Orange is now called Salt
After the takeover by the French entrepreneur Xavier Niel, Orange has a new name. As the sparrows have already chirped from the rooftops, the mobile provider will be called Salt in the future. The company reiterated that it does not want to start a price war.
"We are launching a premium brand," Andsjö had said in an interview with the newspaper NZZ am Sonntag. The company wants to score points with subscriptions that allow unlimited use within Switzerland, as the Orange/Salt boss announced at the event to launch the new name in front of 1,200 guests - including many Orange/Salt employees - on Thursday evening in Zurich. There are Swiss rates, Andsjö said: the cheapest Pass subscription costs 999 francs per year or 83.25 francs per month. There are also subscriptions for the young and the old, as well as for people who want unlimited calls in Europe.
The existing Orange subscriptions will remain valid, Andsjö said in an interview with the news agency SDA: "We didn't want to make any big changes to the offer." A revolutionary change in the tariff structure was never intended, he added. Andsjö thus rejected speculation about a price war that had circulated after the takeover by Niel.
The new Salt also wants to entice customers with bundled device offers. In addition to the subscription and the smartphone, these also include a tablet computer and another device, such as a portable speaker, headphones, or a keyboard. Salt is thus following on from Orange's Duo Pack offers, with which smartphones and tablets were sold together.
Telecom expert Ralf Beyeler from the Internet comparison service Comparis judged: "Salt: Salted prices for new subscriptions." Compared to the big competitors, Salt and Sunrise are practically the same price for the cheapest subscription. "However, the price difference to the offers of M-Budget, Aldi and UPC Cablecom is large," Beyeler found.
Further expansion of the cell phone network
Salt also wants to introduce phone calls via Wifi. Customers can use any Wi-Fi hotspot like a cell phone antenna. This will enable them to make calls even in buildings where there is no cell phone network reception, for example. Salt intends to continue expanding its mobile network. By the end of the year, 96 percent of the population should have coverage with the 4th generation of mobile communications, LTE (also known as 4G). This enables surfing speeds of up to 150 megabits per second (Mbit/s).
Things are set to get even faster in the big Swiss cities. LTE Advanced (also known as 4G+), which doubles the speed compared with LTE, will go into operation there by the end of the year. In addition, Salt plans to build 300 new cell phone antennas and thus increase network coverage. This is the largest increase in network coverage within a year since Orange entered the market in 1999.
Name change noticeable for customers
The name change from Orange to Salt is also noticeable for customers. During the time of the changeover, stores will be closed for 72 hours. The goal is for at least 90 percent of the stores to open with the new brand on Monday, Andsjö said. During those three days, customer service will also be limited, he said. The website will also be offline from 9 p.m. Friday until Monday morning to allow systems to be adjusted. While these measures met with understanding in some social media, there was criticism on Twitter, for example, that customers will have to re-register for their online account.
In general, the name change is a feat of strength for the company. More than 16 trucks and 65 delivery vans were used for logistical handling. In total, the exercise cost 40 million francs. In addition to the redesign of the stores, it also includes an increase in marketing efforts to make the new brand known. Andsjö plans to open more stores, but did not say how many.
Long search for new name
According to Andsjö, the search for the new name began more than a year ago. Over time, 737 possible brand names were evaluated. Six concepts were looked at more closely, two were developed further and finally one was selected. For this, 1300 customers were surveyed.
With the new name, the mobile operator can save on license payments to France Télécom, which owns the Orange brand, from the beginning of May. Orange Switzerland had been sold by France Télécom to the British investment company Apax in 2012. At the time, a five-year license agreement was signed to continue using the Orange name, Andsjö said. The agreement expires at the beginning of 2017.
License fees saved
Last year, Orange Switzerland had transferred 21.4 million francs to the French for license and other fees. This means that after two years with a new brand, the mobile operator is driving cheaper. The actual costs are even greater, Andsjö said: "If we add everything up - licensing costs, marketing and stores - we have so far invested 80 million francs a year in the brand of another company instead of building our own brand."
Apax, for its part, had sold Orange Switzerland in February to telecom entrepreneur Niel, who owns the provider Iliad in France. Niel put 2.3 billion euros (2.8 billion francs) on the table for the deal. With the sale, Apax made a strong return of 800 million francs. (SDA)
