Entry of White-Label Mobile Broadband Service

I guess it was just a matter of time before white-label mobile broadband service offerings entered the mobile data lexicon. Spanish PC manufacturer AIRIS has recently concluded a promotion offering a mobile broadband laptop bundle with no specific operator branding. The white-label offer shows how mobile broadband is rapidly becoming a commodity in Spain and in most of Europe. AIRIS ran the promotion (see picture) with Spanish national daily newspaper El Mundo, offering a free ultra-portable laptop and modem to anyone who collected vouchers from the newspaper and signed up for either a 12-month contract with Telefonica or a 24-month contract with Orange Spain. Although the terms of the contract are not any more favourable than those offered directly by mobile operators, the lack of operator branding shows that operators are not the only players pushing bundled mobile broadband offers in Spain. 

The reason for such white-label mobile broadband offers in Spain becomes apparent when you consider that close to 30% of Spanish households have neither PCs nor fixed broadband – a ready target for mobile operators, PC vendors and who knows what in the future. This number is actually higher in Portugal (60%), Greece (40%), Italy (40%) as well as France (30%). Expect such white-label services to be launched in these countries very soon.

The flood of new MVNOs in Spain (most of them through Orange) has been the primary reason why non-mobile operators such as fixed Internet service providers are launching mobile broadband services. In addition to AIRIS, Spanish broadband operators Jazztel and Ono have also recently launched mobile broadband packages. Jazztel is offering both a prepaid tariff costing €0.20 per megabyte and a contract offering 250MB for €7.95 a month. The company offers its mobile Internet service as an extension to the mobile voice service it launched in June through its MVNO agreement with Orange.

Cable operator Ono is also promoting “free” mobile broadband up to 5MB a day under the brand BAMG (Banda Ancha Movil Gratis) for users who buy a dual- or triple-play bundle of TV, phone and fixed Internet. KPN-backed Simyo (offered through Orange again), for example, is undercutting the three network operators by offering up to 5GB of data transfer over HSPA for €24.99 a month, with no fixed contract length. While the data packages of Jazztel and Ono are fairly limited, KPN-Simyo has aggressively priced its mobile broadband offering – traditionally Telefonica and Vodafone have not been too willing to bring down the mobile broadband pricing premium (which is close to 45% above that of fixed broadband), Orange which has probably a lot less to lose has thrown the gauntlet through its MVNO partner.

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1 Comment

Filed under fixed broadband, HSPA, mobile broadband

One response to “Entry of White-Label Mobile Broadband Service

  1. broadband services these days are getting and cheaper and faster too, very soon we would have an affordable Gigabit internet “”

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