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Print this ArticleKPN Shuts Down Five MVNOs Targeting Immigrants in Spain:: Tarifica
02 Dec 2010 by admin in 1-FEED, Feed, KPN, Spain / No Comments
The Dutch operator, which has several MVNOs in the country, with Simyo and Blau being the most popular, has shut down five of them. These operators were mainly targeting foreigners, a very competitive market in the Country. The five MVNOS affected by this decision are Hablafacil, Hong Da Mobile, Celular Line Movil, Talkout and MundiMovil.Hablafacil was launched by financial institution Banco Santander to target the Bank’s foreign clients. Hong Da Mobile was one of the few MVNOs dedicated to Chinese immigrants, whose population in the country has grown significantly over the last few years. Finally, Celular Line Movil, Talkout and Mundimovil were targeting South American immigrants living in Spain.
Even though these operators will not accept new clients, existing users can continue using the service for now and those users who wish to keep their phone numbers will be able to port them to other operators.
Tarifica’s Take
KPN is consolidating their MVNO business in Spain. The Company is currently renegotiating their contract with Orange, the operator that provides their network, and based on that negotiation, KPN may have determined that these segments are no longer capable of generating attractive margins.This move is consistent with the recent announcement of the merger of their top two performing brands, Simyo and Blau, under the Simyo brand. Additionally, KPN has closed two other MVNOs in the last two months: Vuelingmovil (managed by the low cost airline with the same name) and XL Movil, (managed by Marsans Group, a travel agency).
The economic crisis in the Country, which has an unemployment rate above 20%, has forced many immigrants to return to their countries of origin, thereby decreasing the number of potential clients for these MVNOs.
Additionally, at the time KPN entered the Spanish market a few years ago, it announced that some of these MVNOs would likely disappear over the long term because of their inability to capture clients with a clearly differentiated offer
via KPN Shuts Down Five MVNOs Targeting Immigrants in Spain
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