12/8/2010 11:24:00 AM
XLN Telecom signing 1,000 users a month
XLN Telecom is signing more than 1,200 mobile customers each month following its launch into the mobile market in January and aims to have 50,000 mobile customers on board within three years.
The London-based fixed-line reseller targets the smaller end of the SME market, typically businesses with one or two connections, providing high quality, fixed-line, mobile and internet services. In the last three years, XLN’s revenues have grown substantially from £27m in 2006/07 to over £54m in 2009/10.
XLN Telecom, which also runs an MVNO proposition via a Three wholesale deal with Gamma Telecom, sees its mobile strategy as a key part of its business.
XLN Telecom CEO and founder Christian Nellemann tells Mobile: ‘It is all about getting more products to our fixed-line customer base, which stands at around 125,000. We started selling mobile to them earlier this year and it really took off by July. We are now signing 1,200 customers a month, giving us a base of around 5,000 mobile customers.
‘We have a rate of 15,000 customers a year with the mobile team now and are looking to expand that to 20,000 a year. We hope to have signed up around 50,000 mobile customers within three years,’ he added.
The runaway success of its mobile offering, which launched in January this year, came as something of a surprise to Nellemann. He tells Mobile: ‘We started out with an incredibly slim offering, launching it as a Sim-only proposition as we thought our customers would have a mobile already. But I was wrong, and in fact 85% of our sales are handsets with a Sim.’
The demand for handsets is so strong that XLN Telecom is planning to expand its portfolio of smartphones, moving from low-end devices to more upmarket handsets.
Nellemann says: ‘We are listening to our customers and they are telling us very clearly they want a mobile phone with the deal, so I can guarantee we will be trying out up to 15 new smartphones very shortly.’
The reseller is also increasing its mobile sales team from 15 to 25 by the end of the year with more appointments planned for the New Year.
XLN deal with British Gas and E.on
XLN Telecom is trialling an energy supply deal with British Gas Business and E.On to sell cheap gas and electricity packages to its customers.
British Gas and E.On will pay XLN a fee for each customer it signs up.
Nellemann says he has yet to be convinced that providing energy to XLN Telecom’s customers is the way forward for the business.
‘We are testing it. I would say I am not entirely convinced it fits perfectly with our business model. But if the trial shows we can sign twenty to thirty thousand customers in three years time then that is quite a lot of value.’