Aggressive growth plan for XLN MVNO

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XLN adds 850 users per month and sets new target of 1,500 new connections per month

B2B MVNO XLN Telecom has launched a new unlimited tariff as it targets an acquisition rate of 1,500 new connections per month by mid-2011.

XLN Telecom entered the MVNO market in January this year via a partnership with Gamma Telecom, which itself holds an MVNO arrangement with Three. The firm, with an annual turnover of around £54 million, initially set out to sell into its base of 125,000 customers, already using its fixed line and broadband products.

XLN Group chief executive Christian Nellemann (pictured) said it is currently connecting around 850 customers per month and has established a base of around 7,000 customer in eight months.

Nellemann said the company had originally targeted 1,000 connections per month with 25 staff, but is achieving 850 with just 10. Nellemann hopes to treble the number of staff in the next 12 months and have a base in excess of 15,000 customers using its mobile product.

To help, XLN Telecom has launched a new unlimited SIM-only tariff for £28.89 per month, which it claims beats Tesco Mobile for value. It also claims it has had no disconnections to date.

It has also started to bundle handsets with its deals through a partnership with 20:20 Mobile after admitting the lack of handsets had presented obstacles in signing up customers initially.

“When we first launched, we went with a SIM-only proposition with 400 inclusive minutes for £7.99 per month. We found out pretty quickly people were interested in handsets, and so we now have a number of handset inclusive deals. We have learned along the way what customers want and how to deliver that, and a bigger assortment of devices will be made available down the line.”

Nelleman said XLN Telecom may consider reselling other network airtime if its scale interests operator partners. “Once we have 20,000 customers and continue to show growth, then it may be more interesting to operators. Certainly, we will consider that.”

He added: “I am very excited because our initial plan was to get 1,000 connections from 25 agents per month, and we are getting 850 from just 10, so I am very pleased. It’s a really good result.

“Customers are happy and we haven’t had one complaint or one disconnection, which speaks volumes.”

XLN head of marketing James Wilson added: “As never before, the pressure is on small businesses to cut costs and fund their own growth. Our tariffs beat Tesco hands down for pricing.

“Our core proposition is to save small businesses money on all their telecom services and this is a massive step forward in giving value for money and a fixed, known price.”

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