Glocalnet cancels call charges for private telephony

Glocalnet cancels call charges for private telephony Stockholm, Sweden-September 25, 2000 - "Our customers can now ring each other without paying any call charges." A quote from Stefan Krook, CEO of the teleoperator Glocalnet. From 1 October, all customers who have selected Glocalnet as their primary operator can ring each other without paying any call charges. "Ring as often as you like, and talk as long as you like with other Glocalnet customers for only SEK 19 a month!" the offer states. With this offer to its customers, Glocalnet has become the first operator on the market to cancel call charges for landline telephony for private customers. On 25th September, a nationwide campaign will be launched to promote a new way of using the phone. All customers who have selected Glocalnet as their primary operator can call each other without paying for the duration of the call, how often they make calls or the distance between them. Instead the customer pays a fixed charge of SEK 19 per month. Glocalnet's offer is of a totally new type and breaks with the almost 150 year old tradition of basing telephony charges on call duration and distance. During the last year, Glocalnet's customer base has increased substantially and currently consists of approximately 100 000 households. "We know that private individuals tend to make long, regular calls to a few selected friends and family members. If one individual managed to convince his/her partner, best friend and parents to become Glocalnet customers, the greater part of their telephone costs would be considerably reduced," says Stefan Krook. "There is no longer any reason for charging for the duration of a call. New technology makes these costs marginal. The trend is away from variable towards fixed charges as they reflect better where the real costs are," says Stefan Krook. A Glocalnet customer will pay call charges for overseas calls, to the mobile phone network and to companies and also for calls to private individuals who have not chosen Glocalnet as their primary operator. These charges are also extremely low. This new price model will be implemented for all current Glocalnet customers. Existing customers will be offered this service free of charge for the first three months. Initially this will mean a decreased gross profit margin, however, as the customer base increases this new price model will contribute positively to improved financial results. Glocalnet develops and provides communication services sold directly to the end customer or alongside marketing partners. This year, Glocalnet intends to become Sweden's third largest fixed private telephony player. The company's vision is to become a leading operator of Internet-based services in Northern Europe. Glocalnet has strategic collaborations with corporations such as Cisco Systems and Portal Software. Glocalnet is headquartered in Stockholm, Sweden, and the company's stock is quoted on Stockholm Exchange's O list. Facts: Glocalnet is well on its way to becoming Sweden's third largest teleoperator on the private market after Telia and Tele2. Glocalnet utilises the latest data technology, IP technology, to produce telephony services at lower costs than previously possible. A Glocalnet customer retains their subscription at Telia as this production component has still not been deregulated. Glocalnet sends specified telephone bills, imposes no waiting time and operates a customer services which is open 24 hours a day, 365 days a year. Glocalnet has recently launched its new web platform through which customers can easily contact customer services, update customer information and find more information on what the company has to offer. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/09/25/20000925BIT00070/bit0001.doc http://www.bit.se/bitonline/2000/09/25/20000925BIT00070/bit0002.pdf