Research Notes


It’s now been confirmed that Stelios Haji-Ioannou and EasyGroup are launching a Discount MVNO, using the Danish concept as model for his newest venture.

However Richard Branson of Virgin/Virgin Mobile quickly replied that he doesn’t believe in EasyMobile’s concept, a concept which has been proven over the last two years in Denmark, and now is taking it’s toll on the Mobile Operators in Norway and Finland.

Mr. Branson states:
Stelios is “too late” to enter the mobile telephony market and that “there’s no crying need for what he’s thinking.”

Mr. Branson himself is planning a EURO 1.5bn IPO of Virgin Mobile.

Strand Consult believes that Mr Branson should read Danish Newspapers; Telmore (largest Danish Discount MVNO), is comparatively more successful in Denmark than Virgin Mobile in the UK.


Telmore, 2003:
450.000 customers, Turnover estimated EURO 50 mill, Profit EURO 4.6 mill,
Price paid by TDC (largest Mobile operator in Denmark) EURO 54.7 mill.

Virgin mobile, 2003:
3.6 mill customers, Turnover estimated EURO 5-600 mill, negative profit.
Value according to Virgin EURO 1.5bn.

CBB, 2003:
190.000 customers, Turnover estimated EURO 20 mill, Profit EURO 2.6 mill,
Price paid by Sonofon (2nd largest Mobile operator in Denmark) EURO 17.5 mill

Discount MVNO’s, are web-based virtual networks that have few cost due to the fact that they do not have any physical stores, but utilize the internet as sales and distribution channel, and hence offer significantly reduced voice and text prices. Customers can only register online, receive the new SIM and use their own unlocked handsets. Most often they also pay online for their voice and text messages, although customers can also pay via SMS. All customer services are self-service, thus greatly reducing overheads.

Discount operators have caused the following in the Danish mobile market.

· The price of a mobile minute has in only 6 months dropped from 0.17 Euro to 0.09 Euro
· The price of an SMS has fallen from 0.07 Euro to 0.03 Euro
· The price of a subscription has fallen from 6.7 Euro to 0 Euro
· Mobile consumption has not risen during this period
· The last two years growth in the mobile market has been decimated

We believe that Stelios/EasyMobile will launch in the UK before the end of the year, and that EasyMobile will have success. EasyGroup have partnered with someone who knows about these things, and by adopting the business model proven to be successful by Danish Discount MVNO’s, achieve great success for themselves.
Read More about Discount MVNO’s (Discount Mobile Service Providers)

More information
“The Moment Of Truth” – A Portrait Of The Discount Mobile Service Providers Success

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