Wednesday, 9 September 2009

Lycamobile pre-pay pays off – United Kingdom

It has become the norm for MNOs to focus on high ARPU levels and reduced levels of churn. Their method for doing this for several years has been the 18 month and 24 month contract, potentially with a Wii or TV chucked in for new subscribers. With UK consumers feeling the pinch from unemployment, a lack of credit and rising energy bills, a mass move to pre-pay has been suggested by Lycamobile.

Lycamobile Chief Executive Officer, Milind Kangle commented: “In these uncertain economic times consumers are increasingly looking for flexible products without long term financial commitments. Lycamobile’s ultra low price, high quality, service fits perfectly with the demands of our cash conscious consumers, a key reason for the momentum in our growth rate.“

Figures back up this statement with the MVNO reaching its first year target of 1.2 million subscribers. Lycamobile has also stated that 80% of calls made from its network terminate at international destinations, validating its claim of being the UK’s leading ethnic MVNO, or at least international calling market MVNO.