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Report: Ad-Funded Blyk To Launch In India

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image The UK’s ad-funded, youth targeted mobile service provider Blyk is bringing its model of free talk-time and texts in return for viewing advertising to India. Mint.com reports that senior level recruitment is already underway, according to an unnamed source who was approached for a job at the new operation. Blyk spokesperson Ann Sarimo confirmed that Blyk plans on entering the Indian market, but declined to comment on timing.

SEE ALSO: Ad-Funded Blyk Sees Future With Carriers, Not Standing Alone

After signing up some 200,000 customers in the UK, the only country in which it is operational, it appears that Blyk, which was started by ex-Nokia (NYSE: NOK) president Pekka Ala-Pietilä, and funded by the likes of Goldman Sachs and Sofinnova Partners, has hit a wall. It reiterated a few weeks ago that it was shifting strategy, calling its UK operations, a “proof of concept,” and saying that it was looking to partner with carriers, rather than build their own service country by country as originally planned. One of its biggest challenges was acquiring customers, a problem that wouldn’t be such an issue with a carrier on board.

Can the Blyk model succeed in India? After the jump.

Can the Blyk model succeed in India? No word on which Indian carrier Blyk may have partnered with. But it seems that some think it could work. Sanjay Behl, head of branding and marketing operations at carrier Reliance Communications Ltd, told mint.com, “The model looks like a win-win for all stakeholders—cellular operators, customers and then advertisers. The youth would certainly lap it up.” Behl declined to say if Reliance was Blyk’s partner.

Moreover, it looks like one carrier there is already offering something similar, though not on the scale that Blyk does. In May, telco Bharat Sanchar Nigam Ltd (BSNL) launched a service in which customers who registered to receive ads would get free time. The offer is only valid, however, for certain cases, for examples, receiving ads on your idle screen, and only lasts for a certain time period, such as a month.

Jun 9, 2009 8:32 AM ET

Posted In: Advertising, Mobile, Companies, BPL Mobile, RCom

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