Telecom Italia Launches Offer Targeting MVNO Customers

Telecom Italia Launches Offer Targeting MVNO Customers

Telecom Italia has launched a new offer called TIM Supreme 50 Giga, with 50 GB of 4G/LTE data at speeds of up to 150 Mbps, plus unlimited calls, for €5.99 (US $6.61) a month, according to a report. The offer is available at TIM-affiliated stores for users who switch to the operator’s service from a range of MVNOs including Iliad, Fastweb Mobile, PosteMobile and CoopVoce. Customers of LycaMobile, Vodafone’s Ho.Mobile and TIM’s own MVNO brand Kena Mobile are not eligible. A new SIM card costs €10.00 (US $11.04) and the activation fee is €12.00 (US $13.25).

Tarifica’s Take

TIM’s Supreme 50 Giga package is an aggressively low-priced offer that clearly takes aim at Italy’s MVNOs. A generous serving of high-speed data on a proven-quantity network, with unlimited voice calls, is certainly a bargain at €5.99 a month, and this is definitely a valid strategy with which a major MNO could reclaim some market share from small budget-minded competitors. Whether it ends up being a true MVNO-killer, however, may depend on several factors other than price and quality of service.

For one thing, MVNO customers are likely to be averse to contracts. If the Supreme 50 Giga requires a commitment of any kind, that could be off-putting for some of these users. The fact that it is postpaid rather than prepaid, as appears to be the case, could also be an impediment, although if there is no long-term commitment, that could make it more palatable for those who are used to pay-as-you-go.

It should be noted that in addition to not cannibalizing its own MVNO brand, Kena, TIM is also keeping its hands off its rival among the major MNOs, Vodafone, as well as LycaMobile, a massive worldwide MVNO brand. The operator is not trying to declare war, only to launch a salvo against some local targets that it feels are vulnerable.