Simyo
Encyclopedia
simyo is a no frills
No frills
No-frills or no frills is a term used to describe any service or product for which the non-essential features have been removed to keep the price low. The use of the term "frills" refers to a style of fabric decoration...

 brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...

 of a mobile virtual network operator
Mobile virtual network operator
A mobile virtual network operator is a company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service...

 operated by KPN
KPN
KPN is a Dutch landline and mobile telecommunications company, including both 2G and 3G mobile operations...

 in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

 and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

.

The company was founded in May 2005. Its headquarters are in Düsseldorf
Düsseldorf
Düsseldorf is the capital city of the German state of North Rhine-Westphalia and centre of the Rhine-Ruhr metropolitan region.Düsseldorf is an important international business and financial centre and renowned for its fashion and trade fairs. Located centrally within the European Megalopolis, the...

 from a four-member team led by Rolf Hansen, the current CEO. Participation was initially E-Plus
E-Plus
E-Plus is a mobile telecommunications operator in Germany. With 19.0 million subscribers, E-Plus is the third largest mobile operator in Germany, after T-Mobile and Vodafone ....

 with 90%, and the simyo Management with 10%. On 3 January 2007, E-Plus announced the complete takeover of simyo. simyo does not own a wireless network, but as a mobile virtual network operator, it uses the network infrastructure of its parent company.

simyo belongs to the Dutch telecommunications group KPN, the fourth-ranking mobile telephone operator in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

. The KPN group has over 32 million customers in Germany, Belgium, The Netherlands and Spain, where it has been operating under the trade name of simyo as a mobile virtual network operator since 29 January 2008 through the Orange network.

simyo bases its business strategy on management via the Internet, using a model similar to that originally made popular by online banks. This business structure permits considerable cost savings, which the operator passes on in its rates. Another aspect that helps to cut costs is that they do not subsidise terminals.

History

The provider mobilcom first tried to stop Simyo with an injunction, as E-Plus hadn't granted the same conditions to other providers and hadn't given sufficient notice about the start of the offering. The Federal Network Agency (formerly RegTP ) decided this case on 12 July 2005 in favor of Simyo, and justified this by saying that Simyo is not simply a new tariff but a product: Because of its commercial, technical and sales design, while forgoing costly comfort features, it creates essential differences to previous prepaid products.

The success of the pioneer Tchibo
Tchibo
Tchibo is a German chain of coffee shops and cafés, also known for its weekly-changing range of other products. The latter includes: clothing, household items, electronics and electrical appliances...

 (in cooperation with O2) and simyo's entry into the market in early 2005 were followed by several similar offers from other low-cost provides around mid-2005 resulting in a general price decline in the German mobile market.

Although simyo is not the first discount mobile network operator in the German market - O₂
O2 (Germany)
Telefónica Germany GmbH & Co. OHG is a leading provider of broadband and telecommunications in Germany. The company trades as O2 and Alice...

 in cooperation with Tchibo
Tchibo
Tchibo is a German chain of coffee shops and cafés, also known for its weekly-changing range of other products. The latter includes: clothing, household items, electronics and electrical appliances...

offered a mobile flat rate as early as October 2004 - simyo deserves credit for having initiated a general price decrease in the German mobile market. Following the successful launch of simyo more than 15 other discount mobile networks were started, including at least seven in the network of E-Plus.

In February 2007 Simyo heralded a new round of price decreases for data rates among NoFrills providers. Since 1 June 2007 Simyo offers access to the UMTS network. New customers will automatically receive a UMTS SIM card; existing customers are charged when reordering. Since October 2007 Simyo offers calls to German landlines and Simyo-participants under the name "simyo Flat" for a monthly fee. Since November 2008 Simyo also offers a data rate for 30 days up to a volume of 1 GB.

simyo hasn't announced the number of customers yet; industry insiders have suggested 350,000 simyo customers in October 2005.

Portel reported in September 2007 that the number of simyo customers rose to 900,000.

Externals links

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