Ads to fund 'free' MVNO

A revolutionary new MVNO offering free ad-supported voice, text and content will launch across Europe next summer. 'Blyk' will be available exclusively to 16 to 24 year-olds and will go live first in the UK from June. The Helsinki-based company, founded by a consortium of mobile and advertising execs, believes its radical business model will appeal to price-sensitive youngsters open to a ‘dialogue’ with marketers.

Jon Fisher, marketing director of Blyk, said: “We’re positioning this as a one-to-one media channel. By signing up for Blyk, consumers agree to take ads so it’s effectively 100 per cent opt-in. We’re giving brands a chance to start a dialogue with consumers and, from our early discussions, they’re very keen to do so.”

Details are scarce at this early stage. Blyk will not confirm which advertisers it has spoken to, the maximum allowance of ‘free’ text, voice and content, or which networks it will lease capacity from.

However, the company is certainly hitting a ‘sweet spot’ from the mobile content industry’s perspective, with interest in ad-funded products on the rise and voice tariffs falling across mature mobile territories.

Fisher confirmed that content would form a key part of the Blyk offering: “There will be a Blyk portal and, where we can, we will seek to make content free.” He also confirmed that users would be able to browse off-portal content services too.

Although the Blyk business model is a radical proposition, there are smaller precedents for it. In Russia, Gigafone is offering free calls and texts for smartphone users when they opt in to receive targeted advertising, while companies such as Amobee, Actionality and Rhythm Media are embedding subsidised content with ads.

(c) Mobile Entertainment