Orange diversifies model with BIC and Blyk low end moves
Published: 3 July, 2009
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Like many operators in saturated markets, Orange is looking to diversify its business model to appeal to wider user bases. This week it is paying attention to the low end, launching low cost services under different sub-brands in Spain and the UK.
In Spain, Orange has announced its BIC service and phone, already offered in France. This is a prepaid-only offering, with an entirely separate brand from that of the parent (though the handsets are orange in color). The BIC phone is an ultra-simple phone that is ready to use when purchased in a supermarket or other retail outlet, with SIM card inserted and battery charged. It is designed for voice and SMS only and costs just €29 (complete with 20 minutes of call time included), though unlike disposable cellphones, it is fully rechargeable.
The BIC phone has achieved sales of over 110,000 units since it was first launched in France in August 2008 and is aimed at occasional users and older people, and others who just want basic functionality and simplicity of usage.
In the UK, as expected, Orange has become the first cellco partner for Blyk, the ground breaking MVNO that offers free calls and texts in return for its customers - mainly 16- to 24-year olds - agreeing to receive targeted adverts.
Despite moderate success in the UK, with about 200,000 sign-ups, Blyk has struggled to scale up to the levels of uptake that would attract most advertisers. Recently, it pulled back on plans to extend its direct-to-consumer business around Europe, saying this had been a "proof of concept", and instead said it would partner with larger operators, giving them a white label service to promote to the youth market without diluting their own brands. Blyk may also target emerging markets such as India.
Orange should start offering the Blyk service over the summer and is likely to keep the package details much the same, giving users €20 worth of voice and SMS credit in exchange for receiving advertising on their handsets. The cellco already hosts Blyk on its network under an MVNO deal.
Blyk's nine-strong sales team is said to be joining Orange's salesforce although the smaller firm will retain a core team to negotiate further operator partnerships and other business deals internationally, according to New Media Age.
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