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By early 2004 one of the fastest growing mobile virtual network operators (MVNO) in the world was Telmore, a Danish service provider. Since its inception in November 2000, it had captured 9% of the total mobile telephony market in Denmark through a simple, transparent and low cost Internet-based model that had proved a big hit with customers. It had led a massive price decline in mobile prices, with charges for voice calls dropping 54% in 2003 alone. The rapid growth of Telmore had not been unnoticed by the Chairman of easyGroup, Stelios Haji-Ioannou. An evangelist of the power of the Internet to transform long-established business models, Stelios was best known for creating the European discount airline easyJet and founding one of the world's fastest growing car-rental companies, easyRentacar. On observing developments in Denmark, Stelios was sure that a no-frills business model - like the one used to undercut the traditional airlines that did away with large numbers of staff and infrastructure - could radically transform the UK and continental European mobile industry. Could Stelios succeed in taking this model beyond Denmark, and what were the implications for established mobile phone companies in the markets he was aiming to target. This case addresses the themes of value innovation, value chain evolution and industry disruption. It can be taught as a marketing, strategy or operations case, depending on the target audience and industry.

The case study analyzes the Danish telecommunications sector and the dilemma TDC Mobile International, Denmark's largest incumbent Mobile Network Operator (MNO) is faced with of how to respond to Telmore, the rapidly growing new entrant to market, a Danish service provider that at the end of 2003 was one of the fastest growing mobile virtual network operator (MVNO) in the world. Since its inception in November 2000, Telmore had captured 9% of the total mobile telephony market in Denmark through a simple, transparent and low-cost internet-based model that had proved a big hit with customers. It had led a massive price decline in mobile prices, with charges for voice calls dropping 54% in 2003 alone. By early 2004 Telmore was expected to reach 500,000 customers and to move past Telia to become the fourth largest mobile operator in Denmark after TDC, Sonofon and Orange. The Telmore case study A analyzes Telmore's business approach and strategy.

The case study analyzes the Danish telecommunications sector and the takeover of Telmore by TDC Mobile International. Through the takeover, TDC managed to acquire its fastest growing competitor on the Danish mobile telephony market. While Telmore's basic service proposition remained largely unchanged after the takeover, TDC made several tweaks to the business model. Telmore's business continued to grow into mid 2004, with the company capturing market share from both the full-service MNOs and other low-cost service providers. The Telmore case study B examines the acquisition of Telmore by TDC as well as the general consolidation of the Danish telecommunications market by 2004.