This report presents a case study of Sunrise's multi-brand strategy in Switzerland, where the operator uses sub-brands to target different market segments, exemplifying a common practice among Western European mobile operators.
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Summary
It is common practice for mobile operators in mature markets, such as Western Europe, to operate under multiple brands. The use of sub-brands can help to counter flat or declining mobile revenue and subscriptions by capturing underserved customer segments. 53% of Western European MNOs use sub-brands and many well-established sub-brands account for around 10% of MNOs’ customer base. Switzerland is one out of eight countries in Western Europe in which every MNO uses sub-brands, making it a pivotal element of operators’ strategies in the market. Sunrise was an early adopter of a multi-brand strategy with the launch of yallo in 2005, which is the oldest sub-brand still active in the market. Today, Sunrise also uses swype and Lebara to cover the lower- and mid-market, while the Sunrise brand is positioned in the upper market.
Sub-brands are a key part of Sunrise’s corporate and growth strategy
Sunrise operates “flanker brands” as one of three key segments in the group, alongside “main brand” and “B2B”. The flanker and main brand divisions form the consumer segment. The flanker brand unit, led by CCO Stefan Fuchs, employs around 70 FTEs, with shared services across Sunrise (e.g., finance, HR) while most dedicated functions (e.g., customer service, technology, marketing) sit within the flanker brand division. Some of these functions are executed across Sunrise’s three sub-brands, while others are limited to one or two of its sub-brands, depending on the function. For example, swype, Sunrise’s app-based mobile offering sits on a different technology stack than its other two brands which make certain functions and its management less transferable.
Among its three business segments (flanker brand, main brand, B2B), Sunrise reported that its flanker brand unit achieved remarkable success, with robust financial and operational KPIs. Sunrise’s sub-brands served around 1m mobile, broadband, and TV subscriptions in 2024. Omdia estimates that approximately 23% of Sunrise’s combined mobile and fixed B2C customer base use its sub-brands. In comparison, Swisscom’s sub-brands accounted for 34% of its mobile postpaid customer base in 2024 (up from 19% in 2020) and 11% of its broadband customer base (up from 4% in 2020). Salt’s digital sub-brand Gomo accounted for 2.6% of its total mobile customer base in 2023, only two years after its launch.
Some MNOs that operate under a multi-brand strategy face difficulties in ensuring that the individual brands perform well while contributing to the overall group performance. The most common risk linked to sub-brands is ARPU dilution in case customers migrate from the main brand to cheaper sub-brands, and cannibalizing its own customers. However, if sub-brands have a well-defined target group and are distinct from another and the main brand, this effect can be minimized.
According to Sunrise’s CCO - Flanker Brands, Stefan Fuchs, the portion of Sunrise customers migrating to its sub-brands is not over-proportional, and there is also a sizeable portion of sub-brand customers who migrate to the main brand (Sunrise) which can help ARPU growth. As the brands are positioned in different segments, the migration typically takes place as customer needs evolve over time. For example, a student might start their customer journey with yallo for its low-cost options, but as their needs and circumstances change – such as needing more comprehensive services like device financing plans, family-friendly tariffs, or expanded TV offerings – they may consider switching to Sunrise. Sunrise also offers additional benefits, such as loyalty schemes or more advanced customer support, which can attract customers back from sub-brands. Another example is linked to FMC where customers subscribe to both mobile and fixed services, but these services are spread across Sunrise and its sub-brands. This arrangement is not ideal, as it does not bring the churn-reducing effect of a single-bill FMC bundle. In such cases, customers might be encouraged to consolidate their services under one brand. If there is a strategy to improve ARPU across the entire company, it can influence customer migration from sub-brands to Sunrise. This migration typically results in higher ARPU. Similarly, yallo can be used as a retention destination for Sunrise customers. Both scenarios benefit Sunrise overall.
Sunrise uses an all-rounder, a digital-first, and an ethnical-niche focused sub-brand
Sunrise’s oldest sub-brand, yallo, (see Figure 1) has the largest customer base of its three sub-brands. It launched mobile-only tariffs in 2005 but expanded into broadband and TV in 2020 and 2021, respectively. Since then, it has focused as a full telco on cross-selling, with a planned evolution into an FMC proposition. It is the only Sunrise sub-brand that provides fixed services, offering up to 10Gbps speeds. It mirrors the trend of the high adoption of FMC in Europe, with 42% of sub-brands in Western Europe offering fixed and mobile, the highest share among all regions.
Figure 1: yallo (the all-rounder)
Source: Sunrise, Omdia
Sunrise’s newest and most modern sub-brand, swype, (see Figure 2) reflects a wider trend in the market of MNOs launching app-based mobile-only offerings. Omdia classified 16% of sub-brands in Western Europe as digital sub-brands which share certain characteristics. This includes, for example, having no physical presence such as stores, and solely offering customer support and sales via digital channels. These sub-brands aim to mirror truly digital players of other industries, such as Netflix or Uber, rather than traditional telecom players. In Switzerland, swype was created to challenge the status quo of mobile with its “mobile. just better” slogan, offering a simplified, flexible, and transparent mobile experience that addresses common pain points of mobile users.
Figure 2: swype (the digital-first)
Source: Sunrise, Omdia
Lebara (see Figure 3) has been operating in a niche of the market, historically focused on the migrant community. Lebara was first launched in the UK and then expanded internationally, but it sold its Swiss division to Sunrise in 2013 which has since been using the brand under a licensing agreement. The brand became popular because it enabled migrant communities to contact their families with specific tariffs, avoiding very expensive charges. Although this concept has evolved in today’s digital age, offering telecom services adapted to culture and language can still give sub-brands an advantage over more generic competitors that operate across the whole country. In Western Europe, 7% of sub-brands still target migrant communities. Lebara’s positioning is being evolved in Switzerland, covering budget-conscious international customers.
Figure 3: Lebara (the niche)
Source: Sunrise, Omdia
Prior to Lebara, Sunrise operated Ortel which it acquired in 2013 to capture the growing prepaid market, particularly among African and Turkish migrants, and to react to new competitors, such as Lyca. As growth in prepaid slowed, Sunrise streamlined its portfolio by transferring Ortel customers to Lebara in 2018 which had a stronger brand awareness and a larger customer base. This consolidation reduced operating and brand licenses costs and avoided customer cannibalization due to operating two brands in the same market segment.
The management of sub-brands plays a pivotal role in their success as they operate in a fast-paced market characterized by a high failure rate. Competitive pressure is high, and it requires a rigorous evaluation of performance and strategy to succeed in the market. Sunrise with its dedicated flanker brand unit is a great example of an effective management of sub-brands and their role within MNOs’ wider corporate strategies.
Appendix
Further reading
Global Mobile Sub-Brand & Digital Brand Tracker – 2024 (October 2024)
Key Trends in Sub-Brand and MVNO Markets – 2024 (October 2024)
Global Mobile Sub-Brand and Digital Brand Report – 2024 (October 2024)
Switzerland: Service Provider Market Report ‒ 2025 (February 2025)
Author
Julia Schindler, Senior Analyst, Europe Service Provider Markets
