The UK and Europe are light-years ahead of North America when it come to mobile phone usage and applications.
In keeping with that trend, a new network slated to launch in September will offer free calls and texts to users in exchange for receiving advertising. The majority of ads will probably come in the form of text messages but there will also be some interactive campaigns.
The network, called "Blyk" will target 16-24 year-olds after recent research that found that the majority of users in this demographic are open to the ad-subsidized model. Coke, L'Oreal Paris and others have already signed on to participate. RedOrbit has some additional coverage here.
This announcement is significant as it will almost certainly have a destabilizing effect on the ultra-competitive European mobile market. It also is an indication of where the market will lead here in North America. In Canada particularly, we suffer from low penetration and high prices. A new player that offered free access in exchange for ads would be able to grab a huge chunk of market share.
I guess we'll find out what the North American consumer finds acceptable in the next couple of years as more ad based services are launched. Excuse me now, as I have to go write a business plan for an MVNO that serves up free text and calls for ads......
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