IKEA launches mobile phone service

By Michal Lev-Ram

Known for stylish and inexpensive furniture with names like Ektorp and Malm, Swedish retailer IKEA is entering the mobile phone market.

The furniture chain is the latest in a long line of companies that have attempted to turn themselves into mobile virtual network operators, or MVNOs, that resell wireless services. IKEA’s Family Mobile offering will launch in the United Kingdom this Friday, where it will run on the German-owned T-Mobile (DT) network.

Family Mobile will be available to IKEA’s loyalty card holders, and will operate as a pay-as-you-go service. In the United States, several non-phone companies have failed in similar endeavors. In 2006, ESPN shut down its phone service after being in business less than a year. But in the U.K. – home of Virgin Mobile, one of the original MVNOs – the concept has been gaining popularity.

IKEA could not be immediately reached for comment, and it’s not clear if the company plans to bring its phone service to other countries.

But Jason Baker, IKEA U.K. customer relationship marketing manager, said in a statement that the Family Mobile plan will help customers take control of their mobile phone costs in a climate “where every penny counts.”

Back to main column

Filed under ESPN, IKEA, MVNO, Mobile

13 Comments | Add a Comment | Email

Digg

Facebook

Kind of shows that phone companies have nothing to do with tech and everything to do with branding. Nokia et al build the phones, Siemens et al build the network and nowadays even runs it under outsourcing. Some other outsourcer runs the call centres and Amdocs runs the billing system. All the phone company actually does is advertise and IKEA can do that much better than Vodafone.

Posted By Prabuddha Delhi India : August 5, 2008 11:57 pm

I hope the phone does not come with IKEA instructions and an allen wrench

Posted By mg, canada : August 5, 2008 6:42 pm

The worst thing about it is that you have to put the phone together yourself

Posted By yves, san francisco CA : August 5, 2008 4:02 pm

IKEA isn’t obviously doing this for the revenue. Think about it. They are making multi bn Euro every year in sales. IKEA are just thinking ahead as always. If they really are the cheapest in the UK, my s*** expensive Vodafone card is done.

Posted By J.C. Brighton : August 5, 2008 2:14 pm

With their pricing strategy, they will probably be a contender in some countries where competition is lagging behind.

Brandon, what about http://www.boklok.co.uk/

Posted By Anders, Stockholm : August 5, 2008 7:46 am

Sounds great ! I’ll go there and buy one immediately as I heard the price is 9 pence per minute – much cheaper than anything else. in my view IKEA always stands for best value for money.

Posted By Chris,London,UK : August 5, 2008 5:27 am

ikea and pay as u go cellphone service?lol and lmgdmfao at that one!
ikea IS expecting to lose money as the mortgage crisis begins affecting every business everywhere
but this is just plain stupidity
loyalty card?lol…just another way for ikea to sell your private personal info to other companies so they can phone u on the ikea cell with BS ads!
i predict failure within the year

Posted By ap,vancouver,b.c.,canada : August 4, 2008 9:59 pm

Sounds like a good service, although the phone comes in a brown box and you need to assemble it.

Posted By Corey, Cambria, CA : August 4, 2008 7:03 pm

Doesn’t seem that strange, afterall food supermarkets entered new markets long ago. Does this mean that Ikea is expecting a drop in furniture profits and is looking for other ways to make money?

Posted By Anonymous : August 4, 2008 6:44 pm

I heard the phone folds out to a couch.

Posted By Cousin C, New York, NY : August 4, 2008 6:35 pm

Well Brandon, Ikea is about innovation and fair pricing. That’s why you should go get an Ikea Family card

Posted By Soren Emmen NL : August 4, 2008 6:10 pm

its like blockbuster buying circuit city… what! it wont work

Posted By k rossco , orlando : August 4, 2008 5:46 pm

hmmm…. i don’t understand this??? am i the only one that doesn’t associate phone or technology period with a furniture company??

Posted By brandon, mt. laurel, nj : August 4, 2008 4:27 pm

CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.