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5th February 2012
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Home » Maximising Wireless Profit Program » 2005 » MVNOs & Distribution Strategies » 

Tier 1 Operators - MVNO Market Development Strategies

December 2005 (15 pages)
Tier 1 mobile network operators ("Tier 1s") refer broadly to the early entrants in a mobile market who have built significant market share and brand recognition. This report introduces MVNOs from the perspective of a Tier 1 operator. We summarise the factors influencing the market, the various types of MVNOs, the reasons for partnering with them and a summary of the risks that MVNOs may pose.

Tier 1s may choose MVNO partners that already operate successfully in well-defined market segments. This report highlights the need for Tier 1s to identify the criteria they require to assess each potential partner in their market. The benefits for Tier 1s of hosting MVNOs are often unclear, and they may conclude that there is no strategic advantage. This report highlights examples where MVNOs have created value for Tier 1s with their business models, and where Tier 1s have missed opportunities with innovative partners.

Price: EUR 2,500.00 / GBP 2,100.00

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1Overview1
2Why should Tier 1s care about MVNOs?2
2.1Maturing markets2
2.2Consumers driven primarily by handsets and by basic service price2
2.3Subscriber acquisition costs3
2.4Allow others to address specific segments...and let them shoulder the risk3
3Strategies for Tier 1s to accommodate MVNOs4
3.1Decide the policy for partnerships with MVNOs4
3.1.1CBB & Telmore in Denmark5
3.2Determine the potential partners and the types of possible competitors6
3.2.1Price/Value6
3.2.2Affinity players7
3.2.3Community segmented7
3.2.4Lifestyle & technology players8
3.3Be selective: choose the right MVNO partners9
3.3.1A strong brand allied with a smart marketing plan10
3.3.2Ambitious growth plans, and realistic growth potential10
3.3.3Distribution network and customer touchpoints11
3.3.4Strategic benefit11
3.4Partner with MVNEs?11
3.5Negotiate the right wholesale agreements11
3.6Look to create value for shareholders12
4Risks12
4.1Cannibalisation, or a reduction in the value of the market?12
4.2No sure-fire certainties13
4.3Customer ownership and development13
4.3.1Saunalahti, TeliaSonera and Elisa in Finland13
4.3.2Customer development14
4.4Rivals aggressively signing new MVNOs14
4.5Is it necessary to partner with MVNOs?14
5Conclusion15