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29th July 2010
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Home » Maximising Wireless Profit Program » 2008 » MVNOs & Distribution Strategies » 

New Consumer MVNO Opportunities

November 2008 (29 pages)

The first MVNOs targeted markets with high penetration levels, good network availability and above average ARPU. These markets soon became highly competitive and MVNOs began to operate on very thin margins and many failed. More recently successful consumer MVNOs have been characterised by a low cost mass-market approach, a niche market approach or by MNOs using new brands to target new segments. While MVNOs can help load an otherwise under-utilised network and provide a relatively low-effort revenue stream for MNOs, they also distance the network operator from the customer relationship and take a slice of the margin, both of which may be essential to maintaining EBITDA in increasingly competitive mature markets. However, the MVNO may be a necessary evil, if the alternative is to lose market share over time as increasingly focused niche products eat into the core MNO customer base - if the MVNO is hosted on the network, at least the customer is retained to an extent.

This report updates the MMD view on MVNOs, mostly in Europe, providing a view of how the segment has evolved and how it both helps and threatens the MNOs on which it depends. The report concludes with concrete recommendations to those wishing to offer services to mobile customers via the MVNO channel.

Price: EUR 2,500.00 / GBP 2,400.00

if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us

Table of Contents
1OVERVIEW1
2INTRODUCTION2
2.1Background to the Report2
2.2Defining the MVNO2
2.3Report Content3
2.4Currency Conversions3
3THE MVNO ENVIRONMENT4
3.1The MVNO Business Framework4
3.2MVNO Indicators5
3.2.1Introduction5
3.2.2Penetration and Market Structure5
3.2.3ARPU6
3.2.4Subscriber Acquisition Costs6
3.2.5Regulatory Environment6
3.2.6MNO Approach6
3.3MVNO Proliferation in Europe6
3.4The Role of MVNOs8
3.5Developed vs. Emerging Markets9
4CURRENT MVNO ACTIVITIES10
4.1MVNOs in Developed Markets10
4.1.1Price Driven Mass Market Approach11
4.1.2Niche Focus12
4.1.3Convergence/Data Focus16
4.2MNO's Own MVNO Operations19
4.2.1T-Mobile Congstar19
4.2.2KPN20
4.3Developing Market MVNOs22
4.3.1Potential New MVNO Opportunity Areas22
4.3.2Eastern Europe22
4.3.3Virgin Mobile India23
5CONCLUSIONS26