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Free mobile network set to launch
Following on from the massive success of Skype – which introduced the concept of free telephony to the masses – a venture called Blyk intends to apply the same principle to mobile phones.
The company describes itself as a "pan-European free mobile operator for young people, funded by advertising."
Until recently, the official launch was slated as being in the UK in mid-2007. But it now looks as if the launch is imminent. So that just leaves the question as to who will actually host the network for Blyk?
The smart money, apparently, is on FranceTelecom/ Orange. Particularly since Orange took over supplying 2G connectivity to Hutchison 3, from the company's former 2G partner – O2. There's an outside chance that T-Mobile might just be in the running for the Blyk contract, though.
The million dollar question is – "Can Blyk pull this off?" Well, the company certainly has good Scandinavian connexions. It was co-founded by Pekka Ala-Pietilä, a former president of Nokia, and Antti Öhrling, who is CEO with the Contra Group, an ad agency.
While Blyk claims this virtual network has "been in development since January 2006 and is backed by individual private investors and Sofinnova Partners," the actual idea isn't new.
Sir Richard Branson's Virgin reputedly looked at exactly the same model for a virtual network in the USA. Once again the target was going to be students who didn't mind receiving adverts in return for free texts and calls.
To Mobile Insight, however, there's one very serious hole in Blyk's business model. If its subscribers are such cheapskates that they'll do almost anything to get free calls, what are they going to buy if you advertise to them?
Only time will tell if Blyk can get the idea off the ground.
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