Existing Compass Communications business and residential customers look set to benefit most from the company’s new mobile service.
As Computerworld reported yesterday, Compass plans to launch mobile services in March, as a Mobile Virtual Network Operator (MVNO) on the Vodafone network.
However, the company did not reveal much in the article about its market strategy for the new venture.
But CEO Karim Hussona told TUANZ today that Compass plans to mainly target its existing toll, fixed line and broadband customers with the new mobile service with the aim of offering combined deals.
“We are less likely to go out and just target mobiles,” he says.
While Hussona did not wish to disclose what types of plans Compass will offer, he revealed that the company aims to compete around four areas: price; single billing for fixed line, broadband and mobile services; casual contracts; and unified messaging options across fixed line and mobile phones.
Although Compass touts itself as a provider of “super cheap” toll calls and “great value” broadband, it remains to be seen if it will be able to offer much better mobile phone rates.
This could largely depend on how far it can stray from offering reworked versions of existing Vodafone plans.
Its fellow MVNO on the Vodafone network, Black+White, which launched last October, presently resells Vodafone’s existing plans, albeit with its own flair.
Meanwhile, TUANZ understands Vodafone is still working on mobile wholesale offerings that would allow MVNOs to differentiate themselves in the market.
This suggests that initially Compass would also offer mobile plans based on current Vodafone offerings.
While the entry of another mobile service provider is welcome, it is unlikely to drive down prices for the bulk of the market.
As stated on this blog before, real competition can only come in the form of a fully fledged third network operator.
And rolling out a complete network of its own is certainly not on Compass’ agenda, says Hussona.
“You need deep pockets and lots of patience for that,” he says.