'Free' mobile firm plans European expansion

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By Editorial Team (Thursday, 26th June 2008)

A mobile network which offers free calls to customers in exchange for accepting advertisements will launch products in Germany, Spain and Belgium next year.

Based in Finland and the UK, Blyk is the world's first advertising-funded mobile operator and is available for phone users between 16 and 24 years of age.

The company has recently handled promotional campaigns for brands such as Penguin, Coca-Cola and L'Oreal in the UK, with over 100,000 members joining the service since its launch in September 2007.

Speaking about Blyk's plans to raise its profile in Europe, co-founder Pekka Ala-Pietila said: "There is a great opportunity for Blyk in these markets.

"Our research shows that young people in Germany, Spain and Belgium are interested in the Blyk proposition because they want to interact with brands they like in exchange for free communication."

Nitesh Patel of Strategy Analytics told the Guardian that his firm has been "impressed" with Blyk's performance so far, although doubts remain over how "sustainable" its business model will prove to be in the current market.