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This is the first of a two-case series (ESMT-304-0016-1 and ESMT-304-0019-1). At the end of 2003 one of the fastest growing mobile virtual network operator''s (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. 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 senior management team of TDC are questioning how they should respond to this disruptive innovator. The (B) case discusses events after March 2004. This case addresses the themes of: (1) value innovation; (2) value chain evolution; and (3) industry disruption. It can be taught as a marketing, strategy or operations case, depending on the target audience and industry. This case contains colour inserts. See also the case ''easyMobile: Disruption in the Mobile Market'' (ESMT-304-0007-1) case by the same author. This case was previously numbered 304-478-1.