Sunday, 11 November 2012

USA MVNO profiles

Thursday, 13 September 2012

Virgin and Turkcell in mobile deal talks - sources (Turkey)

By Evren Ballim

ISTANBUL | Wed Sep 12, 2012 6:25pm BST

ISTANBUL (Reuters) - Virgin Mobile is in talks with Turkey's biggest mobile phone operator Turkcell about establishing a mobile virtual network operator (MVNO) partnership in the young and fast-growing market, sources told Reuters on Wednesday.

Virgin Group confirmed it was having "preliminary discussions" with various parties in Turkey but declined to comment further. Turkcell said it was open to partnerships in the field but gave no further details.

Virtual operators do not own the networks they use to provide communications services.

"Virgin Mobile wants to become a mobile virtual network operator in Turkey, so they have been talking to companies in the market. They have reached a certain level in talks with Turkcell," one source close to the matter told Reuters.

At 75 million and growing, Turkey's population is set to overtake Germany's, currently the largest in the European Union, by 2025. Per capita income has nearly tripled over the past decade, though the crisis in Europe has slowed growth this year.

Its mobile penetration was 88.5 percent at the end of June with subscribers numbering 66.14 million, according to data from the market regulator. The rate is much lower than in European Union countries, where it can be as high as 170 percent.

"We continue to look at new opportunities across Central and Eastern Europe and the Middle East. Turkey is one of those markets we are analysing and we are having some preliminary discussions with various parties," said Nick Fox, director of financial communications for Virgin Group.

"We feel Turkey would be a great Virgin Mobile market."

There are currently three mobile phone operators in Turkey: Turkcell, Vodafone Turkey, and Turk Telekom unit Avea.

The head of Turkey's Information and Communication Technologies Authority (BTK), Tayfun Acarer, told Reuters Virgin Mobile had not yet filed an application to be an MVNO operator.

Turkey takes 15 percent tax on gross sales from both mobile networks and their mobile virtual network operating partners. Industry executives say that double taxation is pulling down already squeezed margins and preventing growth.

"Double taxation does continue to be an issue," said Virgin's Fox. "In spite of this we are looking at ways to make Turkey work as a market for a Virgin Mobile launch in the future. However there are no definitive plans at the moment."

(Writing by Seda Sezer; Editing by Nick Tattersall and Hans-Juergen Peters)

Monday, 10 September 2012

Ultra mobile poised to launch in US

The slogan is "Everyone's talking about ultra mobile".  Well they're not. Since FierceWireless ran a story last week saying Ultramobile is ready to launch across T-Mobile, nothing much else has been heard. Finding the site for the operation was not straight forward either, since a cyber squatter has residence over it, sporting the usual ads. At the correct site customers can only register to be notified of the launch ... so we'll standby too.

Wednesday, 5 September 2012

RadioShack Wireless - Brand venture rather than MVNO

Finally, something real to report about the RadioShack "MVNO". Leap Wireless and RadioShack today launch an MVNO venture of the Cricket brand via RadioShack. It is called "RadioShack No-Contract Wireless", not really a catchy name. Reports indicate that this is not a true MVNO as there is no minutes of use contract and the MNO is still dealing with the technical side. This includes billing and the subscribers will be owned by Cricket. So erm ... not much different to just selling the services of a carrier and taking a commission (this just means they get an ongoing commission rather than a one off sign up payment). 

Tuesday, 4 September 2012

Another Dutch SME MVNO, FirmTel is coming

The website is already live but there is no official announcement of its launch. Dutch Enterprise telecoms provider FirmTel, is about to launch commercial services over Vodafone's network. CEO, Cees Quirijns, is quoted by TelecomPaper as stating the operation is currently in testing and will take about 2 weeks to launch. 

Lycamobile USA and Canada

European and UK head quartered Lycamobile is about to launch operations in North America. As reported in the Financial Times, the European MVNO looks set to open its doors as what it describes the first full MVNO in the US and Canada. The FT quotes Milind Kangle, Lyca's CEO as saying: “As we enter the US we will double that. We will be the first full MVNO for the US, which is a better customer experience as we can make changes in seconds.”

For those not familiar with the operations, Lyca's routes are within cheap international calling targeting ethnic minority populations. At this point its not clear whether they will go after the Latin American population that is already targeted by TracFone, or if they will look more to the Asian markets. 

Thursday, 30 August 2012

CyCell launches OwnFone UK

CyCell has launched OwnFone, an MVNO targeting (but not exclusively) the worrying parents of children who need a phone but neither need or can be trusted with an expensive all out offer. The phones on offer are palm size and slim with the added benefit of being pre-programmed with a maximum of 12 numbers each of which gets its own button naming the call receiver. The idea is to provide a reduced risk handset to children and those who only want calling in an emergency. There is no texting and no Internet facility. 

Tuesday, 28 August 2012

Porto Seguro M2M MVNO in Brazil goes live

Porto Seguro Telecom, a joint venture between the insurance firm Porto Seguro and MVNE Datora Telecom, has launched services in Brazil. The service is initially targeting 2000 M2M in-vehicle subscribers for its vehicle tracking service, with the hope of expanding this to 450,000. As reported by RCR Wireless. 

Friday, 24 August 2012

3 Austria to welcome MVNOs (for Orange deal)

The EU are reviewing documentation submitted by 3 Austria detailing how the MNO will provide access to its network for new Austrian MVNOs. The move comes as part of a regulatory appeasement process whereby 3 (Hutch) wants to acquire the bigger network, Orange. This would take the Austrian down to three MNOs from the current 4.

The soon to be launched MVNO Directory 2012 shows that there are 6 operations active within the MVNO market in Austria, 3 of which run across Orange's network. 3 hosts none. There are also a further 7 branded operations with the appearance of being MVNOs, but are actually MNO operations by another name. Including Yesss!, a brand of Orange being sold off to A1 (MNO), if the regulator allows this. The deal constitutes roughly 700,000 Orange (Yesss!) subscribers. 

3 has steered clear of this fake MVNO market too, relying solely on its own name.

Thursday, 23 August 2012

Invitel looks at Hungary MVNO again

Broadband TV News has cited local sources claiming that Invitel is looking at entering the MVNO market. This would take the triple play operator into the quad play market but until it launches just stay calm. The company was also cited back in September 2009 as about to join the MVNO market but failed to do so.

Mid Europa Partners took full control of the operator in 2010. Invitel owns one of Hungary’s most state-of-the-art proprietary optical trunk networks, whose total length reaches 8500 km. 

Rami Levy signs 67,000

Globes has reported that the Israeli supermarket MVNO, Rami Levy, has reached 67,000 subscribers as of June 2012. The service launched December 2011 and targets their existing supermarket client base.

Wednesday, 22 August 2012

Softly does it in Wichita for Chit Chat

John Hennessy of Chit Chat Holdings and Jim Alfonsin of Sprint have confirmed (via that the two have entered into a reseller agreement for mobile service. Chit Chat will go live in Wichita initially with a pay as you go mobile offer. 

The site states: "Hennessy expects to launch Chit Chat’s Wichita service in September, and launch services in the Missouri, Texas and New Mexico stores in the fourth quarter. He hopes to expand into 10 more markets in the first quarter of 2013."

So launching in September, operating on Sprint, hitting the pre pay market. 

Radioshacking up or not?

I hate giving attention to these massively overly hyped ad overly talked about MVNO possibles. I avoid like the plague every time the Apple or Google rumour jumps into action, but it does seem that Radio Shack are going to enter the mobile market. 5th September, coming to a retail unit near you (if you're in the USA), a RadioShack MVNO. What's the zing factor? That something to make the masses bin their current SIMs for a RadioShack SIM? Well, no one knows. It's all rumour .. or leak ... leaked rumour.

Virgin Mobile goes live with Polish MVNO

The Virgin Mobile brand wagon has now launched operations in Poland ... following on from the UK, USA, Canada, Austrialia, France, South Africa, India, Qatar and erm shhh Singapore. The last one did not go so well, hence why it's not part of press releases. 

The group's offering to Poland is a pre-pay plan via Play. Good luck to them though, checking our database (Poland's update to be updated) shows us that 21 MVNOs have already beaten Virgin to the market, plus another 9 branded ventures by MNOs, of which there are 6. 

GaduAir left the market over the last year and although UPC looks keen to enter to the market, Virgin Mobile is our only recorded launch since we last updated the database. So ... that brings the Polish mobile market to 36 offerings (21 via MVNOs and 15 via MNOs). The new MVNO Directory is expected early October. 

Thursday, 16 August 2012

TalkTalk UK ... again

TalkTalk is entering the UK MVNO market. Not to be confused with TalkMobile run by Vodafone... the mobile offer which the old TalkTalk MVNO became when the group last had its foray in the MVNO market. Since then the TalkTalk business de-merged from The Carphone Warehouse and focused on fixed line services. Now the new operation is going triple play with an offer just for its existing clients.

PR follows...

The £5-a-month smartphone revolution

Britain's best value mobile deals unveiled as TalkTalk Mobile launches

16th August – The company which revolutionised the phone and broadband market is set to do it again, this time with smartphones.

TalkTalk Mobile ( launches today and it promises Britain’s very best smartphone deals.

Available exclusively to TalkTalk customers, TalkTalk Mobile will offer simplicity, range and great value plans – all handsets will be completely free with plans starting from £5 a month.

TalkTalk has partnered with Vodafone to bring mobile services to customers including a range of SIM only plans and now handsets. Tristia Clarke, Commercial Director of TalkTalk said, “If you look at phone and broadband packages, they’re cheaper now than they were five years ago. TalkTalk led the way in bringing better value to the market and we’re doing it again with our mobile offers, saving customers even more.”

TalkTalk Mobile has stripped out all the unnecessary costs, which are passed on to consumers in their monthly bills, in order to offer the best value to its customers. Three plans are available - Small, Medium and Large with different prices depending on the choice of handset.*

Customers can buy online or over the phone with those buying online getting double the data allowance.

This simplicity coupled with low running costs means that TalkTalk can now offer the most popular handsets at hugely competitive prices ranging from basic feature phones to high end smartphones.

“We want to do in mobile what we did in broadband,” said Tristia Clarke “and that’s to bring greater competition and choice and offer the best value to our customers.”

TalkTalk families are already £154 a year better off than they were with BT. Now, with TalkTalk Mobile they’ll be better off still. Not only will their monthly bills be lower, they’re less likely to eat up their call allowance because calls between all TalkTalk mobiles in the household and from TalkTalk mobiles to the TalkTalk home phone landline are free.

TalkTalk Mobile will also help customers stay in control by sending text alerts when 80 per cent of their monthly allowances have been reached and customers who buy online will  get even better value as they get double the data allowance.

Simple Karma agreement USA

PRWEB: Karma has signed up to Simplexity's MVNE services to provide it with access to the Clearwire network.

Who's who? Karma are a yet to be launched pre-pay wireless hot spot offering. Simplexity is an MVNE providing access to Clearwire's nationwide mobile broadband network. Clearwire is US WiMAX company offering mobile broadband services. Clearwire's biggest shareholder is Sprint.

The big difference with Karma is the users offering their connection as a WiFi hotspot in return for free allowances: "...Karma is introducing a new approach to data plans with ... pay-as-you-go data packages ... without the 2-year commitment. ... step further with its unique ‘social bandwidth’ ... allowing users to turn their Karma hotspots into open Wi-Fi networks. When a new user joins, they are taken to a personalized page about the owner of the nearby hotspot. Strangers can then sign in with their Facebook account and immediately get 100MB... For every user who does that, the owner of Karma gets 100MB... The more a user shares his Karma connection, the more free data he earns."

Friday, 10 August 2012

UK Post Office wants mobile too (open for speculation)

Mobile Today has reported that the UK Post Office is seeking a partner for an MVNO. Why? The theory is they will attract customers from Tesco, Virgin and other MVNOs, according to Strategy Analytics director Neil Mawston. Shaun Collins, Managing Director of CCS Insight, said "I suspect we will increasingly see more and more large household brands like the Post Office consider entry into the MVNO market and the related services that offers."

All in all I do not see this being a game changer. I am surprised that it has taken the Post Office such a long time to get to this point, especially with the white label MVNO market flooding consumer choices. The Post Office missed the opportunity to be big in the mobile market by several years as the UK is now well covered across niches that do not even exist. I really hope any business plan they embark upon goes beyond pushing mobiles at a seniors sector who do not want and will not use mobile phones (yes many do, but targeting technology refusers is not a business model).

Thursday, 9 August 2012

GameStop Mobile will not be an MVNO

Days after amazing the gaming industry with the launch of an MVNO, or at least putting up a website with the appearance of offering mobile services, Engadget Mobile has confirmed in an interview with GameStop that no such MVNO will exist.

GameStop CEO Paul Raines was quoted by Engadget: "We don't have an MVNO (laughing). If you are trying to provide your customers with a bundle that comes with a pre-owned phone and will allow them to play games, make calls, and everything else -- you don't have to have a network to do that; you can sell SIM cards and pre-paid plans, those things exist, and we are in the process of testing several to see which ones makes sense."

PrepaYd Wireless Denies it has Merged with Zapp Unlimited

NEWPORT BEACH, Calif., Aug. 8, 2012 /PRNewswire/ -- PrepaYd Wireless, a wholly owned subsidiary of PrepaYd, Inc. (OTC PINK: PPDC), today announced that a website and email claiming that PrepaYd Wireless had merged with Zapp Unlimited were false.

Tuesday, 7 August 2012

TELMORE signs with MetraTech

MetraTech Corp., provider of agreements-based billing and compensation solutions, today announced that TELMORE has selected its MetraNet monetization platform. 

"The Danish telecom market is one of the most competitive in the world," said Thomas Hagen Stampe, IT Director at TELMORE. "We selected MetraTech because the company understands our pain points and its MetraNet solution can address market demand for the highest levels of customer responsiveness while simultaneously enabling us to deliver the innovative solutions that our customers want. The MetraNet platform is unique in supporting the implementation speed required to enable us to introduce new pricing and products at a competitive pace. In MetraTech, we have found a partner that will work with us to achieve our business objectives."

"We are very excited to be working with TELMORE, one of the most innovative MVNOs in the world. Their use of MetraNet to increase their competitive advantage in the Danish telecom market demonstrates the breadth of business models that our solution is quickly able to support," said Scott Swartz, founder and CEO MetraTech Corp.

Friday, 3 August 2012

MVNO Startup Ting Adding First LTE Phone

MVNO Startup Ting Adding First LTE Phone: Toronto - Mobile virtual network operator(MVNO) Ting, which resells Spr...Ting launched service in February, selling only though its website. For now, the company has no plans to sell through brick-and-mortar or online retailers, a spokesperson said.

Thursday, 2 August 2012

Elephant Talk Communications, Q2 2012 Financial Results

Elephant Talk Communications Reports Second Quarter 2012 Financial Results
1 Aug 12 - 12:00AM  | ElephantTalk News
Mobile and Security Revenue up 193% Y/Y, up 233% on a constant currency basis

SCHIPHOL, THE NETHERLANDS—August 1, 2012 - Elephant Talk Communications, Corp. (NYSE MARKET: ETAK) (, an international provider of software and services developed to manage network, billing and systems infrastructure for the telecommunication industry and a market leader in providing solutions to counter electronic fraud for the  financial services industry, today announced total revenue of $7.1 million for the second quarter ended June 30, 2012. Revenue for the higher margin mobile and security solutions business increased 193.2% year-over-year to $2.8 million in the second quarter of 2012.
Revenue from mobile and security solutions accounted for 39.3% of total revenue for second quarter ended June 30, 2012 compared to 12.2% for the three months ending June 30, 2011. Revenue minus Cost of Service (further referred to as ‘margin’) for the second quarter ended June 30, 2012 increased 541.2% year-over-year to $1.9 million, 26.8% of total revenue, compared to $0.3 million, 3.8% of revenue, for the three months ending June 30, 2011. The increase in margin was primarily attributable to the increased revenue contribution from the higher-margin mobile and security solutions business. 
“We are excited about the numerous milestone achievements Elephant Talk accomplished in the second quarter,” said Steven van der Velden, Chairman and Chief Executive Officer of Elephant Talk Communications. “We successfully surpassed one million active mobile subscribers on our platform in Spain, signed our first large contract in Germany that we expect to generate revenue of over $30 million over its initial two year period, and ValidSoft began providing a SIM swap fraud solution to one of the World’s largest banks.”
Key Operational Highlights for Second Quarter 2012
  • World’s First SIM Swap Solution for Banking Industry - ValidSoft, in partnership with Adeptra, a global leader in the business of automated, fully interactive consumer communications, began providing a SIM swap fraud solution to one of the World’s largest banks
  • Contract with large German MVNO – The contract, expected to generate at least $30 million of mobile revenue over the initial two-year contract period, began contributing revenue to the Company in July 2012 and based on the planned rollout and a  1 EUR to 1.21 USD exchange rate is expected to generate approximately $8.0 million of total revenue for 2012. Approximately half of this mobile revenue will be recognized on the Company’s income statement during 2012, with approximately 50% recorded as deferred revenue on its balance sheet to be recognized over the 24 month life of each activated SIM.
  • Spain Surpasses One Million Active Mobile Subscribers Level – Elephant Talk passed the one million subscriber level on the Vodafone  Spain network
  • Utiba Global Partnership – ValidSoft’s SMART™ (Secure Mobile Architecture for Real-time Transactions) to be integrated into Utiba’s market leading suite of mobile financial services
  • ValidSoft European Privacy Seal Renewed – The privacy seal for VALid-POS, a telecom-based security solution designed to combat card transaction fraud at ATMs or points of sale (POS), was renewed until 2014
  • Spindle & SOCURE Partnerships  - ValidSoft signed partnership agreements with Spindle, US-based provider of mobile commerce and alternative payment solutions for merchants and consumers, and SOCURE, a US-based provider of applications that protect the identity and reputation of users across social networks
  • Russell Global Index - Began trading in the index during the quarter
Financial Results for the Second Quarter and Six Months Ended June 30, 2012
For the three months ended June 30, 2012, total revenue was $7.1 million, a decrease of $0.7 million or 9.1% year-over-year, compared to $7.8 million for the three months ending June 30, 2011. A $1.8 million, or 193.2%, year-over-year increase in the Company’s high margin mobile and security solutions business was offset by a $2.5 million, or 37.1%, year-over-year decline in the lower margin legacy landline business.  The decrease in total revenue was the result of reporting currency translation effects.  When adjusted for these currency effects, total revenue increased 2.3% year-over-year. On a constant currency basis, mobile and security revenue increased 233% year-over-year while the landline revenue decreased 29.3% year-over-year. To determine the revenue growth rates on a constant currency basis revenue from entities reporting in non-U.S. dollars were translated into U.S. dollars using the average exchange rates over the six months ended June 30, 2012. The same exchange rates are used for the six month period ended June 30, 2011.
Contributing to the year-over-year growth of our higher margin mobile and security solutions revenue in the second quarter were the migration of a customer with a large consumer base in the 4thquarter of 2011, higher revenue from existing mobile customers and the implementation of ValidSoft SIM Swap solution by one of the World’s largest financial institutions under our Adeptra partnership. Contributing to the decline of landline revenue was the Company’s decision to terminate a landline contract due to its limited contribution to the Company’s margin and the global trend of communication moving to mobile and wireless platforms.
“We expect to report our fifth consecutive quarter of quarter-over-quarter growth in our mobile and security revenue on a reported and constant currency basis when we report third quarter results later this year and we  believe we are on track to achieve our first month whereby the Company’s margin (defined as revenues minus cost of service) should be sufficient  to cover operational cash outflow, not including non-cash expenses and capital expenditures by the end of 2012, or the beginning of 2013,” stated Mark Nije, Chief Financial Officer of Elephant Talk Communications. “Growth will be driven by our German contract, the migration in early July of an additional 100,000 mobile users from a mobile virtual network operator in Spain and ValidSoft’s further roll-out of its SIM swap fraud and other prevention solutions.’’
Total revenue for the six months ended June 30, 2012 was $15.7 million, a decrease of 3.9% year-over-year when compared to $16.3 million for the six months ending June 30, 2011. The decrease in total revenue was the result of reporting currency translation effects.  When adjusted for these effects, total revenue increased 3.8% year-over-year on a constant currency basis for the first six month of 2012 when compared to the year earlier period. 
For the six months ended June 30, 2012, mobile and security revenue increased 111.8% year-over-year and landline revenue declined 24.3% year-over-year when compared to the same period a year earlier.  When adjusting for currency translation effects, mobile and security revenue increased 128.9% year-over-year and landline revenue decreased 18.3% year-over-year when compared to the first six months of 2011.
Cost of service for the three months ended June 30, 2012 was $5.2 million, a decrease of $2.3 million, or 30.8%, compared to $7.5 million for the three months ending June 30, 2011. This decrease is fully related to the decline in landline revenue.  
Margin improved to 26.8% for the second quarter of 2012 compared to 3.8% in the same period a year earlier.
The following tables summarize the Company’s quarterly mobile and security revenue and Elephant Talk’s total margin since 2Q11. Mobile and security revenue increased as a percentage of total Company revenue to 39.3% in the second quarter of 2012 from 12.2% in the prior year period. 

Mobile and Security
Reported Revenue
$ in millions
% of Total Company Revenue

Total margin as a percentage of total Company revenue increased to 26.8% in the second quarter of 2012 from 3.8% in the prior year period.

Total Company Margin*
$ in millions
% of Total Company Revenue
* Revenues minus Cost of Service

Selling, general and administrative (“SG&A”) expense for the three months ended June 30, 2012 and 2011 were $4.6 million and $3.8 million, respectively. SG&A expenses increased $0.7 million, or 19.4%, in the three months ending June 30, 2012 when compared to the same period in 2011. Higher year-over-year SG&A expenses in the second quarter of 2012 were mainly the result of a 22.2% year-over-year increase in staffing levels, largely European (mobile and security) hires, as well as higher investor relations and sales, marketing & communication related staffing and expenses.
Adjusted EBITDA (a non-GAAP measure) improved to a loss of $2.7 million for the period ending June 30, 2012 from a loss of $3.5 million in the three months ended June 30, 2011. Adjusted EBITDA improved $0.2 million quarter-over-quarter for the quarter ended June 30, 2012.
The tables at the end of this press release include a reconciliation of net loss to non-GAAP Adjusted EBITDA for the three and six months ended June 30, 2012 and 2011. An explanation of this along with constant currency comparisons and margin, are also included below under the heading "Non-GAAP Financial Measures."
Net Loss was $5.0 million and $6.7 million for the three months ended June 30, 2012 and 2011, respectively. The $1.7 million improvement in net loss for the quarter was driven by a $1.5 million decrease in the loss from operations and a $0.2 million improvement in other income. Net loss improved $1.0 million quarter-over-quarter for the second quarter of 2012.
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, Elephant Talk uses measures of non-GAAP Adjusted EBITDA,  constant currency and margin. A reconciliation of the non-GAAP financial measures Adjusted EBITDA and constant currency to the closest GAAP financial measure, is presented in the financial table below under the heading "Reconciliation of Non-GAAP Measures to GAAP." Margin is derived from the income statements by subtracting cost of service from revenues. Elephant Talk believes that the non-GAAP financial information provided in this release can assist investors in understanding and assessing Elephant Talk’s on-going core operations and prospects for the future and provides an additional tool for investors to use in comparing Elephant Talk's financial results with other companies in Elephant Talk’s industry, many of which present similar non-GAAP financial measures to investors. In addition, Elephant Talk believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its internal budgeting and operational decision making.
In order to provide investors additional information regarding our financial results, we are disclosing Adjusted EBITDA, a non-GAAP financial measure. We employ Adjusted EBITDA for several purposes, including as a measure of our operating performance. We use Adjusted EBITDA because it removes the impact of items not directly resulting from our core operations, thus allowing us to better assess whether the elements of our growth strategy are yielding the desired results. Accordingly, we believe that Adjusted EBITDA provides useful information for investors and others, which allows them to better understand and evaluate our operating results.
For the three and six months ended June 30, 2012 and 2011, non-GAAP Adjusted EBITDA is defined as earnings before derivative accounting, such as warrant liabilities and conversion feature expensing, income taxes, depreciation and amortization and stock-based compensation.  It is determined by taking net loss and adding back provision for income taxes, interest income and expense, net loss attributable to non-controlling interest, depreciation and amortization, stock-based compensation expense, other income and expenses, and equity in earnings of unconsolidated joint venture. 
Elephant Talk believes these adjustments provide useful information to both management and investors due to the following factors:
•          Stock-based compensation. Although stock-based compensation is an important aspect of the compensation of Elephant Talk's employees and executives, determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expense recorded may bear little resemblance to the actual value realized upon the future exercise or termination of the related stock-based awards. Furthermore, unlike cash compensation, the value of stock-based compensation is determined using a complex formula that incorporates factors, such as market volatility, that are beyond Elephant Talk's control. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of Elephant Talk's core business and to facilitate comparison of its results to those of peer companies.
To determine the revenue growth rates on a constant currency basis for the three and six months ended June 30, 2012, revenue from entities reporting in non-U.S. dollars were translated into U.S. dollars using the average exchange rates over the six months ended June 30, 2012. The same exchange rates are used in the income statement of the six months ended June 30, 2011.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in Elephant Talk's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of Elephant Talk presents its non-GAAP financial measures in connection with its GAAP results. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measure. As previously mentioned, a reconciliation of our historic non-GAAP financial measures to their most directly comparable GAAP measures has been provided below.

Wednesday, 1 August 2012

Republic Wireless calls up Wave B, launches Motorola DEFY XT

As detailed on their blog, Republic Wireless has declared its initial testing phase a success and is rolling out Wave B.

"With Wave A, we gathered real-world proof that our $19 unlimited price is not only compelling but sustainable too. Based on that, we embarked on an audacious expansion.

In relatively short order, we brought together a large team of brilliant engineers, operations experts and support pros. We built out robust systems designed to scale. We engaged several handset manufacturers in rigorous development and testing cycles in search of the best device for our community. And critically, we enlisted partners to establish our supply chain and fine tune core processes. The first visible elements of our work emerged last week, with the rollout of our new community platform and MyAccount portal.

Today, we’re thrilled to introduce the brand new Motorola DEFY XT with republic’s proprietary Hybrid Calling technology.

We’re proud to be the first to offer it in the US. It’s a great phone, and it’s incredibly durable. Does that matter? You bet. If you’re like me, you’ve ruined at least one phone in water or shattered it on pavement. With the DEFY XT, you don’t have to worry about expensive replacements and insurance policies. This phone is the real deal, with Corning Gorilla Glass and an IP67 Rating for solid particle and water resistance."

Tele2 Austria talks of re-launch

Reporting in WirtschaftsBlatt, an Austrian national newspaper, Tele2 is working with 3 Austria to secure an MVNO contract. 

The CEO is quoted in Reuters saying: "As a global company, we are focused on mobile. For us, it's not about selling SIM cards as cheaply as possible but about offering a comprehensive fixed-mobile service."

With a fixed operation still active in Austria with a subscriber base of 300,000 customers, this probably suggests a fixed mobile offering as opposed to any mass market push by Tele2

Atmovia (Viacloud) signs MVNA contract with Everything Everywhere

Everything Everywhere, the merged company of T-Mobile and Orange in the UK, has announced a strategic partnership with Mobile Virtual Network Aggregator (MVNA) Atmovia, the UK wholesale subsidiary of the Viacloud Group.

Atmovia is a carrier-grade wholesale mobile company focussed on the development and growth of MVNOs within the UK and Europe.  It is the MVNA subsidiary of the Viacloud Group, a private equity-backed telecommunications company focussed on mobile and international communications.

Marc Overton, Vice President, Wholesale and M2M at Everything Everywhere, said:  “This is a very exciting step in the evolution of the MVNA market, and will allow small and large MVNOs alike to establish themselves in the market quickly and efficiently, giving them ultimate control over the service they offer their customers.  The Atmovia platform, coupled with the scale and reliability of the UK’s largest 2G and 3G network, reinforces Everything Everywhere’s position as the number one choice for MVNOs.”

Ahmed Alumran, Managing Director of the Viacloud Group, said: “We have made a significant investment in the Atmovia platform and our relationship with Everything Everywhere, because we believe there is a very real market opportunity in providing this level of infrastructure and functionality to MVNOs in the UK and across Europe. Our aim is to enable our MVNO partners to achieve their growth and profitability objectives with the knowledge that they are backed up by both the UK’s largest mobile network, and the most advanced mobile platform available.”

Richard Williams, Chief Operating Officer at Atmovia, said: “We don’t believe that anyone else has done what we have; investing in the highest-spec, carrier grade technology for our platform, and taking the time to fully integrate it with our MNO partner.  Our MVNO customers will benefit from this investment directly, as they are able to quickly react to changing market conditions and offer their own customers the flexible and high-quality service they expect, on a network that – like us – is investing great amounts of time and money to provide the best service for its customers.” 

Tuesday, 31 July 2012

MVNO list goes live

Previously we published the list of non-MVNOs (all those cited online as being MVNOs, but are not), now we have published both the non-MVNOs and the MVNO List in one place. The full list is made up of over 1,000 entries.

Available by the country you can now see which MVNOs are active around the world. 

The full database is still available to order in PDF & Excel format. 

Friday, 27 July 2012

Elephant Talk appoints Director of Corporate Communications and Hires New PR and IR Agencies

Schiphol, the Netherlands – 27 July 2012 – Elephant Talk Communications Corp. (NYSE MKT: ETAK) (, an international provider of business software to the telecommunications and financial industries, has appointed Jan Goeijenbier as Director of Corporate Communications. Jan will also manage the group’s newly appointed public relations agencies – Fishburn Hedges in Europe and Intermarket Communications in the United States – as well as, together with VP of Investor Relations Steve Gersten, The Blueshirt Group, ETAK’s new investor relations agency.

The new appointments reflect Elephant Talk’s commitment to meet the highest standards in its sustainable communication with stakeholders.

Jan’s main responsibility will be to strengthen and further improve Elephant Talk’s branding and external relations, and he will be reporting to Steven van der Velden, CEO of Elephant Talk. Jan brings a wealth of experience, having worked as an interim manager and consultant at the executive board level for over 150 clients in industries including pensions and finance, energy, broadcasting, government, real estate, accountancy, agricultural, FMCG and higher education.

Fishburn Hedges, a leading PR agency based in London, will manage Elephant Talk’s European media relations. The agency already advises and implements the European communications strategy of ValidSoft, Elephant Talk’s subsidiary.

Intermarket is a top-tier PR agency based in New York, representing such internationally recognised brands as Nestle and Charles Schwab. It will be managing Elephant Talk’s media communications in the US as the company seeks to expand its presence in that market following its listing on the NYSE Amex last year. In addition to Elephant Talk’s US PR strategy, Intermarket will also take on ValidSoft’s US PR responsibility.

The Blueshirt Group provides capital markets expertise and strategic financial and media relations counsel to growth companies and venture capital firms globally. Founded in 1999, the firm has earned its reputation as a leader in investor relations, financial communications, financial media relations and crisis management.

Steven van der Velden, CEO of Elephant Talk, comments: “I’m delighted that Jan is on board to share his broad experience with our businesses. His responsibilities will include corporate branding & communications, public & investor relations, and public affairs. He joins us during an exciting time for the telecommunications and software industry as a whole.”

Jan Goeijenbier, Corporate Communications Head, Elephant Talk adds: “I am excited to be a part of the Elephant Talk team and to work alongside Fishburn Hedges, Intermarket and The Blueshirt Group in our continued efforts to communicate important business developments to our stakeholders. Elephant Talk is a truly innovative telecom and financial services software provider, and I look forward to showcasing our ability to evolve with technology, whether in global mobile telecoms, cloud-based services or fraud detection, in the form of ValidSoft’s products.”

Virgin Mobile moves into Eastern Europe

Virgin Mobile Central and Eastern Europe (VMCEE) is set to launch in Poland this summer, the first market for the newly formed holding company. VMCEE was founded in 2011 by a team of experienced telecom investors, together with former Virgin Mobile and Lebara executives. 

The MVNO market is set to grow rapidly in Central and Eastern Europe as the region's mobile markets mature and the regulatory systems evolve. The launch in Poland will provide Virgin with a strong platform in the Central and Eastern Europe region. Poland has an attractive and accessible telecommunications market which offers significant potential for MVNO growth. 

VMCEE will leverage the global knowledge and proven business formula of one of the world's most successful MVNOs, Virgin Mobile, and further benefits from having common founding shareholders with Virgin Mobile Latin America (VMLA) and Virgin Mobile Middle East and Africa (VMMEA).

Alan Gow, Chairman VMCEE and previously Co-Founder, CFO and Managing Director of Virgin Mobile UK, added: "The Virgin Mobile brand is one of the most successful and revered MVNO brands globally, and the Virgin Group has an excellent track record of operating successful MVNO businesses in other parts of the world, so I am excited about working closely with Virgin Group on the launch of Virgin Mobile in the Central and Eastern Europe region."

Source PR Newswire

Thursday, 26 July 2012

Solavei Mobile launches 4G offer to USA

Solavei Mobile has launched a new 4G offer across T-Mobile network to the US market place. Subscribers are offered a USD 49 per month contract with unlimited voice, text and data. The operator also seeks to push word of mouth marketing and engage its own subscribers to win it further business via Solavei integrated social networking platform. 

"We are going to make a difference in people's lives by shifting billions of dollars from traditional mass-media advertising into the greatest advertising vehicle today – people," said Ryan Wuerch, founder and CEO of Solavei. "Solavei is the first company to create an economic linkage between mobile service, social commerce and social-networking technology. We give people the opportunity to earn income by using and promoting the services they are already consuming each and every day."

"Solavei is introducing a first-of-its-kind approach to wireless, and we're pleased to have them as a strategic MVNO partner," said Doug Chartier, senior vice president of T-Mobile. "T-Mobile's network is a strong part of the Solavei offering, giving its members the benefit of a fast, dependable mobile data network with nationwide 4G coverage."

Wednesday, 25 July 2012

Elephant Talk activates first 4000 SIM Cards in Germany

Bonn, Germany – July 24, 2012 – Elephant Talk Communications Corp. (NYSE MKT: ETAK) (, an international provider of software and services to the telecommunications and financial services industries, today announced that it has successfully completed the activation of approximately 4,000 SIM-Cards associated with a recently signed contract with one of Germany’s largest unions. This initial activation represents the first batch of SIMs to be activated. The Company expects to activate a total of 55,000 SIMs by year’s end.  

Based on the planned rollout and the current 1 EUR to 1.21 USD exchange rate, Elephant Talk expects to generate approximately $8 million in total revenue for 2012.  Approximately half of this revenue will be recognized on the Company’s income statement, with approximately 50% recorded as deferred revenue on its balance sheet to be recognized over the 24 month life of each activated SIM.

“We’re very excited and proud to service one of the largest closed user groups in Germany with our world-class solutions,” stated Steven van der Velden, Chief Executive Officer of Elephant Talk Communications. “This is a positive sign of things to come as we enter the German market, and we look forward to working with this customer to complete the rollout while also pursuing additional, similar opportunities in the region.”

“Our implementation team clearly showed their strong capabilities by completing this project in such a short period of time,” said Martin Zuurbier, Chief Technology Officer of Elephant Talk Communications. “This project shows the operational excellence of Elephant Talk to quickly adapt to any type of Virtual Mobile business case.”

£500m revenue and a profit, Lebara shows MVNO success

Lebara Mobile has shown the mobile sector that even in a recession and no matter how many analysts try to talk down MVNOs, there is profit to be made and success to be had. London Loves Business have taken a good look at the Lebara operation and recognised the flare involved in making an idea into a profitable MVNO. 

For me, what stands out most about the article is Ratheesan Yoganathan, CEO of Lebara, stating: “I think there is room for much more than the €648m we generated as revenue last year. I want to see the company achieving its goal of being the choice of brand of one billion customers by 2020, I don’t want to call it quits before that.”

Tuesday, 24 July 2012

Virgin Media UK Q2 2011 results

Mobile revenue up 2.9% to £136m in Q2, with contract mobile revenue up 15% to £102m
− Contract mobile customers increased 53,900 to 1.6m
− Quad-play penetration continues to grow; now at 15.4%
- Mobile revenue was £136.4m, up 2.9% due to growth in contract service revenue, partially offset by the regulated change in MTRs and the decline in prepay service revenue.

Neil Berkett, Chief Executive Officer of Virgin Media, said: "This has been a quarter of improved revenue and OCF growth. We are well placed to benefit from the fast-growing demand for superfast broadband and TiVo positions us well to lead the evolving TV market. Customer ARPU and churn have improved and, together with our growing Business division and great value mobile offerings, we have maintained steady financial progress across the company which is translating into strong free cash flow as well as continued shareholder returns."

As reported: "Continued improvement in the proportion of mobile customers with contracts resulted in 2.9% total mobile revenue growth to £136.4m. The strong contract revenue growth was partially offset by the headwinds of declining prepay revenue and regulatory changes to mobile termination rates (“MTR”). Contract service revenue increased 15% to £101.7m, while prepay service revenue declined by 20% to £32.8m. MTR changes reduced the amount of inbound mobile revenue we received by approximately £6m in the quarter. Excluding this regulatory factor, we estimate that mobile revenue would have increased by approximately 7%, when compared to the same quarter last year. Due to a similar associated reduction in interconnect costs for our mobile and fixed line businesses from these regulatory rates changes, the impact on group OCF was broadly neutral."

Monday, 23 July 2012

Lycamobile looks to Canada

The UK based and Europe focused Lycamobile is looking across the Atlantic to Canada as one of its potential new markets as it strives for 25 MVNOs, from its current 16, as reported in the Globe

The Canadian market has already opened up to both MVNOs and an influx of new MNOs. At this stage Lycamobile still needs to find a host MNO to gain access to the market, but this should not be an issue with 3 national operators to work with. 

Lycamobile will likely target those in Canada who are outside of the English or French speaking communities. 

Thursday, 19 July 2012

Loxley and Tune Talk form alliance

The Bangkok Post has reported, Loxley Plc is forming an alliance with Tune Talk, Malaysia's mobile virtual network operator (MVNO) controlled by AirAsia founder Tony Fernandes, to serve TOT Plc's third-generation (3G) wireless broadband service nationwide. Loxley will hold a 51% stake in a new venture firm with Tune Talk holding the remaining 49%. The company will use Tune Talk brand for its 3G service.

Bichara Tecnologia to unveil 5 Brazilian MVNOs?

BNAmericas has reported that Bichara Tecnologia are planning on bringing up to 5 MVNOs to the Brazilian market this year. Of course, they did not say who the 5 are.

Wednesday, 18 July 2012

Everything Everywhere launches Viacloud, MVNA partner

18th July 2012, United Kingdom: Everything Everywhere, the UK’s biggest communications company, has announced a strategic partnership with Mobile  Virtual Network Aggregator (MVNA) Atmovia, a subsidiary of the Viacloud Group. 

Atmovia has invested in deep end-to-end technology from Nokia Siemens Networks, and its platform will support the launch and growth of Mobile Virtual Network Operators (MVNOs) on the Everything Everywhere network. It has the unique capability among MVNAs of dealing with large customer bases, with an out-of-the-box capacity to manage up to 7 million subscribers.  

Richard Williams, Chief Operating Officer at Atmovia, said: “We don’t believe that anyone else has done what we have; investing in the highest-spec, carrier grade technology for our platform, and taking the time to fully integrate it with our MNO partner.  Our MVNO customers will benefit from this investment directly, as they are able to quickly react to changing market conditions and offer their own customers the flexible and high-quality service they expect, on a network that – like us – is investing great amounts of time and money to provide the best service for its customers.”

Atmovia is a carrier-grade wholesale mobile company focussed on the development and growth of MVNOs within the UK and Europe.  It is the MVNA subsidiary of the Viacloud Group, a private equity-backed telecommunications company focussed on mobile and international communications.