Xfera adds 15,000 users in first fortnight, papers say

14 Dec 2006

Spain’s start-up 3G operator Xfera Móviles has signed up 15,000 customers since launching services on 1 December, according to local paper El Pais. The number of customers exceeded the cellco’s own forecasts and it now expects to surpass its initial goal of signing up 30,000 customers in the first month. Xfera’s launch goals have been modest: it expects to have less than 1% of subscribers by the end of 2007 and blended ARPU of around EUR30 per month in the short-term. Its subscriber acquisition cost (SAC) for post-paid customers is expected to be lower than the Spanish average of approximately EUR120, whilst pre-paid SAC will be slightly higher than the average EUR40.

According to TeleGeography’s GlobalComms database, Xfera launched commercial W-CDMA services on 1 December 2006 under the brand name Yoigo. Its unique selling point is its decision to offer the same call prices for both post- and pre-paid customers: EUR0.12 (USD0.16) per minute for all domestic calls, subject to a call connection charge of EUR0.12 (both prices exclude VAT). In addition to voice services, Yoigo also offers its customers SMS, MMS, mobile internet access, mobile portal services and international roaming. The cellco offers nationwide coverage based on a combination of its own W-CDMA network and roaming via the GSM-based networks of rival Vodafone Spain. Its 3G network is currently being rolled-out by Ericsson to 25% of the population as required by its licence by year-end.

Spain, Xfera Moviles (Yoigo)