Launch of easyMobile prompts price cuts

11 Mar 2005

The beginnings of a price war have been initiated with the rollout of the UK’s latest mobile service, MVNO easyMobile. The venture, wholly owned by Danish operator TDC and operating under a licence agreement with Stelios Haji-Ioannou’s EasyGroup, was causing controversy long before yesterday’s launch, over its use of EasyGroup’s distinctive orange branding, a colour that rival cellco Orange believes it has the exclusive right to manipulate. Like Stelios’ other notable launches, easyMobile offers low-cost, no-frills services to consumers based on internet-only sales. The cellco’s aggressive introductory pricing of GBP0.09 for calls and GBP0.03 for texts to all UK networks until June has prompted an swift response from pre-pay rivals targeting low-usage phone users. Fellow MVNO Fresh, part of the retail group Carphone Warehouse, immediately halved its call and text prices to GBP0.075 and GBP0.025 respectively for any customers topping up in store. It is unlikely that Fresh will be the only operator to slash its tariffs in response to the appearance of the newcomer.

United Kingdom