Danish insurance MVNO Alka Mobil sounds the battle horn

Danish insurance MVNO Alka Mobil is getting ready for a price battle | Photo: Jakub T. Jankiewicz

Alka Mobil, the mobile virtual network operator (MVNO) linked to the Danish insurance company Alka, will blow the battle horn tomorrow for what could become an all out price war on the Danish mobile market.

Tomorrow (Monday 8th Nov) the MVNO will be introducing a “game changing” all-inclusive package promotion into the Danish market with free Voice, SMS, MMS and Data consumption for DKK 99 (USD 15.4) per month.

Additionally an add-on travel package with 30GB data for usage abroad can be purchased for DKK 30 (USD4.66) per month, totaling DKK 129 (USD 20.06) per month.

In comparison, the MNO YouSee (TDC Group) charge DKK 299 per month for a similar package, although with only 20GB data usage abroad. Telenor and Telia both charges DKK 249 for the same as YouSee, and 3´s (Three) all-inclusive package with 25 GB for data usage abroad, costs DKK 250 per month.

The pricing from the sub-brands of the four MNOs are:

CBB Mobil (Telenor), DKK 179, including 15 GB data usage abroad. It is the same price for the Telia-owned Call Me, while 3’s sub-brand Oister has a price of DKK 159 for their all-inclusive package with 12 GB data usage abroad.

Alka Mobil was first announced in December 2020, as an independent company with Jess Mathiesen from Alka Insurance, as CEO of Alka Mobile. The MVNO even received a purchase offer from one of the country’s four MNOs before it went live, which it declined with a “not for sale”.

Alka Mobile launched its service in the market on the 2nd of March earlier this year with a free voice and 7GB data package for DKK 59 (USD 9.17) per month.

The service is available to approximately 2.5 million Danes (Population 5.8M), who are either customers of Alka insurance, a member of one of the unions with which Alka cooperates, or any persons in a households with an Alka insurance or a union membership. At launch, the MVNO was targeting minimum 200,000 customers over a period of four years.

“We are in a different situation than other mobile service providers. For us, it is not about making money on mobile telephony. It is all about being able to give our customers and union members some attractive benefits that make them happy, satisfied and hopefully loyal,” said Alka Insurance CEO, Frederik Sjørslev Søgaard, at the launch of the MVNO.

Telecom is not new to Mr. Søgaard, his background include various roles, including VP of Mobile during his 11-years at the Danish incumbent TDC.

Author: Allan Rasmussen
Managing director at Yozzo. Allan’s expertise includes the development and execution of growth strategies, market insights, trends and opportunities, new business models and strategies
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