Wednesday, 25 March 2009

RACC set to launch MVNO service – Spain

Real Automovil Club de Catalunya (RACC), a Spanish auto club, plans to launch its MVNO services in Spain by the end of March. RACC, by utilising the network of Euskaltel, aims to attract around 40,000 subscribers within the first year of operation, 70,000 in the second and to exceed the 100,000 subscriber mark by 2011. Euskaltel is a telecommunications company headquartered in Derio, Spain.

According to Josep Mateu, Managing Director, and Inaki Prego, Head of RACC Movil, the company plans to invest approximately EUR 7.9 million (USD 10.74 million) and generate revenues of nearly EUR 94.5 million (USD 128.48 million) in three years. The MVNO will use the mobile devices of Nokia, Sony Ericsson and HTC for its RACC auto club members. Other subscribers will have the option to subscribe to RACC Movil’s services by paying a EUR 30 (USD 40.79) fee.

Other planned launches by the MVNO include a loyalty points system, mobile phone insurance, international mobile device rental services, mapping applications as well as GPS devices. The charge for RACC’s GPRS service has been fixed at EUR 0.50 (USD 0.68) per MB. RACC also plans to launch a flat-rate tariff for the GPRS service by September.

For mobile calls, subscribers will be charged between EUR 0.05 (USD 0.07) per minute and EUR 0.28 (USD 0.38) per minute based on the duration of the plan. RACC also offers a single tariff plan of EUR 0.18 (USD 0.24) per minute, irrespective of the time of day or mobile network called. In addition, under the Family Savings Plan, RACC will offer 10%, 15% and 20% discounts (on the monthly subscription fee) to subscribers acquiring two, three or four lines, respectively.