Orange signs virtual network deal, with Lycamobile, third past 12 months, taking the total to six. According to Orange’s VP new business and wholesale strategy, Mark Overton, the operator has some more deals in the pipeline with Sainsbury’s believed to be its biggest target. He also added that the six MVNOs are ‘only the beginning’. Lycamobile, the ethnic MVNO has been long established in the UK as an international calling card company. Its stock is sold by 50,000 independent retailers in the UK alone.
The MVNO will work in competition with Lebara Mobile which has 90,000 UK retail outlets, and Carphone’s Talkmobile business, sold through Carphone’s retail channels, as well as a host of other sub-agents.
The entrant has invested £10m into marketing its new Sim-only product that will target the UK migrant population. Subaskaran Allirajah, chairman of Lycamobile, said: ‘We aim to acquire one million subscribers within 12 months.’
Overton said that ‘as a brand it resonates’, and he also showed that the strong ‘distribution it has and the relationships with shopkeepers’ was the reason Orange had decided to partner Lycamobile.
Overton was confident that Lycamobile would be able to compete against the other ethnic MVNOs already in the UK market. He said: ‘We’ve not reached saturation yet.’
Lycamobile, will increase the number of stores to 85000 from October, with the addition of e-Pay, Payzone and the Post Office.

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