KPN introduces no-frills MVNO service in France

8 Jan 2009

KPN of the Netherlands has revealed it is launching a no-frills, low-cost MVNO service in France under the brand name Simyo, leasing network capacity from Bouygues Telecom to piggyback the service. Reuters reports that the launch, which continues the group’s cautious approach to expanding beyond its core markets, will take place on Sunday with plans to expand its activities through the coming year. KPN sees growth potential in a pre-paid market it considers underdeveloped and overly expensive. It will target specific demographic groups (eg ethnic minorities) and lower-income groups with an offer promising call costs of EUR0.19 (USD0.25) per minute – which it says undercuts the current average of EUR0.32 per minute.

France, Bouygues Telecom, KPN