Blyk

Blyk partners with NSN to hasten European expansion

Paul Rasmussen — Fri, 24 Oct 2008 12:25:36 -0400

Having launched its ad-funded MVNO service in the UK more than 12 months ago, Blyk has agreed to a deal with Nokia Siemens Networks (NSN) that will see the infrastructure supplier host the Blyk network as it expands into the Netherlands and Belgium.

Under the two turnkey service deals, NSN will provide the infrastructure, prepaid charging and messaging systems, software and operations to Blyk as a fully managed, hosted service to Belgium and the Netherlands. The hosting service is delivered remotely from the NSN hosting centre in Vienna.

Blyk, which uses the Orange network in the UK, and has chosen Vodafone as its Dutch partner and Mobistar in Belgium, has recently confirmed plans to expand its services into Spain and Germany.

Over 200,000 UK customers have signed up to Blyk in its first year, which puts it well ahead of its internal targets, and more than 100 different brands have now run more than 1,000 advertising campaigns. While some observers remain sceptical about the published success of the company, handset vendors and major operators are thought to be keeping a close eye on the ad-funded business model, which in Blyk's case also has the company owning a good portion of its own infrastructure despite being an MVNO.

For more on this story:
- go to telecoms.com and Mobile Europe

Related articles:
Early success for ad-funded mobile network. Blyk story
UK operators cooperate over mobile advertising metrics. Mobile advertising story

Blyk expands further into Europe

Paul Rasmussen — Wed, 25 Jun 2008 06:25:59 -0400

Having already launched its ad-funded mobile service in the U.K. and The Netherlands, the MVNO Blyk has announced it will expand further during 2009 into Germany, Spain and Belgium. The company, which offers a quantity of free calls and texts to teenagers in exchange for sending adverts to their mobile phones, claims over 200 brands will have used the service by the end of this year with an average response rate of nearly 30 per cent. Blyk's CEO and co-founder, Pekka Ala-Pietilä said, "There is a great opportunity for Blyk in these new European markets. Our research shows that young people in Germany, Spain and Belgium are interested in the Blyk proposition because they want to interact with brands they like in exchange for free communication. Our success in the U.K., illustrated by robust member adoption, has proven that Blyk is a youth media that works."

For more on this story:
- go to Cellular News

Related stories:
Early success for ad-funded mobile network. Blyk story
Ad-based mobile carrier Blyk launches. Blyk launch story

Early success for ad-funded mobile network

Thu, 01 May 2008 06:59:55 -0400

Blyk, Europe's first ad-funded mobile network, signed up 100,000 U.K. customers in its first six months of operation. An MVNO utilising the Orange network, Blyk offers free calls and texts to 16 to 24 year-olds willing to receive six targeted advertising texts or pictures every day. The rapid uptake of its service has meant that Blyk reached its first year target in six months.

For more information:
- go to Silicon News and Mobile Europe

Ad-supported MVNO ahead of user target

Mon, 28 Apr 2008 06:59:54 -0400

With over 100,000 signed-up members to its MVNO service, U.K.-based Blyk is claiming to be six months ahead of schedule since it launched in September 2007. The company says that the ad campaigns that fund the service--Blyk gives its customers free texts and minutes every month in return for receiving up to six advertising messages per day--have generated industry leading average response rates approaching 30 per cent.

According to Shaun Gregory, CEO, in the first six months Blyk had built up a deep knowledge of its users which has now exceeded many established youth media players. "Young people have embraced Blyk because it makes phone bills and contracts a thing of the past. We believe that communication should be free, like most other forms of media in the U.K." Blyk plans to launch in the Netherlands in the second half of 2008 followed by other European markets and has recently attracted new investors Goldman Sachs and Industrial and Financial Investments Company.

For more on this story:
- read Cellular News

Related stories:
Ad-supported MVNO Blyk premieres in UK. Blyk article
Ex-Nokia president launching ad-funded MVNO. Blyk article

Blyk struggles to gain an audience

Mon, 25 Feb 2008 06:59:56 -0500

Having been applauded at launch for its innovative idea of an ad-supported MVNO, Blyk is coming under increasing scrutiny by potential advertisers as the company fails to attract the anticipated user base. Given that media buyers think in terms of millions when it comes to new (digital) media, the 30,000 reported Blyk users must look somewhat slim--although the company insists that it's on target to hit 100,000 by this September. However, critics are pointing to the issue of the SIM-free handsets that Blyk sells. These units cost anywhere from €50 up to €370--the kiss of death for the average Blyk target audience of 16-24 years who generally expect a free, subsidised handset. There are also rumours that kids are buying into Blyk but then turning off the advertising messages which they are supposed to opt into. Certainly, every move that Blyk makes is being closely followed by existing mobile operators. The thought is that, if the ad-supported model works, then the larger operators will quickly steal the concept and offer the same deal to their own customers.

For more on this story:
- read NewMediaAge and Techcrunch

Mobile ads really clicking, claims Blyk

Mon, 10 Dec 2007 06:00:00 -0500

While the launch of ad-funded MVNO Blyk was greeted with scorn by many within the telecoms industry, the company is claiming record click-through statistics after only two months of operation.

Given that Blyk has specifically targeted university students with its offer of free calls in return for receiving mobile advertising, then a high click rate is to be expected. However, the company is claiming up to 43 percent of its customers are clicking on ads, as against Vodafone's mobile Internet reporting a click-through rate of 3.5 percent, and PC Internet being just 0.5 per cent.

According to Blyk's UK sales director, Jonathan McDonald, it's simple logic: "We have a database of 100 percent opted-in people who have signed up knowing they will receive up to six advertisements a day. The advertisements are specifically targeted to their preferences, which they have stated in advance."

McDonald maintains that industry comments suggesting that rates would fall as the novelty for users wears off is overstated. "People who have written that have missed the major point; that every day our service is becoming more profiled to the user, so as it becomes more relevant to them, click through rates will go up."

For more on this:
- read Mobile News

Ad-based mobile carrier Blyk launches

Wed, 31 Oct 2007 07:59:55 -0400

Former Nokia president Pekka Ala-Pietilä and Contra Group chairman and CEO Antti Öhrling have launched an ad-subsidized MVNO called Blyk. The service has plans to become a "pan-European free mobile operator" offering subscribers free, ad-supported voice and text services. The service is restricted to 16- to 24-year-olds, no one older or younger may sign up for the service, and users who turn 25-years-old need to start paying for the service.

Blyk users agree to receive six text messages a day from the MVNO, in return, they are allotted 217 free text messages and 43 minutes of voice time per month, with the option to pay for more. Data usage is billed at 99 pence/minute.

For more on the MVNO:
- read this press release