Three UK CEO, Robert Finnegan, and Vodafone UK CEO, Ahmed Essam (main pic) have put more flesh on the bone of the historic merger.

Both confirmed there will be no change to each operator’s pricing strategy and that a multi-brand strategy will continue with Vodafone and Three continuing under their own names .

No change to each operator’s pricing strategy and a multi-brand strategy will continue

Economies of scale will enable the UK’s new third network to bring 5G coverage to more than 99 per cent of the population by 2034 and similar geographic coverage by 2027.

They claim that the UK businesses’ digital transformation will get a boost with improvements to production efficiency from full 5G access while energy consumption will be reduced by enabling business to install more energy efficient 5Ge smart technology to reduce their emissions?

“The merger creates a third network operator with scale and creates more effective competition to the market leaders to become an even more effective challenger on home broadband, accelerating the availability of fixed wireless access to complement the UK’s fibre footprint” said Essam.

Both of the businesses will compete as usual on a stand-alone basis until the merger is complete. So customers should not expect any changes to their plans and prices, They have pledged continuation of support on social tariffs to ensure there are o price rises on these tariffs. In the contract-free market there will be no price rises.

Finnegan said he was confident the regulatory bodies would not stop the merger.

“Ofcom identified that investment is very important in the industry. We’re both investing more than we are generating and that is not sustainable. I think Ofcom and the CMA recognise that and that this is an opportunity to correct what is a dysfunctional market. This is a way of creating a really strong third player that has scale and is wiling to invest £11 billion which is way more than any of the other operators. And that’s got to be good for consumers, The devil is in the detail, We will be engaging with the CMA in due course and listen to what their concerns are and move forward.”

this is an opportunity to correct what is a dysfunctional market.

Added Essam added: “If you reflect on where the market was five years ago and where we are today clearly it is a very different market. What materially changed is the MVNO market which is competitive. MVNO’s enjoy a market share of more than 16.5 per ent. It is very different from the position five years back. This changes the competitive landscape and makes our case very strong and which will bring our transaction over the claiming weeks to the CMA”.

The Three China connection is not seen as an obstacle for security concerns as it did with Huawei.

“We work with the security bodies and they have no concerns about our operations. This will be Hutchison taking a 49 per cent stake. So we don’t see an issue here”, said Finnegan.

Essam emphasised that both networks are already heavily regulated in the UK and adhere to strict compliance on customer data.

“We both abide by customer privacy regulations, Clearly the deal will be subject to national security approvals. We are on a good position to take this case to the security agencies and bodies”

Respondents were asked:

 ‘In 2023 mobile providers will start to switch off their 3G networks to focus on 4G and 5G. Were you aware of this before today?

Fifty one per cent said they didn’t know. Around 27 per cent of people surveyed knew 3G was for the chop.

Networks will switch off 2G and 3G over the next decade to free up spectrum for 4G and 5G.

EE also plans to start its switch-off in early 2024 Three aims to switch off its entire 3G network by the end of 2024. O2 has not yet announced plans but the Government has requested all 3G networks to be closed by 2033.

Vodafone’s 3G shutdown started this month and will apply to its MVNOs including Lebara Mobile, Asda Mobile, Talk Mobile and VOXI,

“3G is used by more than 30 million people. Our research shows more than 15 million aren’t aware it is being phased out or how this will impact their ability to get online. Focusing investment on 4G and 5G networks is a sensible move, However it’s important to make those relying on 3G networks are not caught unaware said uSwitch head of commerce; for broadband and mobile Ernest Doku

Plusnet Mobile sold just SIM-only plans. It is closing down so that BT’s mobile offerings are all consolidated with EE. When Plusnet Mobile’s consolidation into EE is complete, current Plusnet SIM customers will no longer be able to make calls, send texts or access the internet but must witch to an alternative provider.

They have two options; either going with a deal offered by EE, or comparing other deals available. Customers will not need to pay an exit fee for changing providers in any case” said uSwitch mobile expert Catherine Hiley.

“EE is offering Plusnet Mobile customers an exclusive 30-day SIM for £8 per month as an incentive to remain with the provider, but you’ll need to check that it comes with enough data to suit your needs.

“Protecting consumer interests should be a top priority for EE and BT, so it’s important customers receive clear communication and do not feel pushed into accepting the EE deal. For those intending to switch, they can keep their existing number by texting PAC to 65075. This is a quick and easy service where your provider will send you a code, which can then be given to your new provider, allowing you to keep your existing number.”

]]> https://mobilenewscwp.co.uk/news/article/bt-will-shut-plusnet-mobile-consolidate-ee-brand/feed/ 0 https://mobilenewscwp.co.uk/news/article/twelfth-sim-local-airport-store-takes-off-vienna/ https://mobilenewscwp.co.uk/news/article/twelfth-sim-local-airport-store-takes-off-vienna/#respond Fri, 19 May 2023 12:16:29 +0000 https://mncwp.tailrd.cloud/twelfth-sim-local-airport-store-takes-off-vienna/ Sim Local, which clams to be the largest seller of SIM cards in the UK travel market, has opened its newest store at Vienna Airport. The store is Sim Local’s 12th, and will provide a choice of local SIM cards from Vienna networks eety, Drei (Three) and Lyca to international travellers and a range of

Sim Local, which clams to be the largest seller of SIM cards in the UK travel market, has opened its newest store at Vienna Airport.

The store is Sim Local’s 12th, and will provide a choice of local SIM cards from Vienna networks eety, Drei (Three) and Lyca to international travellers and a range of branded accessories.

Ian Rankin, Chief Commercial Officer, Sim Local said:“ Our retail footprint is continually growing, and we are delighted to be working with Vienna Airport. We’re also extending our global partnership with Lyca and cementing our Hutchinson 3G relationship by carrying their products in this new location.”  

 Philipp Ahrens, Senior Vice President Center Management at Vienna Airport added:  “Extending our retail offering to include their local SIM cards will be valued by the international travellers arriving in Vienna.”

Other Sim Local stores are in Athens International airport and Brussels.. Sim Local also operates a network of vending machines in European airports including Heathrow, Gatwick, Brussels, Dublin and Copenhagen and works with affiliate partners such as WHSmith and InMotion in airports.

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The Wizz eSIM service is claimed to be the first offered by a European airline. It incorporates eSIM Go’s Powered by Breeze into the Wizz Air app and requires no technical involvement from the Wizz Air.

“Wizz Air has a reputation for getting to the market with innovative ancillary offers, which makes them the natural champion for easy access, low-cost, eSIM-enabled mobile data services,” said Zacchary Couldrick, CEO of eSIM Go.

“Travellers want mobile data and eSIM offers more convenience, choice and value than paying roaming charges or buying local SIM cards. The launch of Wizz eSIM is a testament to the flexibility and scale of our platform and the turnkey nature of the Powered by Breeze commercial model.”

Wizz Air will offer hundreds of data eSIM bundles in target destinations across North Africa, the Middle East, and Asia where roaming charges for European travellers are highest.

“The aim is to connect customers with the best rates and services. ”eSIM Go’s solution allows us to serve passengers with competitive data packages, as well as catering to the growing demand of data access wherever they travel,” said Dora Farkas, Wizz Product Portfolio Manager

Rachel Swift, Tesco Mobile Chief Customer Officer, said:

“For the whole of 2023, our customers can continue to tap into their UK allowances for free in 48 destinations in Europe and beyond .”

Tesco Mobile customers can activate a ‘safety buffer’ directly through their account that can be set as low as £0 to avoid bill shock once they exceed their package allowance.

All pay monthly customers who joined Tesco Mobile or upgraded before June 16 last year will be able to continue using their UK data allowance at no extra cost in 48 destinations in the EU and beyond, until they choose to upgrade.

MVNO Tesco Mobile, which uses the O2 network.  has around five million users

Unified comms and mobile services convergence provider Tango Networks must pay an ex-account director a total of £71,441 in damages and compensation for unfair dismissal

Mark Jones (61) won his Industrial Tribunal cases against Tango Networks and is to receive a basic award (£1,614), a compensatory award (£27,193.05) , compensation for breach of contract (£1,578.52), injury to feelings (£20,000), interest on injury to feelings award (£3,295,45), grossing up for tax payable on the award (£17,869,34).

Jones worked for Tango for two years from January 2019 as a channel account director with three main clients (Telco Switch, AVC1 and Redcentric). Had he sold 13,000 SIMs he would have earned £40,000 commission. But he did not earn any commission during his time with Tango

Tribunal heard Jones had not sold enough SIMs to make any commission and was poor at forecasting how many SIM sales a partner seller would make. There was a lack of structured account planning and evidence of day-to -day business.

Tango wanted to appoint another salesperson and located a middle-aged candidate through LinkedIn. The Tribunal heard manager Philip Hesketh “wanted someone younger for the role” and “who was ideally female”.

Hesketh told colleagues he had two new candidates and wanted to make an offer to each “on the provision we move Mark on very early in Jan 2021”

Hesketh said in evidence:

‘A lot of the candidates we were interviewing were a mirror image of me, white middle-aged men and that it was a shame that we did not attract more diversity into the application process”.

The Tribunal heard that Hesketh told colleagues he didn’t want a team of ’50 odd year old balding men and ideally a woman’.

The Tribunal, led by Employment Judge Miller, concluded

“We find that there was a firm plan to dismiss the claimant and to replace him with another candidate. The respondent planned to do this before the claimant had two year’s service so they could do it quickly”.

MVNOs have proven themselves to be nothing if not innovative and resilient.

It’s written in our DNA. Historically, competing for market share in a highly competitive industry with mobile operators has given rise to a slew of pioneering initiatives.

MVNOs boast an impressive roll call of achievements that have changed the industry and shaped what consumers expect from their mobile provider – from being among the first

to launch unlimited data offers in Europe to leading the way with mobile money initiatives. As the old adage goes, “necessity is the mother of invention”.

Traditionally, MVNOs have developed their businesses to serve customers that MNOs do not prioritise – typically highly price-sensitive, low-ARPU users.

And differentiating on price and services has helped MVNOs thrive in the UK, one of the most sophisticated and competitive mobile markets globally.

According to figures from last year, it is estimated that there were 15 million subscribers to MVNOs in the UK alone.

But COVID-19 has dramatically disrupted the industry, presenting a major new innovation opportunity for MVNOs: targeting a wider, more mainstream audience.

The pandemic has expedited the emergence of a new set of consumer mobile behaviours and values.

Customers expect more diverse, differentiated and value-added services – a shift driven by increased reliance on smartphones for every area of personal and professional lives over the turbulent last 18 months. And it’s a vacuum that MVNOs are primed to fill.

In 2020, lockdowns contributed to a staggering 30 per cent increase in mobile data consumption worldwide.

In Ofcom research, meanwhile, the average length of a phone call was reported to have increased substantially.

Changing relationship

The upshot is that people’s relationship with their smartphone and their mobile provider is changing, fast.

While price will always be a critical factor in consumer decision- making, it’s no longer the be-all and end-all.

Customers are instead craving positive, digital-first experiences – and are prepared to take decisive action to find the provider that fits with their view of the world. Mobile services are becoming anything but commoditised.

Make no mistake: the customer experience is the new frontier for mobile providers.

In times of disruption, customers re-evaluate the experiences they receive from brands, and expectations are sky-high thanks to the largely frictionless experiences provided by the likes of Netflix, Amazon and Apple.

The mobile experience has to follow suit, or subscribers will vote with their feet.

Service providers that can deliver diverse multimedia experiences that put changing consumer expectations first will be in the driving seat.

Digital first

Key to delivering a new and customer- centric experience is adopting a digital-first mindset that pervades everything a mobile provider does.

Ironically, the mobile telecoms industry as a whole does not have the strongest track record of reacting quickly to consumer preference and overhauling the experience accordingly.

MVNOs, however, with their proud tradition of innovation and ability to react fast are in pole position to adapt quickest and capture market share.

That’s exactly why we have invested £250 million over the next three years into transforming Lycamobile into a digital service provider.

There is a major opportunity to build on our heritage as a low-cost international-calling network to focus on developing a new set of differentiated products, content and services that better reflect consumers’ changing needs, strengthening our appeal to a wider cross-section of mobile subscribers.

That transformation is root and branch. Differentiation is not simply a case of landing content deals and upping the marketing budget; digital-first innovation is built on the latest technology platforms, progressive industry partnerships and sound strategic vision.

Times are changing and so are customer expectations. The mobile market is ripe for disruption and MVNOs are in prime position to capitalise on the market opportunity.

After all, our entire success has been predicated on our ability to move with the times.

Navanit Narayan is CEO of Lyca Group, owner of MVNO Lycamobile, which focuses on low-cost international calling

In April, Lyca Group appointed Navanit Narayan as its new CEO.

He joined the business last October from Vodafone Idea, having previously worked for Idea Cellular and Nokia Siemens Networks.

Narayan has revealed that Lyca Group wants to raise more awareness of its offerings beyond the mobile business, acting as a ‘digital player’ across areas including entertainment, travel, healthcare, media, technology, financial services, marketing and hospitality (see Mobile News, April).

But how does mobile still fit into the Lyca Group’s plans, namely its MVNO Lyca Mobile? Mobile News spoke to Narayan to find out more about the company’s plans for its mobile offering.

What is your new role and what does it cover?

Navanit Narayan: I’m chief executive for the Lyca Group. Mobile is the largest part of the business, but we have other interests as well. I look after all the businesses within the Group, including financial services, travel, entertainment and media.

How can you use your earlier experience from Vodafone at Lyca?

I think it’s the scale we can bring, and how we can scale up and replicate our success in other areas of the business – and really how we can bring the service offering to customers. If we are able to bring our businesses together and offer a complete suite of services to our customers, I think we have a far better proposition.

How has Lycamobile been able to adapt to the pandemic?

Obviously the pandemic has been difficult for us, because in most countries there’s been lockdowns where stores are closed. But in some markets, our products are available to buy through multi-brand grocery stores where our customers can pick up a SIM. It feels like we have withstood the worst of the lockdowns across our operations. We’re seeing a bit of growth in some markets such as the US, which has picked up pretty well as vaccinations have rolled out and the economy is picking up. We’ve seen a similar thing here in the UK and expect the same in Europe, but we will of course continue to be cautious with our customers in relation to the pandemic. During the pandemic we’ve been able to focus on our digital marketing, looking a lot more at analytics than ever before – and this has helped us to grow our digital offerings.

What impact has the pandemic had on the business? 

The impact has been that digital adoption for customers has been far better. I think what would have taken a few years before has happened now because of the pandemic.

What challenges have you faced during the pandemic? 

The sad part is that I’ve been here now for a full two quarters and I’ve not been able to visit our different markets, when I used to travel to at least two geographies a week prior to the pandemic. No matter how much we use digital assets to reach out and talk to the team, unless you go out and see for yourself, you won’t understand the market as much. In the pandemic, we’ve had to adapt to using technology such as Teams, but this has been a positive in that we can get people across the globe together virtually to have conversations that weren’t happening before. There has been a lot of learning on how to work in this environment.

How have your operator partners supported Lycamobile?

I think all of our MNO partners, including O2 in the UK, plus Vodafone and Telefonica in other markets, have been very supportive of us during these tough times in terms of product offering and being competitive in the marketplace.

What’s your strategy for Lycamobile’s MVNO business?  

As an MVNO business, we have realised that we were so focused on the ethnic, migrant and expat segments, and we need to go beyond that. What we’re trying to do now is working on the transformation of the business so we have a better play in the national market and create products that are relevant. We want to get ourselves out into distribution and get the brand recognised more widely. We also want to grow into new geographic markets.

When will Lycamobile launch in more countries? 

I’m expecting this year that a few more countries will come on board. We’re in the advanced stages of entering three to four, and I’m confident we’ll be in those markets this year.

Which markets are you looking to enter? 

We’re always looking to expand in Europe, but there’s a big focus on Africa and Latin America, as we’ve mostly not been in these markets. I’m hoping that we can get our first Latin American country on our list this year. The markets are there for us to get into.

How can MVNOs bring innovation to the industry? 

There are a couple of ways we can do this. One is that we can go more digital, and MVNOs that are going digital are the ones that grow because customer profiles are changing to become oriented towards this market. The second way is through our service offerings, with MVNOs having an agile set-up. We have to see how we can create offerings that mean we provide a larger suite of services; we want to give our customers more than just mobility.

Do you have plans to drive 5G in developing countries and new business segments?

We have agreements with our MNO partners that as they launch 5G, we are able to offer the technology to our customers. We’re also looking to get into the enterprise side of 5G. This is something we have not yet done, but we are looking at the opportunities this can bring.

What are Lyca Group’s targets?

We are in 23 countries as an MVNO currently and want to take this number up to 30. We recently got a national telecoms licence in Uganda and we will be investing significant money to compete against the two big players for market share; it’s a very good market because it’s growing. From there, we want to expand into other parts of Africa, which is a continent we feel has a lot of potential.

It’s been a seismic month for operators and retailers, with a one-two punch of events set to shake up the sector.

First, supermarket retailer Asda unexpectedly revealed that it would transfer its Asda Mobile MVNO from EE to Vodafone, returning to the telco with which it launched the service in 2007  and subsequently left in 2014.

Then, EE announced that it would follow in O2’s footsteps and not renew its contract with Carphone Warehouse – yet another major blow for the retailer following its closure of its standalone stores in April.

Graystone Strategy’s James Gray, who has had a long-spanning career across operators, the retail sector and MVNOs, spoke to Mobile News about the takeaways from these two events.

As a former head of wholesale marketing at Vodafone, he helped launch Asda Mobile, and also headed up marketing for the launch of Sainsbury’s MVNO in 2013.

He started his career working for Dixons mobile retailer The Link in the 90s, and returned to work as a consumer director at Carphone Warehouse Ireland and its MVNO iD Ireland in 2015, before moving into various consulting roles.

Carphone’s raison d’etre diminishes

With the loss of its retail stores, and two operator partners, it’s not clear who Carphone now serves, says Gray. “Carphone largely traded off the back of offering independent advice,” he says. “There’s definitely a group of consumers that values that proposition. The problem is, when you’re offering only one network [Vodafone] and a handful of MVNOs, you no longer have those credentials.

“On top of that, Carphone has moved away from the high street, unlike the competition.”

Carphone may have to sell MVNO iD Mobile

If Carphone has a jewel in its crown, MVNO iD Mobile is it. Having passed a million customers in 2019, it’s one of Carphone’s only
success stories in recent years.

“iD largely acquired customers through the physical channel, which has been significantly reduced,” says Gray. “It’s possible that Carphone would consider selling the family silver.

“It has form for selling MVNOs: it sold Talkmobile to Vodafone, so it’s something it’s comfortable with. iD is on Three’s network and [Three CEO] Robert Finnegan has recently talked about consolidation, so increasing his customer base by 10 per cent may appeal if the price is right.”

However, if Carphone is committed to mobile – which it is, according to CEO Alex Baldock at its most recent earnings call – it needs to work out a way to continue growing iD primarily through digital means.

Asda’s announcement is a surprise, but makes sense

While the Asda-Vodafone news caught Gray unawares, he sees why the retailer is looking to enhance its mobile offering.

“It’s not a surprise that Asda is reviewing its options because it’s never really been able to punch at its weight level. It’s got 18 million retail customers per week, yet its MVNO base is significantly smaller.”

Gray highlights Tesco for comparison: not only is its retail base about twice that of Asda, its five million-plus mobile customer base
dwarfs Asda’s – part of which is down to Asda still only offering pay-as-you-go (PAYG) SIMs.

“There is talk of new propositions and digital platforms [on Vodafone’s network], which is probably what Asda needs to drive its business harder. The biggest challenge it needs to address is making mobile relevant to its retail shoppers.

“Tesco has done that very well. If Asda can make that link combined with the additional digital tools, it could be quite an exciting time in the market.”

The fact that Asda is still PAYG-only looks to have played a role in its decision-making. “When you look at the market now, there’s a
swing towards 30-day SIM-only propositions, and they need to be going in that direction,” says Gray. “When it launched, prepay was
about 60 per cent of the market and now it’s in the 20s, so it definitely needs to move away from it – and I’m sure that would have been a criterion for discussion with new partners.”

Asda should anticipate losing customers

When MVNOs migrate, it tends to give rise to conditions for customer loss. “In telling customers there will be a change, you wake them up and make them have a look around,” says Gray. “There are plenty of strong deals around, including from Vodafone itself with VOXI.”

Additionally, signal strength might change drastically for some customers depending on location. “There are customers on Asda
Mobile who are enjoying four bars of EE coverage and may not get that on Vodafone; that will trigger a review in their heads.”

Again, as Asda is PAYG-only, the company doesn’t have all of its customers’ details, which makes communicating the transition
harder and may fuel negative reactions down the line by surprised users.

However, these hurdles are a guarantee for any MVNO migration, says Gray. “If you only lose 20 per cent of your base in a migration, you would probably be doing quite well in terms of managing attrition.”

It’s up to Asda to calculate whether or not the risk of migration can be offset by the allure of an enhanced experience that can attract new users.

It’s a headache for EE

While Asda Mobile is by no means the UK’s biggest MVNO, EE has still lost a chunk of its customer base to a rival.

This adds to the impending loss of Virgin Mobile; whether that’s to Vodafone or O2 remains to be seen, but it’s something EE has to prepare for and divert resources that would otherwise be used to grow its business.

“In losing an MVNO customer, there will be work involved supporting migration and managing a transition,” says Gray. “That will take up resources and in the case of Asda is something that probably wasn’t planned for. It’s all business noise for zero benefit that will be a distraction.”