by Dan Dickinson, Research Analyst
26-Dec-2000
Prepaid subscriptions at KPN Orange have overtaken postpaid subscriptions for the first time (October 2000) as the boom in prepaid in Belgium continues. KPN Orange has now joined Mobistar as one of two out of the total of three Belgian operators which have a majority of prepaid subscribers, following the trend in western and southern Europe for subscribers to take out prepaid rather than postpaid deals.

Subscriber figures for October 2000

	Postpaid	Prepaid	Total
Proximus	1,725,800	1,084,200	2,810,000
Mobistar	676,300	826,600	1,502,900
KPN Orange	222,000	229,000	451,000
Country totals	2,624,100	2,139,800	4,763,900

(Source Operators, EMC Research)

• Q3 2000 figures for KPN Orange show more postpaid subscribers: postpaid - 198,000. Prepaid - 179,000. Total - 377,000
• Prepaid subscriptions have historically (since March 1998) always been higher at Mobistar.

KPN Orange says the boost in prepaid subscribers follows a concerted marketing campaign in 2000, 'We have targeted the younger market in the expectation that at a later date with increased usage subscribers will move over to postpaid products.' In December 2000, KPN Orange cut the cost of prepaid handset kits. A Siemens C25 kit with SIM card and BEF 2000 ($44) inclusive calltime has been marketed at BEF 3990 ($88). A Nokia 3310 with BEF 2000 inclusive calltime is being sold at BEF 8990 ($199). The handset's recommended retail price is BEF 9000.

• Mobistar Tempo subscribers can choose card-only packages costing BEF 900 ($20) (inclusive call value of BEF 900 + SIM card) and BEF 1500 (inclusive call value of BEF 1800 ($40) + SIM card). Cards are valid for one year for incoming and outgoing calls.

Belgium like many other countries in Europe is enjoying a huge growth in subscriber figures with the penetration rate expected by the industry to reach 46% by the end of 2000 (EMC World Cellular Database showed a figure of 45.7% at the end of November 2000). Research by Proximus suggests that in the 15-18 year old group - one in which prepaid is traditionally strong - 44% of the population have GSM handsets, compared to 14% in 1999. This trebling of subscribers has boosted prepaid subscriptions particularly at KPN Orange whose marketing has frequently appealed to younger people.

Tariffs

The increase in prepaid reflects partly the competitive tariff levels across the three networks with prepaid off-peak calls sometimes matching contract off-peak tariffs. Proximus markets its prepaid tariffs under the Pay & Go brand (launched January 1998). Mobistar's offering is called Tempo (December 1996) and Orange goes under the brand PrePay (April 1999).

(Source: Operators)

In September 2000 Mobistar launched a tariff aimed at the 10-24 year-old age group. The Tempo Generation tariff developed in conjunction with Dexia Bank, is aimed at customers of the bank's Axion account. Mobistar claims the service is a technological first as it uses a SIM toolkit to recharge Tempo cards direct from the subscriber's bank. Subscribers can consult the balance of their Axion accounts and the most recent transactions, as well as making payments. Mobistar says it is the first large scale mobile banking application implemented in Belgium. A promotional offer called 'Tempo in Axion' offered a package with a call credit of BEF 1,800 and a BEF 1,000 credit voucher for a GSM WAP handset available through Mobistar.

Services

The increase in services available to prepaid subscribers has again boosted its use.
An interconnection agreement between Mobistar, KPN Orange and Proximus has enabled SMSs to be sent from one network to another. Scratchcard recharging facilities have been improved especially at Proximus which offers 15,000 recharge points at Belgacom public telephones. That is in addition to 10,000 sales and recharging outlets. Roaming services have also been improved with Proximus offering incoming calls for prepaid subscribers across the European Union as well as Norway and Switzerland. (Incoming calls cost BEF 41/min during peak hours and BEF 20.5/min during off-peak hours.) Since June 2000, Mobistar has offered full roaming services in France (through Itineris) and The Netherlands (Dutchtone) with incoming calls only in the rest of the world. KPN Orange offers no roaming services. All the operators offer WAP access.