Blyk

Infobox_Company
company_name = Blyk
company_
company_type = Private
foundation = Helsinki, Finland
location = flagicon|Finland Helsinki, Finland
key_people = Pekka Ala-Pietilä
area_served = Great Britain
industry = Telecommunications
operating_income =
num_employees =
homepage = [http://www.blyk.co.uk www.blyk.co.uk]

Blyk (pronounced:IPA|blɪk) is a free mobile phone network exclusively for 16-24 year olds.

It is significant in that it is the first free mobile network to be funded by advertising. Users signing up to the network will receive advertising messages on their mobiles, and in return are given an allowance of free texts and minutes each month.

There is no contract, or other monthly payment. If a Blyk member uses more than their free allowance they can top up at the same pay-as-you-go rates as Orange, 10p per text and 15p per minute. This similarity in pricing is likely because Blyk is a Mobile Virtual Network Operator that uses Orange’s network.

Blyk is the brainchild of two Finns, Pekka Ala-Pietilä (formerly president of Nokia) and Antti Öhrling (chairman of the Contra advertising group). Its headquarters are in Helsinki but it also has an office in London. In October 2007, Shaun Gregory was appointed UK CEO.

Reaction

The response from the British press towards Blyk has, so far, placed its emphasis on debating the potential effectiveness of mobile-based advertising, with concerns that it may prove intrusive in a similar manner to pop-ups on websites or spam email. The Guardian commented that "advertisers will have to be careful not to annoy their new users with the mobile equivalent of spam" [http://business.guardian.co.uk/story/0,,2042684,00.html] ["Teens to get free mobile calls - with a catch", The Guardian, 26 Mar 2007. [http://business.guardian.co.uk/story/0,,2042684,00.html] ] , with Channel 4 stating that the fact that "you have to suffer the ads" was the network's downside. [http://www.channel4.com/news/articles/arts_entertainment/media/blyk+offers+free+mobile+calls/845082] ["Blyk offers free mobile calls", www.channel4.co.uk, 25 Sep 2007. [http://www.channel4.com/news/articles/arts_entertainment/media/blyk+offers+free+mobile+calls/845082] ] Tech Digest also noted that if advertisers don't embrace the interactivity offered by the network, they may have to resort to spam. [http://techdigest.tv/2007/09/analysis_blyk_h.html] ["Analysis: Blyk hitting right notes with ad-funded MVNO, but faces challenges", Tech Digest, 24 Sep 2007. [http://techdigest.tv/2007/09/analysis_blyk_h.html] ]

Channel 4's technology correspondent Benjamin Cohen also raised the issue that targeting individuals with advertising for brands such as McDonalds and Coca-cola could open up a debate about childhood obesity.

Other sources, however, have praised the network's approach to its adverts, whereby users can respond to messages they receive free-of-charge to receive a more personal service. SMS Text News stated that this aspect of the network "may well be extremely welcome" [http://www.smstextnews.com/2007/09/blyk_arrives_ready_to_serve_the_uks_16-24_year_olds.html] ["Blyk arrives ready to serve the UK's 16-24 year olds", SMS Text News, 25 Sep 2007. [http://www.smstextnews.com/2007/09/blyk_arrives_ready_to_serve_the_uks_16-24_year_olds.html] ] , and The Times reported that certain analysts believe that Blyk "could provide a boost to the nascent market in mobile marketing". [http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article2521477.ece] ["Blyk's 'free' phone targets teens to twenties", The Times, 24 Sep 2007. [http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article2521477.ece] ]

Ultimately the future possibilities of mobile advertising remain to be seen, but the success or failure of Blyk will likely be a key event in the development of the medium.

Market

Blyk is distinguished by the age restriction that it operates for its membership. The 16-24 age range is exclusive and applied by means of ID checks with several national databases during sign up. Members who join before turning 25 are not removed from the network when they do so, but are unable to rejoin if they leave.

Membership is by invitation only, which are available via special promotions and from existing members, but currently anyone can get an invitation by sending the word "JOIN" to 82595 from a UK mobile phone. Potential members join the network via its website [http://www.blyk.co.uk] As part of the process they are asked a range of profiling questions. Blyk uses the information it gathers to target them with relevant advertising messages at a rate of up to 6 a day. On 25 Sep 2007 it was reported by telegraph.co.uk that the company has so far secured 44 brands for its service, including Coca-Cola, NatWest, Boots Group and Mastercard. [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/24/bcnblyk124.xml] [ "Blyk starts first free mobile phone service", www.telegraph.co.uk, 25 Sep 2007. [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/24/bcnblyk124.xml] ]

If Blyk finds its market in the UK there are plans for it to become pan-European over the coming years, taking its service to as many as 40 million 16-24 year old Europeans.

On April 24 2008 Blyk announced that they had reached their twelve month target of 100,000 clients six months ahead of schedule. [ "Ad-funded telco reaches 100,000 clients in Britain", Reuters, 24 April 2008. [http://www.reuters.com/article/technologyNews/idUSL24754020080424] ]

Other Material

Launch press conference [http://blyk.vpod.tv]

References

reflist

External links

* [http://www.blyk.com/ Official website]
* [http://www.blyk.me/ Official sign up website]
* [http://www.getblyk.com/ Nice&clean website explaining Blyk]
* [http://uk.intruders.tv/Essential-Mediatech-Antti-ohrling-and-Jonathan-MacDonald-of-Blyk_a245.html Antti Öhrling and Jonathan MacDonald share the story and vision behind Blyk] video

{| class=navbox! tnavbar-header|UK mobile phone companies
UK mobile phone companies
-
T-Mobile UK | Vodafone UK | O₂ UK | Orange UK | 3 UK
-! Mobile virtual network operators
-
ASDA Mobile | BT Mobile | Dot Mobile | Fresh Mobile | TalkTalk | Tesco Mobile | Virgin Mobile UK | Blyk