Broadband & Mobile Featured Article
May 06, 2008
Orange Everywhere pro
By Gary Kim Contributing Editor
Orange has announced Everywhere pro, which provides small and mid-sized companies connections to the Internet both at the office and on the move. The Everywhere pro limited edition is available at the moment only for the first 2,000 customers, from April 24 to October 1, 2008.
The package combines unlimited fixed-line Internet access, telephony via the Internet, with unlimited calls to fixed lines in mainland France and three hours of mobile broadband Internet access each month using a 3G+ key sold separately.
The price is EUR 49 excluding VAT per month, with a 24-month commitment. The 3 G+ key is available for EUR 9 from Apr 24 to June 11, 2008.
The bundle is notable primarily for its pricing. The promotional price of EUR 49 per month excluding value added taxes, for a two-year commitment, is lower than rival Neuf Cegetel’s (News - Alert) FMC offering, which has a price tag of EUR 99 per month for a fixed and mobile broadband bundle with a three year commitment. But the three hours of 3G
data card-based mobile access per month lags Neuf Cegetel’s bundled fixed-mobile convergence package which includes a unlimited mobile broadband pricing scheme, says Rolf M. Schonhowd, Current Analysis (News - Alert) principal analyst.
You might find it odd that a service provider as large as France Telecom (News - Alert) would put a 2,000 customer limit on the offer.
A couple of issues might be involved. First, Orange avoids cannibalizing overall revenues by limiting the number of buyers. Orange also creates scarcity, and scarcity creates value. There also might be some thinking about testing the Web strategy of creating "invitations" to new services that are not available to everyone.
Again, this is a way of creating scarcity and perceived value for an offer that is relatively simple: unlimited in-country calling and fixed broadband, plus several hours of free mobile broadband.
Orange also is testing customer resistance to contract length as well as demand for relatively lighter mobile broadband use. What is most unusual is the limitation of "only the first 2,000" customers. That is a tack not many service providers have taken and bears watching.
One way to create interest and value is to offer lots of "micro" offers that contain different service elements, features and prices and that are available only in limited quantities for limited times. It works in retailing, where sellers will continually vary what is "on special," the times and days when such specials are available, and the specific content of the offers.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
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