JV to focus on ad-funded content


The new Orange/T-Mobile combined entity is to focus heavily on developing advertising funded content and services, its heads told Mobile News yesterday.

Orange UK chief executive Tom Alexander (pictured left), who is to assume the same role within the joint venture, said the new entity would look to position itself as the premier network for high end handsets, as well as develop multimedia services.

Said Alexander: “The rush of multimedia devices to the market offers a fantastic experience to customers that we will deliver. It is crucial to create opportunities in that new world through ad-funded content and services. As handsets and networks begin offering greater capability, we will also start to see new revenue streams and business models emerging.

“We are huge believers in advertising funded services. We have spent a lot of money in this field and have acquired a lot of expertise. The joint venture will be able to develop this further.”

The joint venture is also to dedicated a third of its potential opex savings towards developing its brand strategy, T-Mobile chief executive Richard Moat (pictured right) revealed. The companies’ joint presentation on Tuesday stated that savings from opex synergies would result in about £445 million per year. A third of this equates to around £148 million.

Said Alexander: “Both companies have spent a lot of money on their brand over the years and both have become household names and mean different things. We will be looking at what is the appropriate brand strategy over the next 18 months following the deal’s approval. It could be a new brand, a series of multi-brands, or a supplementary brand.”