incoming texts + free data zones for this

And after 9 PM, for some folks.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable


1 edit

Re: We will need free incoming texts + free data zones for this

your phones may do that but Virgin Mobile here does not do that. I know a lot of parents that would give these phones to their kids just to stay in contact with them without buying minutes all the time or putting them on their contract plans.

This would take off in the US even though you think it wouldnt.

Edit Add: UK is not a pro-credit country. They enjoy their prepaid services and not having a credit check for everything they do. A good amount of their cell phone companies pride themselves on Prepaid and its their major choice over there.
voipdabbler

join:2006-04-27
Kalispell, MT

EU developments to watch

It will be interesting to see how long this model can be sustained if the EU does allow cellular carriers there to charge for all incoming voice and data, following the US model. With the recent public comments that EU regulators may allow their carriers to follow the US model to avoid raising fees again, this type of ad-driven model will become more expensive. Whether the new fees may kill it, who knows? It will depend how much they eat in to profit margins. Plainly, if it's too great the restructuring of EU cellular billing may make a totally-free service untenable there.
George Kidd

join:2001-08-09
Vancouver, BC

Brain Washing

Sounds to me like the Tobacco industry all over again, preying on the young and innocent, which don't know any better.

jjoshua
Premium
join:2001-06-01
Scotch Plains, NJ

Highly successful?

Using the # of customers as a measure of success? Kind of like the dot com boom?

The only measure of success should be the net profit.

james

join:2001-02-26
antarctica

Re: Highly successful?

said by jjoshua See Profile :

The only measure of success should be the net profit.
That wouldn't be a good indicator in the case of startups who have to re-invest most of their profits in order to grow. I think in this case, number of customers is the closest thing to a reliable indicator of success that there is. That combined with the fact that they haven't gone out of business yet.

peter_m
Premium
join:2005-07-13
Canada, QC


1 edit

Will never work

Why would I want to be disturbed by SMS, voicemail or screen adds when I am busy living my life???

There was such a project in Canada and it failed. It was called Espion. You had to listen to voice-mail adds to get a rebate on your minutes or free stuff. Why why why???

Life is too short,
Peter
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Will never work

this is by text its just short messages. Plus its cheap for someone that only wants the phone for ER uses in their car.
Forums » Blyk's Success Leads to Expansion


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